Family Owned Business

Business Succession

While there are some common threads for most family businesses the challenges are different for businesses that are transitioning from first generation to the second vs. those that have survived few generations. Finding the successor to lead the organization is just one such factor. Building an executive team that will not only manage the present but set the next generation for success is critical part of the continuity. Family dynamics plays a huge role. Loyalty and tenure is valued over competencies and skills to lead into the future.

Planning for Retirement

Lack of planning for life beyond business is major mental barrier for outgoing generation. Work and business is all they know for many years. Finding purpose and joy beyond work is a journey. Finally it is important to discuss the purpose for continuity of your business. Was the purpose of your business to support lifestyle for you and your family members or is there something beyond that? This helps in creating a framework for transition, continuity and growth beyond you.  

Organizational Structure for Succession

For many family owned businesses age gaps between outgoing generations and incoming generations are anywhere from 20 to 30 years. Experience seems to be barrier to transition. However, in our observation it is more than just an experience. Organizational structure, management style which in many cases is authoritarian and highly hierarchical has prevented next generation from growing into leadership role. Smart financial planning, good business growth strategy and building the bench strength of strategic thinkers with good judgment are keys to the success. Environmental changes, fear of the unknown and aversion to risk has stifles leaders from being proactive in planning for continuity and transition. While each situation is unique there are common identifiable threads that run through all these companies.

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