For too many families in business, the easiest approach to
succession planning is avoidance: do nothing. However, ignoring the inevitable doesn’t make it go
away. Ready or not, the time for
succession will come.
What makes planning for succession so difficult for so many
business families? Reasons families do nothing run the gamut: the senior
generation fears letting go; the business is going well and it is too much fun
to let go; the business is struggling and the senior generation feels like they
have to get it back on track; the senior generation’s belief that the rising
generation is not ready or not interested; the senior generation’s indecision
in choosing the next leader; the family wants to avoid difficult or awkward
conversations; psychological and emotional connections to an identity connected
to leading the family business.
Avoidance, or doing nothing, can seem like the easiest
option, but is only going to make things more difficult in the future (and
probably frustrate the rising generation in the process). Preparing for any change in season
takes planning, and preparing for succession is no different. A family business should prepare for
the change of the family’s season by taking steps now to prepare:
1. As a family, commit to
building the family legacy and the business legacy.
2. Use the workbook: 20 Questions PracticalChecklists For Business Families as a conversation
starter for all family members.
3. Draft a written plan,
along with a timeline, for the transitions to the rising generation.
4. Prepare development
plans for the rising generation that provide opportunities to learn about the
values and vision of the family and that provide opportunities to learn about
the rights and responsibilities of being an owner of the business.
Honestly discussing the critical issues facing families and
family businesses in transition helps foster the objectivity and focus needed
for long-term success.
Successfully navigating the transition of leadership can often be the
key piece in solidifying the opportunity to create a multi-generational family
business legacy.
A professional family business advisor can help the family
and the business function with discipline and forethought to ensure
sustainability for future generations. The family business advisor can help the
family achieve family goals by helping to establish the framework, boundaries, training,
help with talent development, and reflective planning for the future.
It’s not too late to get started. Doing nothing is not really an option.
