I wanted to relay a story to you of a family that did not have a succession plan.

Sad, really.

The business was a thriving consumer goods business, run by the founder and owner (generation 1) for about 25 years.  It earned her and her family a good living.  Unfortunately, she was the heart of the company.  She knew all of the key suppliers, largest customers and the bankers.  To all of these three parties, she personified the business.  They did not know anyone else in the company.

Unfortunately, the owner was stricken very suddenly with an illness and passed away soon thereafter.  The grieving widow was thrust into running the business.  He did not have the experience not having worked in the business, ever, to capably take on the reins of the company.  The business dwindled quickly.  Key employees left.  He ended up only able to sell the remaining inventory of the business  for cents on the dollar.

The owner always was concerned about wanting to maintain control on her business and really never shared her “trade secrets”  with key employees / management.  This was her folly.

I imagine that this story has repeated itself numerous times.

I hope that the tale provides you some pause for reflection in your business.

Enjoy the weekend.

Learn, think, apply!