The process of choosing the next generation successor(s) is often more difficult in family businesses than their non-family counterparts. This is due to the family component. Applying proven family business succession 'Guiding Principles' customized to the family business will enable the owners and potential successors to effectively deal with the numerous management succession issues such as:
- Timing of management transition (operational control) to the next generation
- Roles and responsibilities of both current owners and potential successors
- Competency assessments and grooming plans for potential successors
- Family Business Meetings (active family members only) - developing the family's Constitution or 'family business rules' as they are often referred to
- Assisting owners with the challenges of "letting go" (The Inability of Letting Go)
- Family Council Meetings (broader family) - keeping the broader family informed of what they can expect from the family business and what the family business can expect from the family
Choosing the wrong successor can be detrimental to both the business and the family. By implementing Family Business Rules and a proper governance structure the management succession process can be completed with minimal conflict and will result in the most competent successor(s) being chosen.