Succession is about the transition of control and ownership of a business – or maybe it’s not?
Succession is about transition but it’s a lot more than who will be a director and shareholder of the various businesses in the family. It’s really about stewardship, leadership and responsibility in the family. Who is willing and able to step up and take on the mantle of leadership? And importantly who will the family accept in that role.
It is this critical distinction about what succession is really all about that leads me to say, ‘You can’t make decisions for the next generation.’
Succession is actually not about the current or exiting generation, it’s actually all about the next generation, their capability and capacity, and the glue that holds them together as a family.
If you are in a current leadership role then you must tread with caution if you hear yourself saying, ‘I’m the best one to decide this’. With respect to succession, every decision you make is a missed opportunity to build capacity, capability and glue in the next generation.
Legacy always rests with the next generation, as it’s their performance that will determine if there is any legacy. Invest in the decision-making capability of the next generation.
Active Knowledge Questions:
Are you growing the capability, capacity and glue within the next generation?
Or are you just making all the decisions for them?
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
