2 minute read
Book Corner
Family Business Succession:
The Final Test of Greatness
By Gary McCoy
“ F amily Business Succession” provides useful principles to help a family busi ness transition from one generation to the next. The booklet is written by Craig
E. Aronoff, Stephen L. McClure and John L.
Ward, who are all principals in The Family
Business Consulting Group, Inc. It is less than 100 pages and is part of a series of publications to provide practical guidance surrounding family business issues.
The first edition of this volume was published in 1992. The most recent edition, from 2011, looks beyond the founder of the business. “This edition identifies succession management problems and solutions for any family business CEO, whether the business is in its first or second or third generation, or beyond.”
The subtitle of the book, “The Final Test of Greatness,” is theme of the book’s intro duction because the authors believe it marks the opportunity for families to preserve a lasting institution. “Managing succession is the task that is most critical to securing the future of private enterprise in the
United States. Rising competition, government regulations, taxes and other problems withstanding, the failure to plan and manage succession well is the greatest threat to the survival of family business.”
Each chapter includes specific family case histories. There are 15 exhibits scattered throughout the book with tips and checklists, such as Exhibit 3: “The CEO’s “Managing succession is the task that is most critical to securing the future of private enterprise in the United States. Rising competition, government regulations, taxes and other problems withstanding, the failure to plan and manage succession well is the greatest threat to the survival of family business.”
‘Letting Go’ Checklist,” and Exhibit 8: “8 Ways to Minimize Family Tension.” Three appendixes at the end of the book provide one family’s emergency succession plan example, a family council charter example and guidance on how to forge a family mission statement.
I liked the chapter on leadership transitions. The authors cite five different models to transition management from a CEO to a successor, including “Cold Turkey,” “Delay, Delay and Delay and…,” “Here, Gone, Here, Gone…,” “Gradual/Progressive,” and “Nonfamily CEO.”
The authors express their preference for the “Gradual/Progressive” model. “In our experience, it promises the greatest assurances for a smooth, successful transition. It provides the best safeguards for protecting the health of the family and the capacity of the business to thrive. And it offers the widest and most creative opportunities for the successor to develop into a solid leader and for the outgoing CEO to plan and implement an active, satisfying life upon retirement.”
This is a good, nuts and bolts guidebook for those who are starting down the path of succession planning, or for those who have already put together a plan and are looking for a benchmark comparison. n
