Listen to Philippe de Gaspe Beaubien II, John A. Davis and Paul Darley explain the importance of succession planning in a family business. It is important, in a family business, that a succession plan is an ongoing process that is prepared without the trigger of an unforeseen event. A clear succession plan will ease the transition of the family business from one generation to the next.
Philippe de Gaspe Beaubien II
The succession is not an event, it’s a process. And one of the big challenges is preparing the next generation to take on the responsibilities that come with the ownership and the business that they inherit, so one of the challenges is the next generation. Another one is the elders, the older generation, who start the business. They like being busy there, and they like to control things, like myself, and learning to let go learning to bring in other people, learning to prepare to go to another career is a big challenge that family business face.
John A. Davis
You need, in a management group, and in a family business, more interaction and more partnering going on between senior and junior generations now. Junior generation members are kept in a too-dependent position for too long in most of the families that I know.
If another family approached us for advice on succession, I would suggest to them that they involve as many people as possible in the process. Both family members, advisors, attorneys, there’s all sorts of family business organizations out there. But really go out there and don’t make quick decisions, don’t be afraid to do something radically different, and be unique.