Is your exit strategy is “done and gone”? It’s not wrong or right. Done and gone has benefits, and it has costs. It’s easy to see the benefits to the done and gone strategy: money in the bank. Relief from management and ownership responsibilities. Padding retirement funds. More available time. Liberation — it’s finished, over, ended, done.
But there are hidden costs associated with the done and gone strategy — the biggest of which is retention. The “bleeding” is worse with turnover, constrained growth, a culture of indifference, an attitude of “its only about the money,” and lack of visionary leadership.
If the strategy is leave a legacy, that’s a very different animal. If the strategy is about done and gone, then it’s only about the right price and the right conditions to leave without losing too much. But when the exit strategy is about legacy, it’s also about generating a group practice that is authentically committed to leaving behind an inheritance to others.
What Does Your Strategy Say About You?
The done and gone strategy is about you. It is self-centered. The legacy strategy is about others — your associates, employees, patients, and executives. Most important in the leave a legacy strategy is selecting the right successor, which is not always the person with the most cash in hand.
When the existing strategy is done and gone, it’s all about the highest bidder. If the strategy is to leave a legacy, it’s about finding and developing the people so the practice is able to deliver on its promises.
When the existing strategy is done and gone, inherent in the culture is selfishness. “What can I sell it for? How much can I get? The new owners will figure it out, and they’ll be responsible, not me.” Self-interest leaks heavily out into the culture.
When the strategy is to leave a legacy, intrinsic in the culture is altruism — doing good, making a difference, selflessness. The focus is more about humanity than about an individual. The tone is more philanthropic than self-seeking. My findings are that cultures in which leaving a legacy is the goal, there is greater compassion, communication, and commitment.
Numbers vs. Legacy
From an owner’s perspective, when there is a commitment to done and gone, the owner has a commercial relationship with the enterprise. Numbers rule the game — “Get the enterprise to its highest multiple, no matter what!” It becomes about the numbers, at the expense of the people and the patients. It’s about the highest bidder, not the best person to continue the success of the company.
From an owner’s perspective, when there is a commitment to leave a legacy, the owner has a parental relationship to the company. They want the company to attain, grow, and continue to strive for the very highest level of growth and success. There is an ongoing investment in building and developing people and systems, where the people and the systems deliver and continually improve. They want their successor to step into a winning team with operations that work. They want to nurture their people and give them the mindset that their lives and their work make a difference, personally and professionally.
My findings over the years are those managed-group practices that are legacy driven have substantially higher rates of retention and stronger work performance. When people feel they are working for a higher purpose and for someone who truly cares, they stay.
— Marc
