Thinking about a change in leadership can be intimidating, but planning ahead can save your business from turmoil should the unexpected occur.
By Erin Rigik Del Conte, Senior Editor
When preparing next-generation leaders within a convenience store company, the process of transitioning leadership can be challenging at best—especially when it’s a family-owned business. Savvy retailers are planning ahead so that they are prepared when the time comes. Sonja Yates Hubbard, CEO of E-Z Mart convenience stores, with 285 stores in Arkansas, Louisiana, Oklahoma and Texas, has experience on both sides of the equation—in taking over a company from her father and planning for a future leadership changeover.
CSD spoke with Hubbard recently to get her insights on how to prepare for a switch in leadership.
Convenience Store Decisions (CSD): You took over as CEO of E-Z Mart after your father, Jim Yates, died suddenly in 1998. At the time, there wasn’t a complete transition plan in place. What were the challenges of this sudden/unexpected transition and how did the transition play out?
Sonja Hubbard (SH): Without a formal transition plan in place, and to some extent, even if one had been, the biggest challenge was emotional. Myself, family and staff were in shock, mourning and yet had to carry on. It’s hard not to be distracted during times of crisis, but the focus on ‘necessary work’ also helped us focus on the future and others just as we needed to. The business challenges focused around assuring employees, suppliers and creditors that the company would remain an ongoing operation. Then we had to make sure it did.
The transition went well because everyone was committed to the same ultimate goal of perpetuating and growing E-Z Mart. It did take longer and more mistakes were made than if we’d have had a completely thought out and documented transition plan, but then we also learned a lot more along the way that I hope benefits us even today.
CSD: You have called the transition to next-generation leadership “the evolution of influence,” can you elaborate on what you mean?
SH: ‘Evolution of Influence’ was a tongue in cheek term I tossed out to make ‘Transitioning of Leadership’ a less scary and intimidating phrase. It is funny how inherently resistant to change most people are. I guess it is the unknown, which is why planning is important and even necessary.
Evolution is change, a slow and steady adaptation to the environment and hopefully improvement. Leadership is influence. Influence in the form of communicating, inspiring and encouraging people to act; and influence in the form of tactical and strategic business plans and ideas. So, the ‘evolution of influence’ is simply planning for that next phase, that next leader.
CSD: At last year’s National Advisory Group (NAG) conference, you noted there are three ways to transition a company: suddenly/unexpectedly, strategically and a planned transition. What are the differences between the last two models? Do you feel one is more successful or does it depend on the company?
SH: Sudden and unexpected leadership transitioning is pretty self-explanatory and generally indicates little or no transition plan.
Strategic transitioning would imply a plan that has been thought out at a high level with planning given as to the specific qualities and skills needed for future leaders, the organizational structure desired and other components of the broad view for what the next phase of leadership should be to maintain or even transition the company.
Finally, planned transitioning takes that a step further and gets it out of the clouds and into the business. It is an actionable plan of the developed strategy that names individuals or positions to fill specific roles during this transition. This plan should also be open, shared and communicated to the extent it makes good business sense.
If the individuals expected to move into new roles are not prepared both professionally and mentally or employees are not ready to embrace the change then the shock of the unknown could be the equivalent of an ‘unexpected transition.’ Effective leadership transition plans should ‘planned.’
CSD: How are you preparing for the next transition in leadership when you eventually retire as CEO?
SH: We are at a place between ‘strategic’ and ‘planned’ with differing plans for a crisis or more unplanned departure than there would be down the road under a retirement scenario. We have do have a ‘planned transition’ action plan that would effect change in the near future and are more at the ‘strategic’ phase for the future with ongoing discussions.
CSD: What advice do you have for other retailers on planning ahead for a leadership transition to the next generation?
SH: Do it. Planning for our own departure isn’t something we like to think about but that transition is inevitable and for most leaders actually hard earned.
Time spent planning also seems to get in the way of real day to day work and operations, but the reality is that it could be one of the best investments made for your convenience store business’ future. It could mean that the company not just survives, but thrives with the next generation and beyond.