Wow, what an uplifting outcome.
I just came out of a meeting this week with a family who are in the process of successfully transitioning from G1 to G2 (generation 1 to generation 2).  This successful endeavour has been a 3 year journey culminating in:

– a plan of reorganization to allow the following generation’s active [in the business] child to transition and take over the day to day management of the business
– set compensation for the child in the business with full transparency around this compensation vis a vis the other siblings
– allow input going forward from all family members, including non-active family, in a constructive and safe setting (family business council)
– have all active and non-active family members continue to be owners of the business

Even after implementation, this plan will take 5 to 7 years to reach its planned end and the family knows this.  The insight that arose from this meeting was that only about 1 in 3 businesses, which may be an optimistic stat, successfully make plans and begin the conversation around a succession plan, let alone implement a succession plan.

Fortunately in this family both the parents are healthy and the children are all healthy.  More importantly, they are speaking with each other and get along, both inside and outside of the business.  To get here, the discussions were not without some challenges, even a little acrimony.  However, with constructive facilitation, we were able to get through these bumps.

We have time and we have a plan…because the family started the process early.

Some families with businesses wait until it is too late.  Nothing like being in the hospital or have some serious health issue hit the businesses’ key person(s) unexpectedly.  This can and does happen…quite regularly.

What jolt do you need to take some action?  Look around you.  Take a moment out of your business to talk to other business people who may be in a similar circumstance.  What are they doing?  There are plenty of organizations locally that have like minded people as you with whom you can share your thoughts, issues and concerns in and around succession.

Hope this note has provided you some food for thought to take action….today?

Learn, think, apply.