“To inherit or to merit? That is the question.”
It’s the question that keeps parents up at night—wondering how to raise their children in the family business. Either parents give their children special treatment (the “inherit model”), or they require their children to earn their position (the “merit model”). Both models represent extremes, and Josh Baron believes there’s a better solution.
The “inherit model” is often considered the most harmful of the two models. When the Next Gen are provided with their roles rather than expected to earn them, entitlement abounds and the business suffers. To avoid this, parents automatically move toward the “merit model.” It seems the most plausible route forward.
However, requiring the Next Gen to earn their ownership stake can inadvertently trap them in a position that may not align with their career goals or personal aspirations. Dissatisfaction can lead to decreased morale and productivity. Rather than relying on the extremes of either model, Josh Baron recommends blending the two together.
Uncover three actionable steps to better prepare your family business for succession in “Merit or Inherit: How to Approach Succession in a Family Business.”
Read about the three steps to prepare your family business for succession here.
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