The only thing that causes more intense family conflict in a family business than succession planning is no succession planning or late succession planning. There is no way to cover all of the bases in one article. Let this one common example illustrate the point: early succession planning is critical in a family business. The next generation often gets involved in the business early in life. They often get involved in the business before they’ve really given it a lot of thought. It would surprise many non-family members of family business to know how family members are often paid less than that position would get on the open market. They aren’t, however, underpaid. The problem often happens that because they start early they end up in a position that they are really (honestly) not that good at doing. Now the 1st generation doesn’t want to get rid of them, so they end up keeping them, covering for them in many ways, but not really paying the what the position would be worth on the on the open market, but maybe over-paying for the abilities. The next generation, however, is under the delusion that they are actually getting underpaid because they are building sweat equity. Once the little white lie turns into a huge resentful barrage of accusations, things really turn messy. Keeping in mind that the most important word in “Family Business” is “Family,” plan early. The other thing that planning early will force to the discussion table, is who is really there because they want to be and are good at what they are doing. This kind of thinking will not only save the family unity, but also save a family member from underachieving and being the martyr while at the same time preventing the company from hiring the best person for the job.Visit me at www.businesscoachchuck.com to learn more.
Coach Chuck www.businesscoachchuck.com