Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
Dodd Clasen,
Creatis:
612.333.3233
do*********@*****is.com
www.creatis.com
“YOU DON’T WANT to be there, so don’t,” a peer from the Entrepreneurs Organization advised me.
“But the business has grown and we need greater accountability and a focus on business outcomes. I just need to get committed,” I protested.
My friend leaned forward and said, “Look. Chances are you will never be good at something you don’t like doing, so stop doing it!” I had barely opened my mouth to object when he insisted, “STOP! Let someone with those skills run the company. You be great at doing what you love.”
His point was beginning to sink in. Creatis, the graphic staffing company I had launched in 1998, had grown out of the high-energy, somewhat chaotic entrepreneurial environment that I loved, into an entity nearing 50 employees that needed structure and accountability. Tighter management was required and I did not relish the role. I needed to take steps toward succession.
My style of befriending and trusting the potential of every employee was ideal for launching our type of business. But as the company grew, employees who once worked hard and selflessly started politicking for title and status. The work was suffering and growth was stymied.
As I made noble attempts to hold trusted employees accountable, I found myself becoming resentful when they didn’t respect business outcomes. I became frustrated with a job I didn’t want to do.
The conversation with my entrepreneurial associate was cathartic. It helped me come to grips with what I needed to do: find a successor. And the ideal candidate was right there under my nose.
Chuck Swensson had been demonstrating his leadership as director of operations at Creatis for several years. He understood business outcomes and asked for clarity on these when making decisions.
He had a talent for being firm yet fair, and very consistent with employees. He took responsibility for his mistakes and learned from them. Most importantly, he understood my vision and was able to translate it into daily, weekly and monthly tactics. While at times we disagreed, Chuck’s loyalty to the business and my vision never wavered.
In preparing for succession, I developed a document of my vision and the company strategy. It laid out what kind of company Creatis would continue to be as well as some specific operating principles. We established a board of directors to assist in the oversight of the company and we documented performance expectations for Chuck and the shareholders. We also established an equity program to give Chuck a stake in the business.
I found that the business transition was easy compared to the emotional process of letting go at Creatis. Stepping away from all you’ve done for a decade is a leap into the unknown. Added to my concern for the business was my own personal crisis of meaning. What future contributions did I have to make to the world? Recognizing these emotions, I communicated to Chuck that his role required him to be a business manager and leader as well as a personal counselor to me as the founder.
Chuck understood these dual roles and helped ease the transition in a number of ways. He shared anecdotes about the business and asked for my advice periodically. He found times to engage me with employees and he included me in companywide events.
All of this helped to smooth the transition and reassure me, and ultimately it gave Chuck the freedom to do his job. He demonstrated that matters were under control and as I gradually pulled away from the day-to-day operations, Chuck gave me non-verbal “permission” to be absent from the office.
The most critical step in succession is for the founder to move on. If the entrepreneur doesn’t do this, he/she is likely to hold onto the business, derailing the successor’s efforts to move to a new model.
I discovered ways of re-deploying the natural gifts that helped me launch Creatis. I began connecting with other entrepreneurs and academicians and found an opportunity to teach and mentor student entrepreneurs at the University of Minnesota’s Carlson School of Management. I also serve on several business boards and have launched a new venture: Retreat Quest, an all-inclusive retreat center and program in Florida for leadership training and exploration.
There are undoubtedly people who enjoy the transition from entrepreneur to manager. But I don’t think it’s common. Most entrepreneurs like the building process and most managers like overseeing growth.
I believe that the key to growing a company is in accepting this reality and planning for eventual change.
It is likely that Creatis will morph again as it continues to grow into a larger company yet. I look forward to overseeing that challenge too.
