Succession of Ownership & Leadership
In past generations, owning a business meant running the business. Today’s options are broader and more complex as many families are blended, mended and extended and as younger generation family members may be more focused on “quality of life.” So, how do you choose the next leader of the business? Can it be more than one? Can it be a non-family member? Do siblings sit in judgment of siblings? What if mom and/or dad aren’t ready to “let go?”
Succession of ownership:
“Someday, this will all be yours.” This is the familiar sentiment from parent to offspring, but the question is “When is ‘someday?’”
The right time to turn over ownership varies for different people and situations. For seniors, “someday” tends to be postponed because of an on-going need for control. In some cases, there is a real or perceived financial need, and for others, there are concerns around fairness and equality. And, for emerging leaders, there are questions of when the transition will occur and how to open the conversation with the older generations.
Transition Consulting Group can help you make a plan about your succession of ownership, from opening the conversation to following through to the end result. They are experts in thorough preparation and strategic planning. TCG knows that each family enterprise is unique, as are the steps to insure a bright future for the business.
Succession of leadership:
With the challenge of addressing the plan for ownership comes the similar challenge of planning for the company’s future leadership.
There are so many questions to be answered. Who will be the company’s next leader? Will it be a family member or someone outside of the family? Should there be a leadership development plan in place? Many members of the senior generation have been so closely connected to the business for so long that the thought of letting go of a leadership role can cause anxiety about their role in the company’s future.
TCG can help you through all of these difficult questions and transitions, as well as any others that may come along. They can help you assess when the next generation will be ready for a leadership position and the steps that need to be taken to prepare them. With the proper preparation, the change in leadership can be smooth and strategic.