Dan Schneider

How Confident Risk Takers Overcome Fear to Beat the Odds
October 22, 2007

Succession Success™ - the ability to sustain your business success through the next generation – becomes less and less likely with each passing generation. As a matter of fact, the odds of getting through multiple generations are decidedly long. Still, some families beat the odds.

 How do they do it? Way back in the first half of the last century, sometime in March of 1933, a man who could walk only with support from others stood on the Capitol steps in Washington, D.C., and said to a nation filled with depressed people that “The only thing we have to fear, is fear itself.” Franklin Roosevelt understood and knew the power of both physical and emotional paralysis.

So, what fears do we have to overcome to achieve Succession Success? Here are the four we find most frequently:

• Fear of losing control or having your security compromised;
• Fear of the unknown;
• Fear of spousal/ family conflict; and,
• Fear of regretting a decision.

Each of these fears stems from a failure to deal with one or more of the ten factors we’ve identified as critical to Succession Success. Let’s look at how to overcome each of these fears.

Fear of losing control and/or security. Some of our clients tease about controlling from the grave. Others are dead serious about it. As an alternative, how about creating an organizational culture whose values reflect your own? Decisions made by your successors will then most likely be consistent with those you would have made under similar circumstances.

Fear of the unknown. The best way to win at craps is to load the dice. So, load the dice. Use strategic, operational, and financial planning to build a framework that matches the vision you’ve been carrying around inside you. It will take time and patience, which may be in short supply, but the outcome will be a winning combination.

Fear of spousal / family conflict. Most conflict is the direct result of mismatched expectations. To align spousal, parental, child, or sibling expectations you simply need to stop talking and start communicating. Use the principles of family governance and family dynamics to talk about your estate intentions, personal and family values, and legacies. Use the “early and often” technique to identify potential conflict so that it can be defused before it blows.

Fear of regretting a decision. Most of us are more rationalizing than we are rational. It’s in our genes, and we haven’t been around long enough to become “vulcanized” so that we think logically 100% of the time. When things aren’t working out, make a decision to change course. It’s really pretty simple. It’s just not always easy. 

Fear causes people (and organizations) to get stuck or to rely on chance rather than choice. Try whichever of the four simple recommendations we’ve made as a way to overcome whatever is causing you to lose your peace of mind and depriving you of the fruits of your labor. If you don’t give up and you don’t give in, you might just be OK. 

Posted by Dan Schneider on October 22, 2007 | Comments (0)