Overcoming emotions and conflicts to plan for leadership succession

Herrera et al. discuss how to overcome emotions and conflicts to plan for leadership succession. PwC's 2019 US Family Business Survey found that a mere 18% of respondents had a succession plan that was documented and communicated. One reason family CEOs tend to avoid the topic of succession is...

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Bibliographic Details
Published in:Family business 2019-07, Vol.30 (4), p.26
Main Authors: Herrera, German, Kalt, Julie, Pendergast, Jennifer
Format: Magazinearticle
Language:English
Subjects:
Chief executive officers
Emotions
Family owned businesses
Leadership
Organizational change
Succession planning
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Summary:Herrera et al. discuss how to overcome emotions and conflicts to plan for leadership succession. PwC's 2019 US Family Business Survey found that a mere 18% of respondents had a succession plan that was documented and communicated. One reason family CEOs tend to avoid the topic of succession is that it leads them to consider their own mortality. In family businesses, the CEO expectations can be complex. Competencies and skills matter, but culture fit and trust are equally important. In this situation, the shareholder did not trust the COO. Succession planning in family companies is a difficult process. It combines emotional and organizational change and all of the associated feelings. Proactive planning alleviates some of the stress, offers more talent options for the CEO role, provides the family a voice in the process and gives the company a much better chance at surviving for multiple generations.
ISSN:1047-255X