50 Common Causes of Family Business Conflict ... and how to deal with them

Audio No 33: Family Succession & Continuity.

• This is a big one for conflict! Family succession and associated control of family wealth can be even more confronting than taking over control of the business.

• Loss of family leadership can feel like a loss of relevance and identity.

• Owner has reservations stepping aside, successor is in a hurry to step up.

• Succession should be a process over long time. Plenty of opportunity for tensions to rise.

• Outgoing leaders require financial security, and releases from liabilities. Need to be confident before handing over responsibility for future family stewardship.

• Incoming successors need freedom to stamp their personalities on the family after the changing of the guard.

Solution:

• Create, negotiate and agree a succession plan, over time, through an inclusive process that takes everyone on the same journey.

• Agree attitudes towards Stewardship and Legacy and formalise objectives, expectations and processes.

• Communicate, communicate, communicate to all stakeholders throughout the succession process.

• Recognise the outgoing’s fear of the abyss & respect its reality.

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