Companies in transition must signal stability, continuity and reliability

A high-profile civic leader launching a nonprofit. A patriarch steering a family business. A beloved CEO nurturing a company to new heights. These are all wonderful elements for a brand — until they’re not.

Life happens, and sometimes it’s jarring. A sudden illness or accident has the potential to throw a brand into crisis. But you can be ready, regardless of how dramatic the leadership transition.

A succession plan is Part One of maintaining stability and continuity. Part Two is being prepared to expeditiously communicate that plan.

At most companies, meeting payrolls, boosting sales and controlling expenses top the corporate must-do list. Succession plans for key executives may not be accorded that level or priority. In fact, about two thirds of U.S. companies have no succession plans at all.

More alarming is that even those with a succession plan often overlook how to communicate significant changes to key constituents –– employees, board members, suppliers and customers. In many cases, especially in small or family-owned companies, lines of succession may appear to be obvious. What’s not obvious is the need to communicate the implications of succession.

Companies in transition must