Q: I recently joined a practice as the successor to the firm's owner so that he could scale back over the next few years. We agreed that a succession plan would be in place within three months, and eight months later, he tap-dances around the issue each time I bring it up. I've made positive improvements to the business, yet he is micromanaging in ways that seem both ridiculous and frustrating. Why is the owner skirting our agreement?

-Distressed Successor

A: Dear Distressed:

Many senior advisors are unable to let go and will work against a successor with potentially disastrous results. Why would a senior advisor seek out and retain a successor and then behave in a way that is contrary to the goal of transition? Simple--common sense is often betrayed by human nature.

When advisors discuss succession planning, they tend to focus on valuation formulas and buy/sell agreements, paying little attention to the more personal issues involved. Chances are your senior advisor isn't intentionally withholding the succession plan and equity participation; rather, he is grappling with deeper emotional issues.

When a successor comes into a practice, senior advisors are forced to confront their feelings about getting older, sharing the spotlight and relinquishing responsibility and control. The vast majority of senior advisors don't consciously understand that they're reacting to these feelings nor how to effectively address them.

Here are some of the emotional issues that can create a rocky transition:

The "like me" syndrome. Senior advisors frequently say they want to find someone "like them" to work in the business--highly driven and capable. But they may feel threatened when faced with someone who is as "take-charge" as they are. When such a person comes on board, shows initiative, takes responsibility and helps to drive the business, some senior advisors resent the intrusion into a space they are used to having to themselves. As a result, they may have difficulty giving successors the latitude they need to take over.

Sharing control. You mentioned that you've been making changes and improvements. On some level, your actions may be perceived as an unspoken criticism of the senior advisor's business. While there is room for improvement in every practice, when it's suggested or implemented by the younger generation, it can be perceived as a threat, and he may react by exercising more control. That might explain why you feel that your boss is micro-managing you. A young advisor recently told me that his firm's owner announced that he was in charge of selecting pots and plants for the office. Clearly, the issue was not who should select pots, but who controls the firm.

The need to be needed. Senior advisors are looking for someone who can take over the business so that they can scale back or exit completely. While they may want the business to depend less on them, your changes and contributions may show that they are less needed to run the business. They may equate that with having less value, because their identities are so wrapped up in their business. No senior advisor wants to feel he has become less valuable to his firm. This is sure to make him grip tighter than ever.

BRIDGING THE TRANSITION GAP

Such feelings can stall a firm's transition if the senior advisor has not planned on both a financial and emotional transition. In the worst case, his control issues can drive out his own chosen successor.

I'm consulting with a senior advisor now who turned to me partly because his successor just quit after five years of employment. It quickly became apparent that the owner is of good character and genuinely wanted to transition to the younger advisor. However, he didn't implement the succession plan because he wasn't sure how to go about it. He had more questions than answers when it came to designing a succession plan, partnership track and equity-participation model. The net result was that he delayed the discussions and documentation and assumed his assurances to his successor that he would "someday take over" were enough. Clearly, they were not.

Your boss may be in the same position. You can help him without suggesting that he doesn't know how to do it by nudging him toward the following steps:

• Define the path to ownership. This can be done in a Buy/Sell Agreement, but these days it's increasingly popular to define goals through a partnership track that outlines the hurdles junior advisors must jump to earn partnership in the firm.

• Establish a clear timeline for the transition of ownership, including responsibilities such as management or marketing.

• Break down the transition into three main areas: clients, management and ownership.

• The transition plan should also include mentoring, to pass on important knowledge about the industry, clients and business operations to the next generation.