Transferring Power

 

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A family business is to business what military music is to music!-Anonymous

The unknown originator of that bleak observation was no doubt on the receiving end of some typically unbusinesslike transfer of power. Change, like time, marches on, but the results can be less than harmonious when family needs differ from the needs of the business.

The family business environment is, of course, impacted by all the issues faced by any type of business. Technology, laws, climate, competitors, economic trends, and unrelated (non-family) employees are among these influences.

In addition, the family business environment is influenced by anything that influences the family itself, such as the relative health of its members, their various interests and skill levels, their individual marital status, and the level of business participation of each individual.

Managing a transfer of power while balancing the internal and external environmental influences of the business is a juggling act at best. If the Illustrious Founder is somewhat less than willing to give up control and/or the Designated Successor is not well prepared to accept it, the transfer can be a challenge for even the most skilled psychiatric social worker.

Fortunately in this enlightened day and age, most family business people are professionals who manage their companies to compete effectively in our global marketplace. They don't have time to dwell on petty jealousies and family squabbles.

The major issues confronting a family business owner seeking to transfer power to successors are:

• selecting a successor
• intergenerational conflict
• different agendas
• first generation goals
• second generation goals
• training
• transition timing