The reality behind why the 43% – SOCH
Growing a family business in today’s changing socio-economic environment is really challenging, even baffling to certain extent. Is it not almost a cliché to say that handing over the business from one generation to the other is another challenge altogether? Unfortunately, it can turn out to be a source of conflict in some situations.
The fact that 43% of family businesses do not have their succession plan in place made us question ourselves to understand the why 43%.
We wonder why despite family businesses having a son (or daughters in case of some businesses) to take their business forward, missed on being prepared in time for the transition and mainly the way of transition.
Where do they miss? Why?
In our findings, at large, the where and the why does not fall under the
lack of knowledge, or
the lack of wisdom, or
lack of love, or
lack of support, or
lack of readiness, or
even sometimes lack of awareness.
But, ironically, it falls under the ‘misplaced concept of succession plan with will creation’
To help understand succession planning better, we share with you a glimpse of what succession planning is and what it is not
It is really about what it takes to keep and grow the business
It is about what role one should take for the keeping and growing the business
It is about the responsibility and accountability that comes with the role
It is about what the person should get to fulfil the role
Not about who gets what
Not about the property/asset distribution
Not about treasury distribution
Not about who gets which business
Achieving sustainable business performance in changing timesBusiness Performance
The Leadership ChallengeBusiness Growth, Business Performance