Succession Planning
Insights
Executive Education
All in the family
H o w t o plan for the next generation t o join your business etermining who will succeed you when you retire rail be a challenge, especially if you own a fajiiily business. You may want to hajitl the reins over to your child, but will he or she be a enable successor? Will he or she even be interested in tlie business and, if not, who will become the next leader? li'you have more than one ciüld, how do you choose between them? "They have to know about the i:ompany." says Gaia Marcliisio, assistant professor of nianageiiient ajid faculty associate at Kennesaw State I'niversity's Coles College Cox Family Business Enteri^rlse Center. "Majiy f;iiuilies decide not to tell the children anything about tJie company because they want to leave tJ\em free to choose and not feel pressm'ed to enter. But tliey aie not able to make a good decision if tliey do not know about the business." Small Business spoke with Marchisio about how to deal witli succession, how to prepare the next generation and the company lor tlie transition, and how plajuiing early can help to avoid conflict.
What steps should you take to begin succession planning?
Interviewed by Meredyth McKenzie Succession is a matter of relationships ;tnd actions coupled with communicalion in Ihe company and in the faniiiy. Tell stiiff menibeiïi what you'ir going to do, listen I o them, and reaflinii the orgaiiKational chait as it is changing. Try to avoid position compctilion and reinforce collaborMtion among f;unily meml>ers. It s impoiiiuit for thi' next generalion to bring value to tlie compajiy and not have a job created simply for them.
What problems can you run into with succession planning?
D
Gaia Marchisio Assistant professor of managemenf Coles College of Business Kennesaw State Universify
Start when yoiir children are bom. Share your passion for the business ajid teach values and i"esponsibility. Do not pressm^e your ciiildren, but educate
Executive Education
All in the family
H o w t o plan for the next generation t o join your business etermining who will succeed you when you retire rail be a challenge, especially if you own a fajiiily business. You may want to hajitl the reins over to your child, but will he or she be a enable successor? Will he or she even be interested in tlie business and, if not, who will become the next leader? li'you have more than one ciüld, how do you choose between them? "They have to know about the i:ompany." says Gaia Marcliisio, assistant professor of nianageiiient ajid faculty associate at Kennesaw State I'niversity's Coles College Cox Family Business Enteri^rlse Center. "Majiy f;iiuilies decide not to tell the children anything about tJie company because they want to leave tJ\em free to choose and not feel pressm'ed to enter. But tliey aie not able to make a good decision if tliey do not know about the business." Small Business spoke with Marchisio about how to deal witli succession, how to prepare the next generation and the company lor tlie transition, and how plajuiing early can help to avoid conflict.
What steps should you take to begin succession planning?
Interviewed by Meredyth McKenzie Succession is a matter of relationships ;tnd actions coupled with communicalion in Ihe company and in the faniiiy. Tell stiiff menibeiïi what you'ir going to do, listen I o them, and reaflinii the orgaiiKational chait as it is changing. Try to avoid position compctilion and reinforce collaborMtion among f;unily meml>ers. It s impoiiiuit for thi' next generalion to bring value to tlie compajiy and not have a job created simply for them.
What problems can you run into with succession planning?
D
Gaia Marchisio Assistant professor of managemenf Coles College of Business Kennesaw State Universify
Start when yoiir children are bom. Share your passion for the business ajid teach values and i"esponsibility. Do not pressm^e your ciiildren, but educate