Transitioning Doesn’t Have to Mean Vanishing

You AE company owners are a lucky bunch. Just about every one of you with whom I’ve had the opportunity to work over the years can’t seem to get enough. You love being the glue, the compass, the rock. You love making a difference—the difference. So it stands to reason that the idea of stepping away from your business can be fraught with mixed emotions. You’ve built careers—and in many cases, entire firms—on your expertise, leadership, and vision. The company has often been more than a job; it’s been a second home, a laboratory for innovation, and a stage for professional accomplishment. When the twilight of your career approaches, many of you will face a dilemma: How can you remain involved in ways that are both meaningful and productive while also enabling the next generation of leaders?

Stepping back without stepping out

For many of you, the thought of playing endless rounds of golf or diving headlong into leisure feels hollow. “I love what I do” is a common refrain and rightly so. Work in the AE industry often fuels passion, gives purpose, and provides the opportunity to make a better world. The challenge, then, is finding a balance between being useful and being the focal point.

This balancing act can look different depending on whether the transition is internal—handing the reins to existing leaders—or external—such as acquisition or recapitalization. Both scenarios present distinct opportunities and challenges that require thoughtful navigation.

Internal transitions—think marathon, not sprint

Internal transitions are often the dream scenario for firm owners who want to see their legacy carried on by trusted, homegrown leaders. But they also come with their own complexities. You must relinquish control in a way that doesn’t undermine the confidence or authority of your successors while ensuring the firm maintains a healthy trajectory.

What you can do:
  1. Mentor without micromanaging. Becoming a mentor allows you to impart your wisdom while giving new leaders the space to make their own decisions—and, yes, their own mistakes. The key is to be available as a sounding board without swooping in to take over. Schedule regular check-ins to discuss strategy or key challenges, but let successors lead these conversations to signal that the baton has truly been passed.
  2. Champion big-picture thinking. Owners who are winding down are perfectly positioned to work on long-term initiatives such as strategic planning, thought leadership, or client relationships. These high-value contributions don’t interfere with day-to-day operations.
  3. Take on a new role. Consider stepping into a defined role such as board chair or strategic advisor. It will create a formal framework for your involvement, making it easier for others to know when (and how) to lean on you. Just make sure to avoid undermining the CEO and the leadership team. Your role should complement—not compete with—their responsibilities.
Avoid these pitfalls:
  1. Hovering. Staying too close to the action can unintentionally signal a lack of confidence in new leaders. Resist the urge to offer unsolicited advice on minor matters.
  2. Failing to let go of clients. While maintaining some key relationships is fine, your job is to ensure successors have the opportunity to establish their own rapport with clients.

Navigate an internal transition effectively and enjoy watching your protégés flourish. The firm remains intact, the culture is preserved, and you can still contribute in ways that matter to you.

External transitions—sell the firm without selling its soul

External transitions may be more transactional but are no less personal. They typically involve bringing in new ownership and new cultural dynamics.

What you can do:
  1. Set non-financial terms. You care deeply about your firm’s future, so seek buyers or partners who align with your values. Whether it’s ensuring staff are taken care of, maintaining a commitment to certain markets, or preserving the firm’s commitment to its communities, insist on clarity around these terms.
  2. Serve as transitional ambassador. A buyer will benefit from you staying on for a period of time to ease the handover of key relationships, institutional knowledge, and processes. Just clearly define the scope and duration of this role up front to avoid ambiguity or overextending your involvement.
  3. Become a change agent. Post-sale, use your credibility to encourage staff buy-in for new initiatives or systems introduced by the acquiring firm. Your support can help bridge cultural divides and ensure smoother integration.
Avoid these pitfalls:
  1. Overstaying your welcome. A key difference in an external transition is that new owners or leadership must ultimately steer the firm. Staying too long can delay necessary changes.
  2. Letting sentiment cloud judgment. Selling a firm is emotional, but you have to focus on finding the best fit for the firm’s future—not just clinging to past practices.

An external sale can bring financial freedom and peace of mind. If the right buyer is chosen, it can also lead to exciting new opportunities for the firm’s growth and evolution.

Building without stifling

Whether you opt for an internal or external transition, the biggest challenge is often the same: staying involved in ways that build the firm without overshadowing or undermining those tasked with leading it forward.

Key principles for both scenarios:
  1. Prioritize legacy over ego. Letting go of control is easier when you shift your focus to creating a sustainable legacy rather than maintaining personal influence. The best leaders leave their firms stronger than they found them.
  2. Build emotional agility. Transitioning out of a leadership role requires emotional work. Reconcile your love for the business with the reality that others may take it in new directions.
  3. Embrace lifelong learning. Stepping back from day-to-day operations is an opportunity to explore new interests or deepen your expertise in areas you’ve always been passionate about. Some go on to write books, teach, or consult in ways that make use of your unique experiences.

You’re not done

If you’re facing transition, remember this: Your journey isn’t over; it’s simply entering a new phase. The contributions you can make—be it through mentorship, strategic vision, or industry advocacy—can be as profound and rewarding as the hands-on leadership you’ve provided. The key is to step back with intention, leaving space for others to rise while finding new ways to channel your passion. So, march on and design the next chapter of your legacy.

Call or text Mark Goodale at 508.254.3914 or email [email protected].

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