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

Audio No 32: Business Succession & Continuity.

• This is the big one for conflict! Business leadership succession, and a perceived transfer of associated family leadership, can be enormously confronting, especially to leaders and driven entrepreneurs.

• The outgoing leader has reservations about stepping aside, while the incoming successor is in a hurry to take over.

• Succession should be a process over a long time, rather than an event. Tensions can rise.

• Outgoing leaders require financial security and releases from liability.

• Incoming successors need freedom to stamp their personalities on the business - this can be a dangerous time.

• Changes in staffing, including old retainers and advisers, are common, with a consequent loss of corporate knowledge and wisdom.

Solution:

• Create, negotiate and agree a business succession plan, over time, as part of the business strategy plan. Use an inclusive process to bring everyone on board.

• Communicate to all stakeholders throughout the succession process.

• Recognise the outgoing leader’s fear and encourage them to accept a sponsoring role throughout the process.

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