Reporting
To whom does the successor report as he or she progresses along their respective grooming plans? This may change over the grooming period. Again, it is better to ensure the successor is not reporting to direct family members, as this can cause some issues with respect to accountability.
Compensation
How will the successor be compensated over the grooming period? Is the current compensation in line with fair market value (i.e. what you would pay a non-family member to do the same job)? Is compensation while being groomed in line with fair market value and what will the compensation package be at the end of the grooming period, assuming the successor successfully completes the process?
Flexibility
Grooming plans tend to be fluid and may need to change over time to accommodate business and individual grooming needs. All changes need to be approved in writing by the successor.
Assessment
At the end of the grooming period, the potential successor would be assessed by the owners with feedback from the mentor(s) and other key senior employees as to their readiness and effectiveness in assuming their new role and to become future owners.
Continuing education
The family business could commit to a process of continuing education for the potential successor, including courses and conferences related to the jewellery industry, and the field of family enterprise.
Accountability
Ideally, the person being groomed should develop the first draft of their grooming plan with an active family member once the desired future position is determined and the initial benchmark evaluation is done. The draft is then refined and approved by the owners and the mentor(s) and select members of senior management (if deemed appropriate). Once agreed by all, the parties should sign off. For a potential successor who is new to the family business, the grooming plan will need to be developed by the current ownership group, along with their senior management team. The family members being groomed are considered the ‘owners’ of their grooming plans and as such, it is up to them to make sure it gets executed to the best of their ability.
Communications
The existence of the grooming plans (not necessarily all the details) should be shared with the broader family when it holds its annual ‘family council meeting’ to talk about the overall succession plans.
