Founders or CEOs of family businesses overwhelmingly prefer that a member of the family carry on the management of the company, yet statistics show that fewer than half get their wish. With no family member able or willing to move into the CEO position, more than 50% of family-controlled companies must turn to an outsider.
How can family businesses improve their chances of having the next family leader ready to assume the CEO or other leadership role? This article examines how ongoing succession planning with the support of a strong, involved board and family council can help a family business identify and prepare the next-generation of leadership. When they do need to look externally for senior-level executives, family companies should recruit individuals who not only possess the specific skills and expertise that are needed for the company’s particular stage and direction, but also are sensitive to the unique issues and dynamics of a family business.
“Time for an outsider: Succession planning for the family business” is the first in a series of articles exploring family business leadership issues.
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Notes
Article reviewed: May 15 2007