Transitioning to the next group of leaders is a significant milestone. It’s also when it’s crucial to begin family business succession planning. Unfortunately, not every firm has a roadmap in place to guide them. Installing a new leadership team can sometimes feel like a hostile takeover.
Rather than try and mimic the current group, it’s best to look further. Here are a few factors that Positively People can help you focus on to improve your family business.
Don’t Rehash the Past
Every firm claims that they favor innovation and new ideas, but sometimes their idea of family business succession is to copy the founder’s vision. Deep-seated corporate values are important, but so is continued brand growth. It’s counter-intuitive to repeat what the company has already done while expecting new results.
Rather than searching for a clone of the current leader, ask what the future needs. Start defining what the vision should look like after they take over.
How Involved are Family Governance Councils?
When a family council is tied to the company, they may not share similar visions. Other brands rarely feature such roles other than them offering guidance. How involved they are in choosing new leaders drastically impacts continuity planning. Some families refuse to seek the assistance of third parties, ending with questionable results.
Traditions are important, but so is finding the right set of skills and experience. Contact us for family business consulting with an experienced group of agents.
Don’t Only Promote In-House
We would all like to hand our company to our next of kin, but nepotism can only get your firm so far without the necessary skills.
Many established corporations seek out leaders from outside of the organization. While contradictory to the family side, it can elevate the entire brand. Sometimes, our relatives simply don’t have what the company needs to grow. Meet with our family business advisory team to start your leadership search.
Choose “Stewards” and Not Just “Leaders”
Companies often choose CEOs of other brands, but doing so can backfire. That usually occurs when the director loses sight of their vision. Anyone can become a leader, but not all leaders are great stewards. Instead, focus on the candidates that can offer your firm the best direction.
It’s challenging to balance new possibilities without sacrificing all your traditions. Contact us to start your search for the next generation of your firm.
Who’s Ego Will Ultimately Win?
Another pitfall for many firms is balancing the egos of new leaders and old directors. Those who are on the outside feel restrained, while the established members feel threatened. In the end, it should be the brand that receives the most focus. Even if the company’s vision changes, the people behind it shouldn’t.
Don’t allow egos to prevent you from making the best decisions possible. Reach out to our advisors today to reinvest in your family’s firm. We have assisted many brands in making significant changes easier. Discover what the agents at Positively People can offer your family business. Learn more about Positively People services.