A four-step plan to successful succession.

Generations of accountants before us have planned for succession. Why do we think we are so different as consulting accountants?

Because we are different. Not dramatically, but we are different in that we have fewer professionals in our consulting groups and have specialized skills

Traditional accounting services, such as tax and audit, have many hands working the well, so to speak. The more specialized the consulting services, the more complex the succession planning becomes. It may have taken years to learn the ins and outs of your particular consulting specialization. When you add what may amount to decades of experience on top of this knowledge, it becomes readily apparent that there may not be a huge pool of people who know exactly what you do.

Just as we counsel our clients, succession from one generation to another does not happen by accident. Planning for business continuity is a critical factor in successfully passing the baton; it's a rigorous process that tests the intellect and psyche. Emotionally, we must face the fact that there will be others after us. We may have to look at control issues, address power struggles and, in the end, face the fact that we are not invincible. On the business side, we must consider relinquishing long-standing business relationships to the "next in line," plan for the future of the firm, and ensure that our strategy aligns with other succession plans within the firm.

When should you address succession? "Sooner than later" is what we tell our clients. Is this the advice we follow for ourselves? We know that succession is not a decision; it's actually a highly organized process that encompasses many phases, including information gathering, research, evaluation and honest reflection. In short, we must face what we fear the most and put a plan in action that ensures our consulting practices survive succession.

Succession isn't all about foreboding. We've worked hard to achieve success and have dreamt of the day when we hand over the reins to a competent successor and realize a considerable return for our equity. This dream can be realized by following this four-step plan.

#1 -- Define Goals and Objectives

Not only should the firm have a vision for its future, but your consulting group should have a current vision. This helps a competent successor follow your dreams for the group's future, right into reality. Plan meetings with firm partners to discuss the firm's goals and how your group's future goals can align with those. Discuss concerns about what will happen when you exit the firm.

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#2 -- Determine a Successor

Perhaps the single most difficult aspect of succession planning is identifying whom will take your place. Beyond the emotional issues mentioned above, specialized consulting takes certain skills and talent. The successor must have the personality and skill set to successfully serve current clients. Is the successor a junior person that can be groomed? Will you require a strategic new hire? Is a merger of a qualified firm's consulting group in your future? Revisiting goals and objectives will answer these questions and allow you to choose strategically.

#3 -- Groom Successors

If you choose to groom the upcoming successor, ensure you set the person up for success by implementing the tools needed. Now is the time to implement systems and formalize processes. If you have a matter of years to groom this professional, start now by introducing him or her to your clients. Introduce him or her as a recognized leader, and explain how this person is a great consultant. Begin planning how to supplement skills and how you can instill your leadership values. At the same time, be sure not to hold on too tight. Freedom to fail offers room for learning.

#4: Implement the Plan

Once the plan is in place, ensure that all parties understand the strategy behind it. The succession process includes many transition periods. Gradually, you can turn over more of your day-to-day responsibilities. You can spend more time setting up the successor for success by expanding your introductions to key referral partners and other key contacts.

Succession for consultants is different. It requires a bit more diligence and perhaps more time to locate a successor with the right skill set and personality, but in the end, successful successions are built on planning early, thinking strategically and hiring smart.

John W. Turnage, CPA, is a shareholder of Turnage & Co., P.C. Contact him at john@tcocpa.com.