Succession planning in family business
Author: Hector
I tend to agree with the comments in that succession is only one of many issues that specifically affect family businesses – they still have to deal with the day to day operational businesses that all businesses have to deal with.
The one thing that I do not agree with is the last comment such that succession problems will only exist after the founder plans to retire. Firstly, many businesses are making the transition from generation to generation many years and in fact many generations after the founder was involved and the whole preparation process for succession can take many years, and is very often a process that is engaged in and only when an appropriate successor has been identified does the plan to step down come into play.
Succession is an emotional issue for the person relinquishing control and can be a real challenge for the next generation but the key thing for anyone entering into a transtionary period/process is for good, open and objective communication with all concerned, clear definition of roles and responsibilities and also a time frame for implementation.
Even then there is no guarantee of success as the current leader still has to step down and cease their day-to-day involvement which, for many of them is not an easy thing to do!