Passing a business from one generation to the next is not just about ownership papers. It is about preparing leaders, updating systems, and keeping the company both steady and forward-looking. This is the heart of succession planning.
Barrett Young understands this challenge well. He is a partner at GWCPA, an 80-year-old multi-generational firm, and the ninth partner in succession. He serves as both tax partner and marketing partner and will take over as managing partner when Sam retires in six years.
Barrett is guiding the firm through major changes, including adopting the Entrepreneurial Operating System to align goals and strengthen leadership.
He has earned the Certified Valuation Analyst credential and is now pursuing the Certified Exit Planning Advisor designation. At the same time, he is leading projects like accounting system conversions, subscription-based pricing, and tools such as the Ownership Readiness Scorecard.
In this episode, we will see why combining innovation with longevity creates stronger companies. We will explore how early preparation, leadership training, system updates, and human qualities ensure smooth transitions and lasting value.
Why Innovation Must Be Paired with Longevity in Succession Planning
Passing a business to the next generation is not only about ownership. The real test is whether the company can stay relevant while keeping its roots strong. Longevity without change often leads to decline. Innovation without stability creates a business that may shine quickly but cannot last.
The right approach is to bring both together. A company must honor its legacy while also adapting to new demands. This way, future leaders do not just inherit a business. They inherit the chance to grow it further.
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Preparing Early for Transition
Succession should start years before leadership shifts. When companies prepare early, they set themselves up for success. Three areas matter most:
Leadership development: Train and mentor future leaders before they step in. Early support builds skill and confidence.
System updates: Refresh old processes so the business runs smoothly during and after the change.
Tax and legal readiness: Handle these issues well in advance to avoid stress and protect company value.
The Role of EOS
The Entrepreneurial Operating System (EOS) helps companies bring order to this process. It gives leaders clear roles and holds them accountable.
It also connects daily work to long-term goals. With EOS, everyone moves in the same direction, which prevents confusion when a handover happens.
Building a Lasting Legacy
Succession is not a single event. It is an ongoing journey that shapes the future of the company. Businesses that combine innovation with stability keep their legacy alive and create growth space. This balance ensures the next generation can lead with strength and purpose.
What Real Passion Means in Succession Planning?
Many people think passion means enjoying every task each day. In truth, passion is about commitment. It is the drive to keep working even when the job feels hard. Real passion shows when you still show up and give your best, not just when work feels exciting.
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Why Skills Come First
Chasing passion alone often leaves people frustrated. A better way is to focus on building skills. Skills give you choices and more control over your career. When you are skilled, you can decide:
What kind of work do you accept
Who you want to serve
How you manage your time
This control creates satisfaction. Over time, passion grows from being good at what you do, not from chasing a feeling.
Beyond Transactions
Work that is only repetitive can drain energy. In areas like accounting, processing tax returns without real client contact often leads to burnout.
The deeper value comes when professionals move beyond one-off tasks. Supporting clients year-round, guiding decisions, and helping businesses grow make the work meaningful.
The Future of Work
Technology will handle more routine jobs. AI will prepare returns, manage books, and even suggest plans. What people will still value are human qualities such as:
Empathy to understand real needs
Accountability to keep promises
Empowerment to build confidence
Foresight to plan for what lies ahead
Creating Lasting Value
In the future, clients will not pay just for basic compliance. They will seek advisors who bring insight and support. Just as banks shifted from cash tellers to personal advisors, many fields must now shift to trusted guidance. Real passion comes from providing lasting value, even during tough seasons.
How the CPA Profession Is Changing the Succession Planning
The role of CPAs is changing quickly as technology takes over routine work. AI will soon handle tax returns, bookkeeping, and even tax planning.
This means businesses will not hire accountants just to prepare forms. Instead, they will seek advisors who can guide them through complex choices and long-term goals.
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The Human Value
In the future, clients will pay for qualities such as empathy, accountability, empowerment, and foresight. These are the skills that set people apart from machines. They help build trust and make difficult decisions easier.
