Few succession stories are as emotive or combustible, as the handover from parents to offspring. Done well, you preserve legacy and energise growth. Done badly, the company and Christmas dinners are doomed.
Five Dos
- Start with choice, not obligation. Internships let children discover fit before titles appear on business cards.
- Codify roles. A job description prevents the dreaded “Because I’m your mum, that’s why” authority gap.
- Bring external mentors. A neutral executive coach filters feedback and tempers generational biases.
- Separate ownership from management. Shareholding can vest even if a child opts for a nonexecutive seat.
- Institutionalise governance. Advisory boards with independent chairs depersonalise tough calls.
Five Don’ts
- Don’t rush the baton. A phased transition over 35 years beats a cliff-edge resignation.
- Don’t skip compensation parity. Market-rate salaries avert sibling resentment.
- Don’t hide performance data. Dashboards help in keeping praise or corrective action objective.
- Don’t ignore in-laws. They influence the next generation; proactively communicate strategy.
- Don’t forget a Plan B. Illness, disinterest or relocation happen; groom nonfamily executives in parallel.
At Atula we help family businesses embed dashboards and knowledge bases that demystify decision-making, so that the breakfast table stays a place for waffles, not spreadsheets.