When generational transitions in family business do not occur strategically, they can destructively impact the company as well destroy familial relations. This is called a double whammy.
Alternatively transitions between generations in a family owned company can work really well. Here is an example. Steve was a gracious CEO and leader. A couple years ago, he formally retired and turned over the company to his competent son. Steve still comes to work. He is punctually in at seven and out at eleven. On a typical day, he enters the building, says hi to everyone and they engage with him in a friendly way. Then he goes off to his office where it appears that he moves one pile of papers to another pile of papers. No one is quite sure what he is doing and that’s fine. Steve’s son continues to run the company. Steve and his Son see each other daily and on occasion have lunch. The company continues to thrive. This transition works.
Another example of a successful transition; George, a former CEO and leader, lets his son and stepsons run the company, which they do well. George takes on some projects with key employees. The key employees love working with George as he knows a lot. At 73 year George is focused yet fun to work with. His involvement totally works. He provides guidance and knowledge in a very productive way.
Then there is Susan. She inherited a very successful company when her husband passed away. At age 65 she told her two sons, “I am out of here in two years so you two better get your act together because I am leaving.” Susan had plans and a life to live. She was involved with a ministry in Africa, worked actively to educated inner city youth and aspired to coach female executives. The two year deadline drove the transition to be conducted in a positive and productive fashion. In two years Susan was able to move on. The company continues to be successful.
To be continued next week...
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