Succession planning is a means to protect what the founder has worked so hard to build and a great opportunity to maximize business potential by creating a multi-generational institution that embodies the family’s values and mission for generations to come.
Many family businesses look at succession planning as an event when the founder finally hands over the reins of the family business to his/her next generation. However, succession planning is not a one-time event, but a continuous process that includes critical decisions, careful planning and preparation in order to successfully transition ownership, leadership and management of the business and the family’s assets to successive generations.
Succession planning intersects family considerations, which involve emotions and feelings, and business considerations, which are typically driven by merit and economics. This juxtaposition of family sentiments and business concerns can make succession an especially complex topic.
We help our clients develop a written succession plan that chalks out a roadmap to manage succession from one generation to another and/or deal with sudden and unexpected family and business developments. This includes:
- Setting expectations, philosophy, and values upfront
- Independently assessing what’s right for the business
- Defining a clear and objective leadership selection process
- Understanding individual and collective talents, aspirations and analyzing their potential
- Assessing the next gen family leaders with the objective of identifying fitting roles for the family members
- Developing the successor’s capabilities to fully realise their potential
- Finding creative ways to balance business needs and family aspirations
- Building credibility through a phased transition
- Preparing the retiring leaders to take up an advisory role