Last week’s Presidential election in the United States was a great lesson on the need to have clarity about how decisions are made and what the framework is for implementing those decisions.
Many family businesses have created their own guidelines and rules for how leadership might transition from one leader to the next. Absent some understanding of the decision making framework, passions arise and frequently disagreement result in a divided ownership group.
One thing we learned from last week’s election was that there most certainly will be passion when choosing leaders, but agreeing on a constitutional framework allows everybody to get a good night’s sleep, wake up and function the next day. Such is true in family businesses, and therefore we generally support the implementation of policies, procedures, and even full constitutions for families who seek to keep their enterprising families together for the long run.
Do you have clarity on how transition will work in your family?