HVBF Monthly Meeting - Human Resources Roundtable
Thursday, August 2, 2001, 8:30 AM - 9:30 AM

Host:

Systems Alliance

Attending:

Joe Biglin, Breakaway Games
Marty Blair, Schmitz Press
Eileen Edwards, KCI Technologies, Inc
Susan Fine, PDP Group
Patsy Griffin, Lucent Technologies
Mary Ellen Judy, KCI Technologies, Inc.
Pat Kilroy, Systems Alliance
Joan Levin, Medical Mutual Liability Insurance Society of Maryland
Shirley K. Tyler, Right Management
Rick Webb, Atlantic Financial Federal Credit Union
Gail Williams, McCormick & Co

Shirley Tyler facilitated the discussion on Succession Planning

Marty Blair shared with the Roundtable the detailed steps taken by his family owned, closely held company to assure successful succession. Although Marty is not “family”, he feels secure because of the planning steps taken by Schmitz to facilitate smooth succession. 

Patsy Griffin related the succession challenges met by Lucent Technologies. An unsuccessful turn-around was put back on track with the return of the former C.E.O. 

Rick Webb explained his companies plan for succession. Morale issues are involved if successors are announced before the plan is actually executed.

Joe Biglin played devil’s advocate by stating that in many cases, succession plans are never executed as planned. At execution, many unplanned changes are made. Joe challenged advance planning as a possible waste of effort.

Gail Williams related her husband’s experiences with his employer who contributed to employees’ 401k with corporate stock which declined in value because of poor succession planning.

Less than 30% of small businesses have any succession plan at all. Yet, the consequences of no plan are frequently disorganization and failure. Approaches to succession planning differs if your company is publicly or privately held but the end results are the same. 

Please see the attachment for more information on succession planning in family businesses. It is a paper written by Dr. Harsha Desai, Professor of Management and Director of the Center for Closely Held Firms at member Loyola College Graduate Center. 

See, also, the front page of the Wall Street Journal, August 2, 5th column
"What happens when King Alan Goes?"… Alan Greenspan is 75 years old and who
will be his successor? 

Our next meeting of the Roundtable will be on Thursday, September 6 from 8:30 a.m. to 9:30 a.m.. Our host will be JMT Engineering at 72 Loveton Circle. We will discuss “Balancing Work/Home Life. Please tell us how you do it! Please advise me if you will attend by website www.hvbf.org or email at director@hvbf.org. Identify the date of the event.

This summary will also appear on our website www.hvbf.org under Events.