It’s a great visual: a relay race where the next runner is waiting in position ready for the current runner to reach the handover spot, at which point they will execute a quick and seamless handover of the baton so the team can continue apace.
The first runner arrives at the handover point, but for some reason, the baton is stuck in their hand.
They can’t let go.
The race stalls.
This happens regularly in family enterprise succession planning.
The rising generation is chomping at the bit to take their place and make their mark.
But the incumbent generation is … hesitant, uncertain, anxious.
What is at the heart of this hesitancy?
It might be expressed in different ways: the rising generation are not ‘ready’, the business may struggle with a change of leadership, the current economic environment is not suitable.
Sometimes, these are deflections from “The Sticky Baton”: the difficult emotions associated with letting go.
For the incumbent generation, the business is often something they put their heart and soul into for decades and watched it grow – almost like a child that is now grown up.
When our children leave home, we are often ambivalent – happy for them to be spreading their own wings yet sad to see them leave.
Their departure leaves a void in our lives.
In the same way, passing the business to the rising generation (or selling it) leaves a void.
As one person said: “if your business is everything, what are you without your business?”
That gives rise to some complex emotions: fear and grief.
Fear of a future without a clear sense of what to do each day, lacking in purpose and drive, and no longer being a useful contributor to the family enterprise.
Fear is one of our most powerful emotions, and our greatest fear is of the unknown.
What comes next?
Golf and lawn bowls? Being put out to pasture?
The feeling of grief is genuine: for something that was for decades a huge part of our lives and now may be irretrievably ‘lost’.
The good news is that there are ways to address this.
Succession (done well) is not an event; rather it’s a process.
With the right preparation, it can be as seamless as the baton handover in the 4x100m race.
And it can’t be hurried – it can easily take several years.
That work pays off when the transition goes smoothly.
The preparation must work across several aspects of the family enterprise.
Not just the structural, organisational and financial, but also the emotional.
And any family enterprise succession plan takes (at least) two to tango; it needs to consider both generations.
What to do now?
The first step is to acknowledge the emotional aspect to succession, and to become OK with it.
Expressing emotions may not come easy for wealth originators and family patriarchs.
They are usually perceived (by themselves and others) as the strong ones in the family who look after others.
Any insecurities and self-doubts are pushed aside.
But they are as human as anyone else; they just may not want to show this to their children.
This is where friends, confidants and advisors can help.
People with the experience and understanding to help work through these issues, and with a level of independence to remain non-judgmental and provide sage counsel.
Conversation Starters:
Do you have a process for succession in your family enterprise?
What if anything is holding things back?
What tensions has either discussion about the process or the process itself uncovered within the family?
Further reading:
Why Leadership Is So Important To Millennials Right Now
Talking about family business: Planning for a successful succession
Succession Planning: It’s A Marathon, Not A Sprint
The Right Ways to Pass the Torch
3 STEPS BUSINESS OWNERS SHOULD TAKE PRIOR TO SUCCESSION PLANNING
Here’s 3 steps business owners should consider when succession planning
Trust more important than ever for successful transfer of family businesses between generations
COVID-19, Great Transfer And Bridging Generational Gap
The Succession Plan: Discovering Its Rewards Through A People-Focused Strategy
Half of Business Owners Do Not Want Their Children to Inherit, Run Business
6 Actionable Steps For Preparing Your Exit Strategy
Lonely at the top: The emotional struggles of wealthy families
Family governance is necessary — but not sufficient — for transgenerational success
Here is more reading on Succession Planning.
