The 3 Cs of Leadership is a powerful framework to help you navigate the delicate period between the first conversation about exiting your business all the way through to your actual exit.
As much as you may want to delegate many aspects of the process and journey, you can’t delegate your leadership.
Your personal influence and behaviour are critical to the outcomes you seek – that is, if you want to optimise your results.
Depending upon the level of planning and preparation needed, your exit journey may extend over several years.
And this means you have to be prepared to lead the people involved, while balancing that journey with managing the business.
For example, you may have to delicately position exit initiatives as business-as-usual initiatives so staff who are unaware of the exit plan, embrace the project for its long-term benefits.
Leadership During Business Exits
There is an abundance of literature and information available about leadership and the many qualities and behaviours people consider important for leaders.
As far as we are concerned there are three aspects of leadership that stand out as critical at this stage of the business’s life cycle.
We call them the 3 Cs of leadership for business exits.
What are the 3 Cs of Leadership?
Our 3 Cs are certainty, clarity and courage.
These are the qualities and behaviours business owners need to model, especially during this period of their business, because it will influence the people they depend on to support their goals.
No matter what you say, your staff are always watching what you do – so it is important how you show up.
"The key to successful leadership today is influence, not authority." Ken Blanchard
Certainty
Leadership is primarily about the leader providing certainty to those they are leading.
Therefore, effective leadership involves providing a strong sense of direction with certainty and conviction.
It’s about offering reassurance and a clear path forward, affirming why the chosen route is beneficial not just for the company, it’s also beneficial for everyone involved.
Behavioural aspects of certainty include:
Behavioural aspects of certainty include:
Clarity
Besides being certain, leadership brings clarity on what, why and how people will participate and what it means. This means that everyone on your team understands their roles, the expectations placed upon them, and the reasons behind decisions.
Clarity is crystalising what matters by removing ambiguity. This makes it easier to understand and helps avoid conflict and misunderstandings.
It helps people to align with their intrinsic motivation and reduces the need to push and rely on external motivation.
Behavioural aspects of cLarity include:
"I think the currency of leadership is transparency. You've got to be truthful. I don't think you should be vulnerable every day, but there are moments where you’ve got to share your soul and conscience with people and show them who you are, and not be afraid of it." Howard Schultz, former CEO of Starbucks
Courage
Courage is the ability to move forward and take action even when we are frightened or concerned for our safety or wellbeing.
Courage is not the absence of fear, rather, it is the ability to show up when fear is present.
Exiting is embarking on a journey that is uncertain and new. The outcomes are important, and it is time sensitive.
You embark on this journey with no prior experience so you are vulnerable. You will have to learn quickly and adapt, while others rely on you.
Behavioural aspects of Courage include:
"Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen." Richard Branson
The Impact of Leadership on Business Exits
The 3 Cs of Leadership provide a robust framework for guiding your actions and decisions through the complex process of a business exit.
As you lead your team through this transition, how you apply these principles can significantly influence both the success of the exit and the future well-being of the business and its people.
If you already express these qualities and behaviours in your business, this breakdown will help you consciously prepare for the exit journey.
If you are an owner who has focused on other behaviours throughout your business journey this breakdown may cause you to reflect on what behaviours are going to support your goals the most.
Consider which aspects of the 3 Cs you are already strong in and which you might need to develop further to help you and your team achieve your exit goals. The next step is to work towards adapting and changing the way you lead.
If habit and resistance to change affect your existing behaviours, it’s time to reach out for some guidance and coaching to help you through this.
The quality of your leadership during this transition will not only define the final chapters of your current business journey, it will also set the stage for the future success of the business under new leadership.
How will you harness the power of certainty, clarity, and courage to lead your business through a successful exit and set a lasting example for future leadership?