That Dog Don't Hunt Part III

So what is one to do when dealing with family transitions and situations? The first step is realizing that the transition needs to happen. The older generation needs to see that it is part of their role is to turn over the leadership of the company to capable younger leadership. It is important that they face their mortality and aging as a part of life that must be dealt with. A telltale sign of failure is when the older generation does not plan to leave. In fact they may be getting more involved. Consider the following as rules to live by if you want the transition from one generation to another to work and be successful. 

 

1. Design a process for the transition. 
2. For the transition to be successful, the departing CEO’s roles and responsibilities must be taken over by competent others. They can serve as mentors and guides, but their actions and duties need to be fulfilled by others.  
3. Remaining family members who are in the company must be able to run the company. Uninvolved mothers and cousins who suddenly find themselves as CEOs are typically disastrous.  
4. For the new CEO and generation that are taking on leadership roles – take them on. You are now the one accountable for the success of the company and the responsibility is yours. Embrace your new roles.
5. Speak openly about the transition. Discussions between family members are healthy, especially when you disagree. Let this be a process that is definitely talked about and designed.
6. Make the transition while everyone is healthy; before illness and the inevitable.
7. The generation leaving must let go. 
8. Whoever is leaving the company needs to engage in outside interests besides the business. Outside interests are good and they take the transitioning CEO away from the day to day. Seasoned business people are highly needed outside the family business – teach a class, adopt an entrepreneur or go see the whales in Patagonia. The transition works best when the leaving leadership has exciting plans away from the company for the future.  

To be continued...

 

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