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Knowledge is Power: Understanding Business Succession
July 20, 2007
Business succession is a long term, formidable challenge that is impacted by a diversity of predictable interdependent succession issues that are referred to as the Succession Matrixsm. Understanding the make up of the Succession Matrixsm is important for two very important reasons.
- If you have not noticed from those “heat seeking” magazines and news programs, a family business is a proverbial jungle of financial and emotional problems.
- Any anyone who has a vested interest in a family business knows when there are problems because family problems impact business and business problems impact family.
The critical issues of business succession planning (The Succession Matrixsm) are:
- Owner Motivation and Perspective
- Personal Financial Planning
- Business Structuring
- Business Performance
- Strategic Planning
- Leadership and Management Continuity
- Successor Identification and Preparation
- Management Synergy and Teamwork
- Family Dynamics
- Family Business Governance
So the first benefit of understanding the Succession Matrixsm is the ability to specifically characterize the problem within the family business that is making everyone’s life miserable. In other words, the dialogue can change from “this family business is going to crash” to “we have a problem in (example) management synergy and teamwork.”
“Rawlsism: You cannot solve a problem if you don’t know what it is.”
Business succession in most instances is a formidable problem. However, business succession is a relatively galactical issue that is much too large and complex to address as a whole. However when you break succession planning down to the ten interdependent factors of the Succession Matrixsm, these problems are converted into palatable issues. So the second benefit of understanding the Succession Matrixsm is that we convert an overwhelming problem into relatively approachable issues that given enough time and commitment can confidently and competently be resolved.
Posted by Loyd Rawls on July 20, 2007 | Comments (0)
