I was speaking with a client today about why his succession has worked. He has been running his company for over 50 years and had rightly identified a number of years ago that he would not be here forever. What did he do?
At the time of his self reflection, he realized that he was everything to the company with his sheer willpower and strength of character. Sound familiar? Well, he proceeded on two fronts.
1. He improved his family’s knowledge about the business. At first, he invited them to the annual general meetings and then discussed with them the outcome of the regular board meetings. Soon the family business became a regular topic of conversation, often initiated by the continuous questions from the children, at the family dinner table.
2. On the non-family management side, the business had evolved into two distinct divisions which could operate independently. He made plans to then divide the business into two and then groom the leaders for each of those businesses, who would one day operate the business for the family.
Forward thinking and taking a leap into the unknown. That is what it took for this family succession to succeed.
Learn think apply!