They say, “We go to work for our children”. In other words, we go to work to pay for the upbringing, well-being and education of our children.
After an entrepreneur becomes a millionaire or billionaire and reaches that 'I am in for free' moment in their lives, (where the mortgage and school fees are all paid) you would think their thoughts would turn to succession.
In most cases, it seems that is not the case. Most wealthy individuals do nothing about succession planning.
“60-70% of all family businesses that lose a founder to retirement or death are sold or liquidated”
Why do they not plan for succession?
• The potential loss of their charismatic leadership
• Personal devotion to the business
• Fear of their mortality
• A reluctance to let go of control and power
• Loss of identity
• Inability to choose among their children
• Fear of retirement
• Fear of creating jealousy or rivalry amongst the children
• A lack of interest in succession planning
The most vulnerable point of wealth is in the creation of it in the first place and the second most vulnerable is in the handing over it.
Doing nothing is:
• The least logical
• The costliest option
• The most destructive option
• And sadly the most popular option
“The dynastic dream is rarely achieved by doing nothing”
When does succession normally happen?
Succession will normally only happen after a trigger event, which sadly in most cases is a sudden illness or death.
If it is not the above trigger event, then succession will only take place when the founder decides there is:
• Personal financial security
• Family security
• Organisational security
• Psychological security
There is a woeful lack of preparation of the Next Gen
From my experience of working with many different families and numerous next gen, there is a woeful lack of preparation of the NextGen heirs.
See my other articles that I have written:
"I am 30 but I am 20 - The Inexperience of Wealthy Kids"
"Too rich to work - the next generation"
A life time’s sweat and toil for what? To be fritted away by their children!! What a great strategy!! Remember most wealth has gone by the third generation, no matter how many billions it is.
So maybe it is time for them to just stop and reflect for a moment. What is their succession plan, how do they prepare them and who will take over responsibility?
‘Transition is challenging’
If you are a founder/leader, consider these questions:
• Have your children ever learnt to make a consensual decision in their lives when it really matters? No longer can the dictatorial style of entrepreneurship work in a second-generation business.
• Have your children learnt the right skills?
• Have your children had the right experiences?
• Does the business need to pivot to play to their strengths?
• Or have you not stopped for one moment to think about it?
We can prepare your succession
We have a very successful Succession Preparation Programme for families to deal with these issues.
We provide a 12-month long programme designed specifically to prepare the Next Generation for succession. We can also run this programme for non-family future leaders in your business.
We develop their personal skills, their team skills and their strategic skills, so they are in a much better position to take over the responsibility of running and owning a family enterprise or just inheriting a considerable amount of wealth.
‘Preparation is a process and not an event’
Our Succession Preparation Programme for Families
This comprehensive programme is for families who have concerns that their Next Generation are currently ill-prepared or ill-equipped to manage the responsibility needed to progress and safeguard the future of the family enterprise and its wealth.
The Succession Preparation Programme has been designed specifically for families seeking a comprehensive solution to ensuring their next generation family members are better prepared for the challenges ahead.
We run an 'Open' programme for a minimum of 5 people from different families; a fully tailored 'Custom' programme for specifically one family (anywhere in the world); and an 'International Open' programme for those living in different parts of the world e.g. Geneva, New York, Dubai, Sydney, Hong Kong
• A uniquely designed programme
• A more effective leader
• More confident and assertive
• More resilient
• More self-disciplined and structured
• Better at strategic planning
• Better at decision-making and problem-solving
• Understand yourself better
• More effective
• Know how to work with advisers
Additional benefits of the 'Open' programme:
• Building and enhancing a personal network
• Observing and learning about other families approaches
• Developing social and group working skills
Additional benefits of the 'Custom' programme:
• An educational and coaching programme built around the specific needs of the family enterprise
If you want to sign up for a programme, then please contact us
"Over 1,000 people have attended our programmes since we started in 2002"