100 Year Company Blog
I often talk to new clients about three fears that govern the actions of business owners everywhere. The fears are:
- Loss of Wealth
- Loss of Control
- Family Conflict
These fears are largely intertwined but any one can be an over-riding factor that stops business leaders and their relatives from working on a transition plan. The process of addressing each of these concerns actually helps a family prepare and agree upon the process of transition.
Every November I give special thought to my parents. Both, in their own way, fought the Nazis in the Second World War; my father as a bomber pilot in the Royal Air Force, my mother as a teenager in Nazi-occupied Norway.
One by one they came over to me and shook my hand.
Dad was in his eighties, Mom was mid-seventies, two sons and two daughters in their forties and fifties.
They had just completed their first family meeting and as they thanked me they each wondered why it had taken so long.
Succession planning is not about retirement, it’s about commitment and preparedness for the future.
Through development of a plan family members are given the tools to help identify what they want and how to align the wants of each family member.
There are two fundamental parts to a succession plan:
Strategic plan: where do we want to take this company and what resources will we need?
Transition plan: when do we want to start bringing the next generation to an executive role?
what training will they need?