Previously, I wrote about identifying your successor as an integral part of the succession plan.  One family with whom I work had a very forward thinking parent.  They groomed their two children to run the business.  Before they joined the family business, however, each was encouraged and did pursue the development of their own capabilities and careers.  This was important to enable the children to have confidence that they could survive and thrive in the real world.

The parents communicated two additional matters:

1. they always told them that the “door was always open” for their children to return to the business.  Eventually, they did return.

2. they talked about the business, both the successes and the struggles that they faced each day and over the medium term as they developed the business strategies.

The family still remained a very close knit group and after about 10 years and 12 years, the children decided on their own to return to the family business.  This was not an unfamiliar environment to them.  They had been around the business; knew the key employees and even had met some of the key suppliers and customers at company functions, which they had regularly attended throughout the years.

The transition of the running of the business to a co-leadership model worked well.  One child took the helm, more as the CEO and the other was more naturally suited to be the COO. Five years later, the parents were able to step back from the business on a reduced work week and eventually completely removed themselves from the business after another 2 years.

The well thought out plan worked perfectly.

Learn think apply.