The leadership transition at one family business happened in the middle of an ordinary meeting.
When the question arose of whom a certain employee should report to, the son, who had spent years running departments and earning the confidence of employees and customers alike, offered that the employee could report to him. The advisor in the room observed that this would make him president. After a brief pause, the father said that sounded good to him. That was it. No extra fanfare. Unfortunately, smooth transitions, like this case, are rare.
More than two-thirds of family businesses fail to make it from one generation to the next. When succession collapses, the verdict usually goes against the next generation, who supposedly weren’t ready or didn’t have what it takes. That explanation misses half the story.
This article explains who truly carries responsibility for failed transitions and shares recommended fixes.
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