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

Audio No 44. Retirement & Other Exits

• Generational transition - “Succession” - is THE major cause of conflict in business families. It always has been, and it’s on the rise as baby boomers retire in increasing numbers.

• “Retirement” means “to put out of use” and it’s a terrifying prospect, highly or formerly active individuals, especially competitive business people.

• Retirement needs to be a process, not an event, planned, managed and implemented over time.

• The tension between up and coming employees, next genners and in place leaders can become intolerable.

• Pressure from all sides - business and family - on a leader who’s not ready to step aside, for many reasons, creates confusion, etc.

Solution

• Plan retirement well in advance to ensure there is a specific retirement date in everybody’s mind and that the outgoing leader is ready, willing and eager to move out, back or aside when the time comes.

• If, as frequently happens these days, the leader does not want to stop working now, or anytime soon, work with them to plan as much involvement in the business as everybody wants, for as long as everyone is willing.

I'm interested in your thoughts and comments below.

#succession #business #conflict