By: Jamie Davis, CVPM
When thinking about effectively passing the torch, my mind goes straight to Snoop Dogg in the 2024 Olympics. His joy and ease with the process was intoxicating. I couldn’t look away and definitely couldn’t stop smiling. Now, take that and imagine a succession plan in your hospital going the same way. Succession planning is often viewed as a retirement strategy, but in veterinary medicine, it’s much more than that. It’s about ensuring continuity of care, preserving practice culture, and preparing both people and processes for inevitable transitions. This can be due to any leadership shift, like retirement, relocation, or acquisition.
The Why
Veterinary practices are a deeply personal business. Clients build trust with their veterinary medical providers and that trust thrives in environments where leadership is stable and values are clear. Without a succession plan, the departure of a key leader can disrupt operations, sabotage culture and good team morale and even compromise patient care.
The characteristics of a quality succession plan include continuity of leadership and patient care, staff retention efforts, intentional focus on transition of ownership and/or leadership and preservation of the practice identity and values.
Laying the Foundation
Some of the most sustained organizations focus on thinking ahead. The Boy Scout motto says it pretty direct and simple “Be Prepared”. And what about Benjamin Franklin saying - “If you fail to plan, you are planning to fail.” Both of these quotes, and many more, point out the fact that we should always be thinking about what hasn’t happened yet. Doing things to prepare, even before we feel we are ready, is going to make for a smoother, less stressful transition for all.
Effective succession planning starts with identifying future leaders within your team. Who is ‘ready now’ and who is ‘ready later’. Identifying strengths with strengths-based coaching and self-evaluations that allow for team to identify their strengths, weaknesses, opportunities and threats (SWOT) to put the wheels in motion. It is important to approach team development with intention. Sending someone to a leadership seminar or reading a leadership book, while helpful, is not going to prepare them for leadership by itself. Written goals and plans, like setting SMART (Specific, Measurable, Attainable, Realistic, Timebound) goals and engaging in mentorship programs will allow a pattern of progressing team development. One of the keys to team retention.
Ownership Transitions
Whether selling to a private buyer or a corporate group, the transition of ownership requires careful planning. Each buyer type brings different expectations and impacts:
- Private Buyers often prioritize maintaining the existing culture and client relationships. They may be more flexible but require mentorship and support.
- Corporate Buyers bring resources and scalability but may shift operational priorities and team dynamics.
Once again, the name of the game is preparation! Consistent tracking of hospital metrics will ensure that you have the information you need in order to know if your clinic is in a good place for transition and will offer the financial return you want. By creating this visibility, you may institute changes early that will help improve performance metrics. Significant financial shifts in a practice can take years, not months.
Keys to Success
Developing the following habits will contribute to sustained success and work with a plan to get you on the path of being prepared for transition, whenever that might be.
- Monthly monitoring of clinic performance metrics
- Record keeping is up to date and organized, including clinic assets.
- Financial documents are generated and reviewed monthly. Including profit and loss statements, balance sheets and payroll reports.
- Evaluate culture, including core values alignment and team engagement quarterly
- Have a leadership program for staff allowing for personal and professional development.
- Clarify real estate plane (sale or lease)
- Have key operational relationships established, including accountant, financial advisor and attorney services.
- Prepare a transition timeline
Communication is Key
Transparent communication is critical. Involving your team with strategic planning so they know current and future goals, and provide feedback, will lead to a stronger culture, higher team engagement, and hospital productivity. Ownership transition should never be a surprise; it should be a planned event. This level of transparency builds trust.
Succession doesn’t end with the handover. Continued involvement from the outgoing owner, whether as a mentor, advisor, or part-time practitioner, can ease the transition and reinforce stability. Regular check-ins and feedback loops help identify and resolve issues early.
Conclusion
Succession planning is a strategic investment in your practice’s future that requires preparation and planning from the start. It’s about more than exit, it’s about legacy. Developing leaders, keeping good records with regular metric tracking, planning as a team, and communicating clearly, will allow your practices to thrive through the many changes that occur in the life of a practice. Remember, pass the torch like Snoop, with joy and confidence!
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