Succession can be all about the end goal which should be an orderly transition of governance and wealth of the family enterprise. However, the terms of how a successful succession plan can be effected is better understanding between the generations. This can be accomplished by spending time and listening to the views; not necessarily accepting them but hearing what the following generations have to say.

We all know there are significant differences in attitudes, values and expectations between generations:

– the Baby Boomers who lived through some of the most prosperous times in modern history
– the Gen X’ers who worked and lived in less prosperous times and bear the responsibility for caring for aging boomers
– the Gen Y’ers who will inherit plenty
– the Millenials who can be entitled and short of dedicated attention span

I am being provocative using the above illustrations with purpose. The above generalizations are just that. There are always differences between generations. The generations preceding the Baby Boomers also had differences of views and values with following generations and often judged them harshly. We have to actively work to better understand the motivations and values of these next generations who shall inherit a significant amount of wealth.

In N. America, in the next 10 years, $ 4.1 trillion will pass between the generations, a meaningful amount of wealth and over the next 30 years, $ 30 trillion is estimated to be inherited by the following generations.

So, as you ponder your own succession plan of your family enterprise, consider these points:

– what are your succession plans (and hopes)
– who are your successors
– what are their values and aspirations – putting their “shoe on the other foot”.

Thinking in this way may pave the way for a succession plan that would meet with a more smooth implementation.

Learn, think, apply.