This will also allow them the time to build their own reputation within the business, so they have built trust and respect. When the time comes to be progressed, it does not look like an outsider with the right surname being parachuted in, but a trusted colleague who knows the business.
- Ignoring the surname in the workplace.
From a leader’s perspective as head of a family business, you should try to overcome any risk or perception that someone is in a role because of who they are. Every family member in the business should have a clear sense that they will be judged to the same standards or higher than other staff and that there will be no favours.
From a family member’s perspective, you need to show expertise and competence in the role and you need to be aware of the boundaries of your role in the workplace. I have heard of at least one business where, following succession, the first act taken was to remove family members from the business because they used their name to overstep their authority, demanded actions that countermanded more senior employees because of who they were and harmed the business culture and performance.
That is an extreme example, but battling the belief among staff that you are acting in a way you could not if you were not family is a challenge to be overcome.
- Ensuring family members have the right expertise, experience and credentials.
A business would not hire a non-family member without the right qualifications and experience or promote someone without having proven their worth. So do not be afraid to ensure that a family member being ear-marked as part of the succession plan is given the right training and the chance to have the right experience.
This can even involve them starting in a different career or at a different company. I have seen family members qualify and work at professional services companies, learn their trade and their profession, and then take that experience back into the family business. Allowing a family member time outside of the family business will not prevent them being part of the future if it is managed correctly.
But what if the plan is to sell the business?
For some family businesses, the right decision is to sell the business rather than create and implement a succession plan. The decision to sell can be a hard one and most family businesses are unlikely to have gone through a sales process before.
Getting to the point of selling the business can come from a number of factors, which might include:
- Demand from different generations with different expectations.
