Succession Planning: The Good, The Bad and The Ugly
Cindy Radu, a Family Enterprise Advisor, provides examples of and discusses the good, the bad and the ugly of succession planning, with real life examples:
Succession is a process rather than an event. It happens as “control” and “decision-making authority” are transferred to a successor. The entire process is predicated on one significant factor: the founder or current leader has the desire and recognizes the need to move on. It also assumes they have confidence in an identified person to succeed them.
This can be done in many ways and the chosen methodology will have a profound influence on the ultimate sustainability of the enterprise.
We believe that a measured, gradual and defined transition is the best means to transfer control and decision making. It is an effective way to have a successful and seamless transition. One option below allows for the inclusion of a non-family CEO. There are often cases where the founder is ready to exit, but the next generation successor is not yet prepared or qualified to take over…Succession Planning: The Good, The Bad and The Ugly