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It's never too early to start discussing this with the next generation
Only a few families are able to initiate and manage succession conversations on their own. This is a difficult task that is often put off. Stepping out of your usual family roles and discussing options with the next generation can be a delicate and demanding task.
Each member of the family is afraid of hurting others or expressing something undesirable. Succession conversations are very different and sometimes intimidating in comparison with conversations usually conducted between parents and children.
Many families choose to bring in outside help: A neutral coach or counselor can be a great help in moderating and calming the sometimes highly emotional conversations.
Uncertainty and conflicts related to succession can be avoided if the owners from the previous generation involve the new generation early on. This can be done both in the context of the family business and in conversations about the next successor and owner.
Successors and heirs must learn to own the business and make decisions together. They need to build mutual trust and learn to work together as a team with one voice. The earlier they start, the easier it will be for them to make decisions and the more responsible they will be as owners.
The expectations of new and older generations in the family business may be different, but their core values are generally the same. Once the conversation begins between seniors and juniors, families often realize that their aspirations are the same. They just never had the opportunity, or took the time, to talk about it together. These discussions provide both generations with important knowledge and understanding of each other and the business, helping to strengthen the foundation for a successful family business.
Family businesses that want a harmonious understanding between generations need to share their knowledge and discuss key issues:
- How do we create a language of ownership, an awareness of the role of ownership and its responsibilities?
- What are our strengths?
- What is our goal, and why are we doing this?
- What do we do together?
- What are the history, values, and objectives of our family?
- What is our purpose?
This enables the next generation to engage in conversations about what they want for themselves and for what they own.
Here are some questions to get the conversation started:
- Why should we own it together?
- What are the advantages and disadvantages of being joint owners?
- What will we own in the next ten years that we would still want to own together?
- What opportunities are available to me within the business? Where do I start?
- What knowledge is needed?
- What are our expectations?
What do I expect from myself as an owner? What do my parents expect from me? What do the other members of my family expect from me?