Most family business leaders realize that at some point the business has to transition to the next generation, it could be to their own child / children, niece or nephew, other family members or even to an external resource.
The process of transition can be overwhelming to some but it can be handled well by addressing complex questions like
- What will the business need from a future leader?
- Is that the same or different from what it needs now?
- What training, resources and accountability will the next leader need to be successful?
- What changes might be needed to our ownership structure, policies and governance model to support
- When is the right time to pass on the leadership role?
- Who is presently most qualified to take the business forward
- How will the selection of a leader from among the various contenders be received by the family?
- What do my children expect from the business?
Adequate and suitable preparations can be made well in advance so that family and business can ensure a smooth transition if and when it comes.
Such advance preparation should ensure that
- A better decision about future leadership
- Reduced conflict and family discord regarding the decision and the process
- A smoother transition for management
- Higher employee retention
- Adequate time and resources for the future leader to prepare