Succession is a fundamental process in family businesses and in companies where the founder or leader plays a central role in the decision-making and management of the business. Here are some important aspects to consider:

✔️ Advance Planning: Succession planning should begin well in advance, ideally years before the generational or leadership change. This allows for a smooth transition and minimizes the impact on the business and the family.

✔️ Identify Successors: It is important to identify and groom potential successors within the family or business. This may include providing them with professional development opportunities, formal training, mentoring, and hands-on experience in various areas of the business.

✔️ Develop skills and capabilities: Successors need to acquire the skills and abilities necessary to run the business effectively. These may include management skills, technical knowledge, emotional intelligence, and communication skills.

✔️ Family considerations: Succession in a family business can be affected by complex family dynamics, such as sibling rivalries, generational conflicts, individual expectations and disagreements about the future of the business. It is important to address these considerations carefully and respectfully.

✔️ Balancing merit and legacy: It is critical to balance merit and inheritance in the succession process. While it is important to consider the performance and capabilities of successors, the rights of family members must also be respected and their contributions and values considered.

✔️ Professionalize and structure: In some cases, it may be necessary to professionalize the management of the business and structure it more formally to facilitate succession. This may involve, among other things, the implementation of corporate governance guidelines, the creation of governing bodies, and the development of family protocols.