Your succession plan – Which area to address next?

child in the business

The Family Firm Institute – an acknowledged leader in the family business arena is soon holding its annual conference, Transitions West. In the conference, the main topics to be addressed include:

1. Engaging the NextGen in the transition from child to owner
2. Building trust, respect and communications within the family
3. Dealing with thorny family issues
4. The various roles family members play in the family enterprise-and keeping these roles separate and defined.
5. Entrepreneurship, investment and the dynamic-and sustainable-family business

I agree that at this time, a #1 priority for family businesses should be to engage the Next Generation in the business. Who else has a vested interest in continuing the family business and building on its successes? Many businesses have not built the infrastructure internally to facilitate this transition. This could include the documentation of employee manuals, compensation plans, job descriptions, and formal employee reviews. Most importantly, a written (or understood) and clearly communicated family employment policy provides unambiguous guidelines to incoming family members on expectations and compensation. One study showed that only 16% have written requirements for family members who wish to enter the business FFI paper – the link.

Why not start now engaging the Next Generation?

Learn, think, apply!