Succession of a business can take a long time, sometimes 5-20 years, possibly a lifetime. I am in the midst of succession planning discussions with one family that is now into its 3rd year, having made significant headway on communications and setting ground rules. Another family has been working on succession for 7 years and we are just starting to discuss a shareholders’ agreement, which to them was a new concept, especially amongst family members.
Why do I give these examples? Because these are illustrative of how long a properly implemented (from my point of view) succession plan can take. Each family is making sure that a proper foundation of understanding between family members at the current generation is accomplished before bringing in the next generation in an active way, and most importantly having meaningful conversations along the way.
So why the title “Enjoy the journey?” The end goal of succession is of course an orderly transition of ownership and management of the business and enterprise between generations. However, before this goal is met can be many “mini-goals”, which should also be celebrated. For example, the families above, once they ratify the shareholders’ agreement, which in itself has many controversial issues and resultant meaningful conversations, we will pause to celebrate and communicate this accomplishment amongst the family. This agreement will set the tone and foundation for allowing the next generation to enter into the family business.
So do set some milestones as you travel along the succession journey. They are moments when you can pause, reflect, regroup and redirect as needed.
Learn, think, apply!
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