So you’re in business and you are thinking about succession, or maybe you should be but are not quite ready yet. You look to your children who are working in the business and, lo and behold, the one who is most likely to succeed you is a girl, yep, your daughter.
Maybe your immediate thoughts are ‘this is not the type of business for a woman’. Or maybe you have always wanted your son to take over and follow in your footsteps. But it’s your daughter who will succeed you, if anyone is going to.
Does that change your thinking at all about succession?
[Big pause]
Well, it should and it shouldn’t.
The ‘shouldn’t’ is easy. Succession is about the compounding of wealth across generations, and who you choose to succeed you in leading the company forward should be based solely on character and capability. Are they a worthy leader and do they have the brain power to run the business? If your daughter is the number one choice when it comes to filling these criteria, and she wants to step into that role, then don’t hesitate. Being a woman won’t hold her back at all if that is what she wants.
The ‘should’ is a bit more complex. Your succession role will be to support and train her to step into the role of CEO. She, as any child would, will have her own way of doing things. Your task is not to try and make her a ‘mini-me’ but to lift her strengths to the surface and give her all the wisdom and experience you can. But don’t expect her to take it all on board without question or challenge. Getting to the ‘should’, you will need to develop a relationship with her that allows you to support her. Depending on the type of relationship you have with your daughter, this may require some changes on your part.
Reflect on this and think about how your current relationship may need to change.
And if your successor is your son, all of the above will still be true.
Reflection: there are many complexities which may influence your thinking when it comes to who is the best person to succeed you. Many of these are cultural, traditional and generational, and you may not even recognise they are unconsciously influencing your decisions. A ‘big pause’ is often required to allow you to get your head in the right space. Take the time to make the best decision and do it in consultation with family members.
Active Knowledge Questions:
Have you considered who within your family may ultimately succeed you?
What are you doing to get them ready? Give yourself at least three years.
Searching for the world’s best succession solutions? Buy Transition – Orienteering The Five Lands of Succession.
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All the best in the success of your business,
Richard Shrapnel
