Transitioning leadership in a family business isn’t just a business decision. It’s an emotional, strategic, and even personal journey. If you get it right, then you secure your legacy for generations. But, if you get it wrong, then the years—decades—of building the business can quickly unravel into conflict. There are eight steps to ensure your leadership handoff goes smoothly.
The first step: plan early. For many family businesses, transitioning leadership seems far away, so what’s the point in worrying about it now? However, the earlier you plan, the more time you have to:
· Identify future leaders.
· Equip the Next Gen with necessary skills and experience.
· Unite the family around a shared vision for the transition.
It’s recommended that family businesses start the conversation about transition years in advance. This allows for flexibility in case family or business dynamics change. And it gives more time for the family and Next Gen to prepare for this change.
There are seven additional steps family businesses should take to ensure a smooth leadership transition. Read about them in this article.
Read about the eight steps to ensure a smooth leadership transition here.
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