Authored by FBCG, The Family Business Consulting Group
Succession is the most painful and critical time for family businesses. Less than one-third of family businesses survive into the second generation, and only about 13 percent make it into the third generation.
How do the successful ones make it? After working with hundreds of family businesses, The Family Business Consulting Group offers 15 guidelines that we hope will help you during the succession process.
15 Guidelines for Succession
- Succession is a process – not an event.
- Present the business as an option – not an obligation.
- Get outside experience.
- Hire into an existing job.
- Encourage the development of complementary skills.
- Teach the foundations.
- Start with mentors.
- Designate an area of responsibility.
- Develop a rationale.
- Recognize that you are not alone.
- Have family meetings.
- Plan, plan, plan.
- Create an advisory board.
- Set a date.
- Let go.
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John L. Ward is the Professor of Family Enterprise, Kellogg School of Management and the Co-Founder of The Family Business Consulting Group, Inc. He can be reached at ward@thefbcg.com or 847-475-3000.
Stephen L. McClure, Ph.D., is a principal with The Family Business Consulting Group, Inc., and can be reached at mcclure@thefbcg.com or 208.342.7775.
