Challenges related to business succession and continuity.
In family businesses there are numerous challenges related to the succession and continuity of the company, with it a natural process of adaptation of the family successor, one of the strongest challenges is to eliminate the shadow that is created by the founder.
Creating the successor’s own story has the following challenges:
- High expectations | The successor often faces very high expectations from the family, collaborators and other members interested in the company. This can create significant pressure to demonstrate his leadership ability.
- Pressure to maintain the legacy | If the previous leader (usually the founder or leader of the previous generation) has left a strong mark on the company, the successor may feel the pressure to maintain and build on that legacy, which can be a challenge in itself.
- Complicated family dynamics | Family dynamics can complicate the relationship between the successor and other family members who are not involved in the company or who have different visions about its future direction.
- Resistance to change | If the successor seeks to implement significant changes in the business, he or she may face resistance from employees and other family members who are accustomed to the way things were done under the previous leadership.
- Pressure for immediate results | The pressure to demonstrate quick, positive results can be intense, which can lead the successor to make hasty or risky decisions.
- Need for ongoing development | The successor often needs ongoing professional development to acquire the skills and knowledge needed to effectively lead the business.
- Balance between family and business | Maintaining an appropriate balance between family responsibilities and business responsibilities can be challenging, especially when working in a family business.
- Managing the shadow | The successor must learn to manage the shadow he or she casts and how this influence can affect the business and business decisions.
- Effective communication | Establishing effective communication with all stakeholders, including family, employees, and business partners, is crucial to addressing the challenges associated with the successor’s shadow.
- Managing these challenges requires a strategic approach, careful succession planning, development of leadership skills, and open and honest communication with all stakeholders. It may also be helpful to engage external advice, such as family business consultants or counselors, to successfully navigate these challenges.
Author: Smart Consulting
