Successful Succession

Succession-the transition from one generation to the next-is the greatest challenge that family businesses face. Long-standing businesses grapple with succession again and again.

There are three fundamental components to successful succession. Consider these, and identify where your family should focus its time in order to achieve greatest success:

• Leadership
• Ownership
• Relationships

We've listed a dozen questions, four for each fundamental. Why not choose one fundamental as the focus of your next family meeting, and discuss the questions listed below?

Leadership

1. What skills, talents and experience does the business need in order to thrive in the next 20 years?
2. What strategies or structures will provide the greatest opportunities for the next generation?
3. What will make employees and customers say "wow" about the next leader?
4. What will senior-generation leaders choose, as their next careers?

Ownership

1. How will future ownership structure assist the management and decision making of your family business?
2. What will ensure that the wealth, which you've worked so hard to build, will be preserved?
3. What investment practices will free the senior generation from dependence on the success of the younger generation?
4. How will the community at large benefit because your business remains family owned?

Relationships

1. Do you create time for family matters as a high priority?
2. Are you willing to raise sensitive issues?
3. Is there one sure-fire conflict-resolution tool ready when you need it?
4. Are regularly-scheduled family meetings part of your calendar?