“With all their complicating factors, most family businesses do not make it past the first generation, and even fewer past the second or beyond,” noted EY Global in the global survey of executives of the world’s largest family businesses.
To keep the business in the family for generations to come, family businesses must embrace the succession issue and plan it, instead of avoiding it, the study authors said, noting that they need to do three things well:
1. View succession as a long-term process. Even succession planning is no guarantee of a smooth succession, the study said. Planning is important, but it means little if it’s not a continuous process in which all new information is included in the conversation and all relevant stakeholders are firmly in support of it. And, of course, the successors must be willing, trained and prepared to take over.
2. Clearly define who has the responsibility for succession. It turns out that most family-owned companies have stepped up to the plate in that regard: More than 87% of the businesses surveyed in the study “have clearly identified who is responsible for succession, implying that processes for handling traditional transitions, as well as potential emergencies, are well in place.” Boards of directors are most often responsible for succession.
3. Work steadily to prepare the next generation for leadership. “Training and educating the next generation are critical elements of preparing successors for both ownership and leadership succession, and the process starts early, sometimes in childhood.” Family-business leaders said that work ethic, leadership and entrepreneurship are the most important attributes they can nurture in the younger generation. Businesses typically require at least three years of outside management experience before family members are allowed to assume management positions in the family business.
So while succession is a unique challenge for family businesses, it can be done well. It just takes some planning, determination and, often, patience.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
