Why is Succession Management Often Left to Chance?
While many family business owners may agree that succession management is important, few actually take the steps to develop and implement a formal plan. Why? Research suggests the following:
- Many felt it was "too early" to begin planning
- Transition plans are complex and take a great deal of dedicated time and effort; it is often difficult to find or make the time
- Succession management can be associated with uncomfortable topics, such as death or simply growing old, and making difficult emotional decisions
- Avoidance of conflict - senior members may struggle with how to be "fair and equitable" to junior family members
- Indecision about the future
- Don't know where to start
Unfortunately, it seems that the absence of management succession planning is often the ultimate cause of family business failure.
Management Succession Planning - Start with the Basics
Succession management may be an arduous task, but it is one that should not be overlooked. Breaking the process down to organizational components may help. The four departments that are the backbone of the business must be accounted for: administration and finance, operations, sales and marketing. Starting with this blueprint, it may be easier to decide on direction and leadership.
At the Alberta Business Family Institute, we understand the intricacies and the challenges associated with management succession planning. We also have the tools, resources, programs and mentors that can help guide you through the process.
Consider a Family Membership with ABFI. It may just be the best investment you make for your family and your business.
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