You are currently in succession thinking mode and the question that continues to roll around in your head is, ‘Will my children be able to work together?’
It’s a good question but one that must be resolved and not simply thought about. If wealth is going to compound in the future, it is critical that excellent working relationships be built.
The question can then become one of ‘how?’ and the discussion of roles, responsibility and remuneration can begin.
A starting point is to set a cornerstone succession goal, for example, the compounding of wealth across generations while ensuring family unity, individual growth and a sense of contribution. This is my goal formula for succession success.
You now have a place to start and a focus for your discussions with the children. Yes, it is not really a matter for you to decide but rather a discussion for you to initiate, support and settle. And it may well require an independent succession advisor to facilitate the discussion.
The discussion should not be reduced to ‘who is going to be the new big boss’ that all other family members report to. That is totally the wrong context but often the way the discussion can proceed, if not placed in the right context from the start.
The discussion should be about, who the right, most capable people are, to take on the various roles that will become vacant in the succession process.
Who is willing to step up and take on the responsibility of leading the business forward and ensuring its success? Who is willing to be accountable to the shareholders (the family) for the success of the business? The questions are ones of responsibility and accountability, not authority. They are questions responding to the goal of compounding wealth across generations.
And, as the discussion proceeds, every family member must feel that they have a role to play in the future success of the business, a contribution they can make and that there exists for them an opportunity to grow and develop on a personal level. These are the elements that support family unity.
This must be an open and active discussion with everyone encouraged to speak up and express their wishes and concerns.
At the conclusion of the discussion, the outcomes should be recorded in the Family Charter and set in the various agreements and constitutional documents that evidence the succession process.
Active Knowledge Question:
Have you created a forum and set the process and rules that will underpin your children’s ability to work in the business together successfully?
Act Now:
Searching for the world’s best succession guide? Buy Transition – Orienteering The Five Lands of Succession.
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All the best in the success of your business,
Richard Shrapnel
