Succession Mindset and Strategies
I love looking at the history of family businesses, and the great stories of their founding entrepreneurs seeking opportunity. But the sad truth is that when we think about family businesses and succession, words like conflict, feud, nepotism, and failure come to mind, rather than opportunity, vision, growth, and wealth creation. Why is it so hard to have positive entrepreneurial thoughts about succession? Succession can be a great time to think about new businesses, new products, new markets, or new opportunities. Let me suggest a few changes in the succession mindset and strategies to help you move toward the new:
First, succession discussions should focus on the business and the family as a platform and pool of resources for new opportunities. Business owners need to talk about succession as a plan and strategy for creating new streams of wealth.
Second, think about succession as a change process for the whole organization in deciding which roles people will play, building new teams, planning for the future, and professionalizing structures and processes. Don't think about picking a single person as the successor. Not only will there be conflicts, emphasizing on a single successor will also make the organization egocentric and internally focused.
Third, succession should be a family conversation, not a senior generation decision. Succession is a business issue, not a retirement or death issue. The family should have regular family meetings at which the future health of the business is openly discussed. Secrecy, silence, and self-absorption need to be banned from the succession process.
Fourth, realize that tension and conflict surrounding succession are normal and healthy, not an indication that things are going to blow up. Succession is a very complex, emotional and scary process. Acknowledge that, and manage the process by addressing these issues openly, not by creating a conspiracy of silence. A facilitator may be able to help ensure that the bold, opportunistic spirit that started your business is part of your succession planning, too.
Posted by Timothy Habbershon on June 12, 2008 14:31