Firms will also need new ways to charge for their work. Many will shift from hourly billing to subscription models that reflect ongoing advice and support.
Building Stronger Services
Adapting to this change requires new skills and stronger structures. Firms are:
Bringing in leaders to focus on tax, financial statements, and strategy
Adding valuation expertise to help owners understand and grow business value
Using exit planning frameworks to support long-term transitions
These changes allow firms to move beyond compliance. They give owners practical insight into where their business stands today and what steps will increase its value in the future.
Practical Tools for Owners
Firms are also creating tools that make succession planning easier. An Ownership Readiness Scorecard helps potential successors check their strengths and gaps before taking over.
A Succession Readiness Survey gives owners a score they can track over time and compare with peers. These tools turn uncertainty into clear steps for improvement.
Looking Ahead
The CPA profession is not disappearing, but its focus is shifting. Routine work will fade into the background as AI takes over.
What will remain valuable is human guidance, foresight, and ongoing support. Businesses that embrace this change will gain trusted advisors who help them grow confidently.
How Future Leaders Can Prepare for Succession Planning
Taking ownership of a business goes far beyond knowing the technical side of the work. It requires the ability to read financials, lead people, and make difficult choices when outcomes are uncertain.
Many employees never picture themselves as future owners, but the right tools can help them see what is possible.
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Why Self-Assessment Helps
A self-assessment is a practical way to measure readiness. It asks direct questions such as:
Do you understand how the company’s finances work?
Are you prepared to handle conflict inside the business?
Can you make decisions without having all the answers?
These questions highlight strengths and point to areas that need more focus. They also encourage meaningful conversations with current owners. Showing initiative in this way builds trust and demonstrates commitment to growth.
Using the Results
Scores should guide action, not discourage progress. A result that looks average may still signal strong potential. The key is to use feedback to improve.
Successors grow more confident over time by talking regularly with current leadership and addressing weaker areas. The goal is steady progress, not perfection.
Building the Business at the Same Time
Preparing new leaders also means preparing the business itself. Projects such as upgrading accounting systems, moving to cloud-based management tools, or adjusting pricing models create stronger foundations. These improvements ensure the company stays efficient and ready for the future.
The Real Meaning of Readiness
True readiness combines self-awareness, skill growth, and solid systems. A self-assessment highlights where to start, while guidance from experienced leaders fills the gaps.
With consistent effort and stronger structures, future leaders can take ownership with confidence and continue the company’s success.
Conclusion
Succession planning is not a single step but a steady process that shapes the future of a business. Companies that plan early and prepare well give their next leaders the chance to succeed with confidence.
They also protect the hard work that has been built over many years. A strong plan combines skilled leaders, updated systems, and clear long-term goals. When future owners build skills and learn from current leaders, they step into their roles with clarity.
When companies refresh systems and processes, the transition runs smoothly. And when tax and legal issues are addressed early, value is preserved and stress is reduced. At the same time, leaders must remember that people will always matter more than tasks.
Technology may handle routine jobs, but qualities like empathy, foresight, and accountability build trust. These qualities guide decisions that keep a company stable and growing. The goal is to pass on a business and create lasting value.
A well-prepared company continues to serve clients, support employees, and contribute to the community. By pairing innovation with stability, leaders ensure that the next generation inherits strength and opportunity. That is how succession planning secures both legacy and growth.
FAQs
Why is communication important in succession planning?
Clear communication avoids confusion and builds trust. It helps everyone understand goals and reduces fear about change.
How often should succession planning be reviewed?
Plans should be reviewed at least once a year. Regular updates keep them relevant to changing business needs.
What role do employees play in succession planning?
Employees provide continuity and knowledge. Involving them early creates buy-in and smoother leadership shifts.
How can small businesses benefit from succession planning?
Small firms protect both value and jobs. A simple plan ensures smooth ownership transfer without disruption.
What financial tools support succession planning?
Insurance, buy-sell agreements, and retirement savings are common tools. They secure stability during leadership changes.
