At times in succession, the outcome is to divide the business up. This thinking can be fatal.
The scenario (as you may see it): “The business has been around a long time and we have always kept everything in one big bucket. I’ve had control and ownership, and it was the simplest way to manage everything. But now looking at our succession plan, I think the easiest approach is to ‘slice and dice’ and just divide the lot up. There is no way l see the children working well together and it will stop arguments over who the next CEO will be after me.”
Now, an alternate perspective: “The business has grown significantly since I commenced it many years ago and now is really made up of several distinct businesses. It makes sense to ‘parachute out’ these various business units and allow them to chart their own future but at the same time stay connected as an alliance. I have several children in the business who have naturally aligned themselves with those businesses that suit their talents. This will allow them each to take responsibility for their areas and to grow them as they see appropriate.”
You may say ‘it is just a play on words’ but I believe it is more about setting a foundation for the future growth of these businesses, while also seeking to underpin a continuing unity across the family.
Are we slicing up the pie and grabbing what we can? Or are we being provided with an opportunity to take responsibility for the future of a segment of the business?
This context will make a significant difference to compounding wealth across generations.
Active Knowledge Question:
When you think of the future of your business and family, are you setting a foundation for future entrepreneurship and growth?
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All the best in the success of your business,
Richard Shrapnel
