Succession Process and Architectural Design Phases

As contractors prepare for succession, they should use the same lessons they have learned in developing and then building projects.

D. Brown Management Profile Picture
Share

Architectural Design Phases: Schematic > Design Development > Construction Documents

Succession: Take it in Phases. Think about architectural design phases. Schematic design, design development, and construction documents.
  • Start with a basic Schematic Design where you define the outline of a deal, including Conditions of Satisfaction and determine if the financial basics will work.
  • Gain alignment with the Primary Stakeholder Groups around the Schematic Design, including ensuring the basics of capital, competencies and trust. 
  • Enter into the Design Development phase the same way you would on a construction project. There are dozens of details to work through at this phase and the most important thing is (1) selecting the right specialist 3rd party advisors to help structure the deal, and (2) setting a regular meeting rhythm to keep the process moving forward. This is where the structural details of the deal will come together, along with refined financial models - consider this like “Value Engineering” and should only improve the model from the Schematic Design phase.  
  • The final stages is the equivalent of the Construction Documents with the preparation, review, and execution of a variety of legal documents, including buy-sell agreements, operating agreements, promissory notes, etc. 

Too often, we see people wanting to jump ahead and “Start Building” without spending the appropriate time on the foundation of a good Schematic Design and prerequisites. An experienced 3rd party facilitator can be invaluable in this phase. Like an architect, they must keep the conversations at the right level during this phase. 


Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Cash Flow Tip 3 - Contractual Details Matter
The reason we are called contractors is because we work off of a contract that defines the scope and terms of what we build. How we negotiate and manage the contract determines cash flow.
Learning, Doing and Teaching
Growing yourself. Growing others. Growing your company. You will never achieve your full potential if you are not pushing your limits every day on what you are capable of doing.
Be Specific About Problems
The business of construction is filled with constant problems. It’s not that great contractors don’t have problems, it's that great contractors have learned how to troubleshoot first, which allows them to learn from their problems faster.