Family businesses face unique challenges that require modern and proactive succession strategies.
In the dynamic current business environment, family businesses face unique challenges that require modern and proactive succession strategies. An effective succession plan not only ensures business continuity but also facilitates adaptation to rapid market and technological transformations.
Globalization and digitalization represent the new context in which a modern succession plan must be planned with proper anticipation. When? Quoting Pablo Montalbetti, a Peruvian expert in Family Businesses: “There is no exact date or methodology for doing it, but there are criteria that facilitate the transition.”
The first thing we must ensure is the continuity of knowledge and organizational culture. Founders and current leaders possess deep business knowledge that must be transferred to the next generation. Without a succession plan, this knowledge can be lost, the culture can be severely affected, and consequently, the strategy, performance, and competitiveness of the company.
What is the starting point? It is recommended to seek the support of specialized advisors who can guide and steer the company through an appropriate succession process with close, personal advisory and sensitive topics addressed.
Furthermore, a modern succession plan should consider diversity and inclusion. Involving a variety of voices and perspectives within the company can foster innovation and a better understanding of global markets. Succession should not be limited to family members only; including external executives with complementary skills and experiences can strengthen leadership and bring new ideas.
During the succession process, conflicts due to differing opinions and visions of family members and owners are common. Therefore, in addition to planning, effective dialogue is crucial for the process to proceed. Understanding that the key point for the future of any company is always good communication is vital. Alignment, strategic business planning, and a clear succession plan are equally fundamental. This will help establish the roles and responsibilities of each member and the new leader clearly.
