This paper reiterates the big difference between Ownership and Management which, if understood well is the basis of success in a family-business transition. Of course, separating ownership and management is, however, not without its disadvantages which span from slower decision-making and reduced flexibility and agility when responding to change, to conflicts of interests between owners and management team.
The first chapter addresses the danger of lack of contingency plan in case the owner-leader suddenly wants to leave the business or unexpectedly becomes incapacitated or passes away. Too much centralized control or too much dependence on owner puts a family business at risk when the owner-manager gets out of the business.
The second chapter addresses the weakening emotional ties of the owner to the business or thoughts of retirement and our recommendation of making this process in 2 steps at least.
The third chapter covers the governance processes which should be in place and, if not, built and implemented especially when owners are ready to make a step back from daily operational leadership.
What do you do if the designated child or children to lead the family business are not ready yet to lead (too young or too unexperienced) or even not willing to take over the family business?
Or when the complexity of the business needs a different perspective? Or when your company has a stagnant growth from different reasons?
You may find all these answers by downloading the document below.
