Is Vacation in Your Plans? (Alese Stroud Expert Advice)

Summer vacation time! It’s here! Great for all the schoolkids. What about those of us who run companies? Will we be enjoying much-needed rest and recreation this summer?

Let’s be clear. Sitting on a beach practicing distance management skills via email does not count as vacation. It counts as vacation only when you completely unplug. Vacations are about being in the moment, enjoying your location, your companions, good food and adventures. Vacations are not about checking your email and catching up on paperwork.

What keeps you from fully committing to a real vacation? Some executives have been plugged into work for so long they don’t know what to do when not constantly checking their email. Others have set themselves up as the ultimate decision-maker in their company. They haven’t empowered anyone to make decisions in their absence. The excuses vary widely. They all boil down to some version of “I would, if I could trust my company to run without me.”

The Federal Deposit Insurance Corp. endorses a vacation policy that encourages officers and employees to be absent from their duties for no less than 14 uninterrupted days each year. The FDIC does not endorse this policy for mental health reasons. It sees it as an internal safeguard against embezzlement. The FDIC takes this recommendation one step further by stating that the job function of the person on vacation must be performed by another employee for the period of the vacation.

As a former consultant to large financial institutions, I understand the criticality of this practice. As a CEO, I see additional value here. Facing a seven-day absence of a co-worker, most teams can get away with shelving the tasks of the absentee, letting them slip until they return. A 14-day absence forces the team to absorb those tasks or the business will begin to suffer. The true test of cross-training and documentation happens when one employee steps in for another. Day-to-day functions of the company are being put at risk when process documentation and cross-training are not regularly reviewed and tested.

Will your company run well if a key executive or employee is absent? A crisis, like a family emergency or a health issue, is not the time to discover flaws in process documentation or cross-training. Proving your company’s resilience by sending an executive on vacation is a wonderful opportunity both for the vacationing executive to fully enjoy some R&R and for the fill-in staff to develop their own skills. Ultimately, building resilience is what it’s all about.

Resilience isn’t only important for vacations or emergencies. It impacts the value of the entire company. If you plan to sell at some point, your potential buyers will want to know the company will run without you. Private equity investors tell us a key part of their due diligence is to find out if the target company will produce steady revenue without its current CEO. When the answer is a clear yes, the company’s value is higher. When the answer is no, the decision on the purchase shifts to “Do we have the resources to fix it?,” which can drastically decrease the value or scare potential buyers away. A company dependent on one person becomes unsellable.

As the vacationer, you earn your uninterrupted vacation by executing these three steps:

• Plan for your own tasks;
• Plan for your direct reports; and
• Plan for those to whom you report.

In each case, identify expected meetings and tasks. Assign coverage for each. Verify the assignee is prepared with process, training and authority. Discuss expectations and possible challenges. Ensure someone is fully able to do what you would normally have done, including making timely decisions. Confirm the assignee has access to the necessary procedures and is trained to execute them. Decision-making processes often lack clarity, resulting in unwanted panicked phone calls to the vacationer. Pay special attention to anticipating the needs of anyone who may think he is entitled to call you on vacation. Planning ahead is key to a successful vacation experience.

If your company has comprehensive procedures and contingency plans, this planning effort will be the natural outcome of existing business-as-usual practices. If not, this will take a bit of prep time. The reward: a fully unplugged vacation. Enjoy!

Alese Stroud is CEO of Corporate Insight Strategy of Little Rock. Email her at AStroud@CIStrategy.com.