Thought Tweet #467 Consequences are the legs that support accountability.

The Thinking Behind The Tweet

Where consequences do not register, in the end there can be no accountability. Consequences take the form of rewards...either positive or negative. Consequences are the 'effect' half of 'cause & effect'. If we remove the 'effect that follows accountability' then we also remove the accountability.

Better carrots than sticks; better sticks than nothing.

According to a recent poll¹ of small-business owners, 24% have a succession plan for their retirement.

When asked about how the business would be handled at the time of retirement:

·         23% of the owners said they would simply close the business

·         20% of the owners said they would sell the business to a 3^rd party

·         18% expected to transfer the business to a member of the family

·         12% said the business would be sold to a partner or employee

·         27% were not sure what would happen to the business 

It seems that 3-out-of-4 owners of small businesses either (1) see no need to set a succession plan or (2) see a need for a succession plan but don’t get around to creating it. About 1-out-of-4 owners intend to simply close the business so they do not see much need for a succession plan. About 1-out-of-4 owners don’t know what would happen to the business…apparently they can tolerate the ambiguity. The remaining 2-out-of-4 owners – 50% of owners – anticipate the formal transfer of their business either to a 3^rd party, a family member, a partner, or an employee.

Putting this into a few perspectives:

 ·         For employees of small businesses: If you work at a small business then the odds are 1-to-1 [even money] that the owner of the business expects to sell or transfer the business to someone when he or she retires. And, the odds are 3-to-1 ‘against’ there being a plan in place to cover that sale or transfer. 

 ·         For clients of small businesses: If you buy products or services from a small business then the odds are 1-to-1 [even money] that the owner of the business expects to sell or transfer the business to someone when he or she retires. And, the odds are 3-to-1 ‘against’ there being a plan in place to cover that sale or transfer. 

 ·         For suppliers to small businesses: If you sell products or services to a small business then the odds are 1-to-1 [even money] that the owner of the business expects to sell or transfer the business to someone when he or she retires. And, the odds are 3-to-1 ‘against’ there being a plan in place to cover that sale or transfer.  

Footnote:

1.    TD Waterhouse’s early October 2011 Business Succession Poll of 609 small business owners

Thought Tweet #466 Really, self-control is all about crises: how to handle them and how to avoid them.

The Thinking Behind The Tweet

This applies to crises big and small, to internal crises [negative emotions], and to external crises [other people's crises].