Loyd Rawls

4 Common Myths of Selecting Successors
September 14, 2007

A fundamental prerequisite of business succession is a successor.

Succession is an organizational issue from an ownership, leadership, and management standpoint, which impacts every department of the business. On total, the selection of successors for a business and within a business is the focus of a tremendous amount of time, energy and money. And rightly so, because on the shoulders of successors rest the continued success, viability and even survival of the business.

Before discussing the criteria for selecting successors let’s dispel 4 common assumptions that are not much better than A Rod’s batting average. Although batting 300+ could get you in the Major League Hall of Fame, that same average in the selection of successors would be a train wreck.  

1.      The son is not necessarily the natural successor.

You may think he is working hard and very responsible, but all things being equal your daughter has equal potential and more opportunity after utilization of sex discrimination leverage.

2.      The oldest son is not necessarily the natural successor.

By virtue of birth order, your oldest son is likely the most dogmatic and assertive. However, being aggressive and assertive does not mean he is a leader. Younger sons (and daughters) learned diplomacy to stay out of the wrath of big brother. 

3.      A college degree is great, but the sheep-skin is no benchmark for leadership.

Respect the academic accomplishment, but don’t confuse book knowledge for the ability to motivate and manage people.

4.      A neutral or bad family successor is not better than a good non-family leader.

 Not to press the obvious but kids who are not good at leading should follow. Family members can always provide accountability as a board member.

Next post: The 4 criteria for selecting your successor

Posted by Loyd Rawls on September 14, 2007 | Comments (0)