Is Succession a Birthright?

Company succession should never be a birthright, even in a family business.

Succession planning can seem daunting, maybe even depressing for some. After all, planning for someone else to take over after you’ve left the company isn’t exactly the most exciting prospect. In many family businesses, succession can be as simple as the oldest child or immediate family member takes over once the current leader steps down or passes away. That, however, fails to account for whether the person is qualified or wants to do so.

Succession planning often takes years to facilitate, so it’s important to start early. Begin by taking an honest look at your requirements and your bench for the right candidate. Decide what skills are required to fill the roles you’ve identified. Once you’ve established this, you can start assessing people based upon these criteria. If that candidate isn’t within your family or current leadership, now’s the time to find and bring that person on board. There are benefits to advanced planning. You can review processes, changing dynamics and goals. You can also avoid power struggles. It gives you a chance to thoroughly vet candidates to avoid picking the wrong person. It also allows you time to come to grips that one day you’ll no longer be in charge. Even if your retirement is years or decades away, make time now to start planning for when you’ll no longer be with the company. What you decide is best for your business today can and likely will change in the years ahead but having the plan in place is key to your work surviving after you’ve left it. Start planning your succession now so that the process can be smooth, efficient and prevent having the right person come into the wrong situation.

There’s an old expression you’ve probably heard before: No one plans to fail, but many fail to plan. That is especially true when it comes to succession planning.