To achieve sustainable long-term family business survival through effective succession, the unique challenges of families in business can be captured in seven key areas…
- Ownership Clarity: the family must achieve clarity and consensus on the continued family ownership of the business and the type of business it wishes to own;
- Family Relationship with the Company: the family needs to define it’s relationship to the company it owns to achieve clarity and consistency for all stakeholders;
- The Pathway to Consensus: families may need assistance, facilitation and examples from best practice/other families in business to help them reach consensus over time;
- Conflict Resolution: to achieve long-term ownership families will need to channel, discuss and resolve potential differences of opinion;
- Next Generation ~ Preparation for Ownership: the family will need to be prepared for ownership by learning about the business it owns, rights as shareholders and the responsibilities of owners and finally the values and aspirations of the family;
- Next Generation ~ Leadership Development: each family will need to find a way to encourage and support next generation family members to aspire to and achieve positions of family leadership;
- Wealth Management: family members will need the skills to understand and manage the wealth they may inherit.