Running the family business – How to prepare the next generation

Will your business be passed down to a family member?  How interested is the younger generation in stepping up to a leadership role? Family or non-family, are they prepared?

This week’s tip of the week comes from Liz Kislik . Liz helps organizations from Fortune 500, national nonprofits, and family-run businesses solve their thorniest problems. In her article How to prepare the next generation to run the family business, she addresses many variables that can either stand in the way and/or help promote successful succession planning for the family business.  From one generation to the next, and some multiple generations.

She provides some valuable insight for those who may be contemplating what steps to take before exiting and allowing the next generation to take over the leadership role. It’s a big task, riddled with a host of different challenges.

Touching down on a number of the areas that are unique to a family ran business, Liz directs readers on how to recognize opportunities that can be reflected in succession planning. She puts to rest the assumption that “someone else will always be there to care for the business” She cautions that not preparing the younger generation in the decision-making processes or in leadership roles can be an opportunity missed.

“someone else will always be there to care for the business”

Using guiding principles in suggesting an approach to create progressive developmental experiences, Liz provides some insightful examples and lays out how to start planning to prepare the next generation. From youth through adulthood, each has a place to learn and grow from.  She also notes, “encourage family members to participate in the work of industry associations to ensure that the children have other mentors, nuanced industry outlooks, and substantial personal networks”.

“Encourages family members to participate in the work of industry associations to ensure that the children have other mentors, nuanced industry outlooks, and substantial personal networks”.

Other points also considered

• Insist on integrity.
• Educate the entire family.
• Opportunity to talk about life around the world and how the business operates
• Create a collection point for family members’ views about social policy that can be conveyed back to the management and the board.

Providing a wealth of information for those who may be considering passing along the family business, Liz provides some great thoughts to ponder as you begin your own exit journey.

A good read. I highly recommend it. How to prepare the next generation to run the family business