Enable effective leadership of your family enterprise today and in the future
Family businesses today face the daunting challenge of changing leaders at a time of rapid technological transformation, economic disruption, political dysfunction, and increased competition.
Additionally, research suggests that two-thirds of families intend to share control and decision-making among a group of siblings or cousins rather than vesting in a single controlling owner, introducing additional governance complexity and elevating the importance of effective leadership and coordination across the enterprise.
LGA’s Succession Planning services provide you with the tools you need to ensure a successful generational transition. We often begin by exploring the following key themes and questions:
Leadership selection first requires defining the strategic and organizational needs of the future. What do you want the enterprise to look like in 10 or 20 years, and what type of leadership will be required to get you there?
Leadership selection must be “data-driven” and anchored in your family’s unique vision and values. Do you have enough reliable information about the strengths and weaknesses of successor candidates to vet them fairly? Wise incumbent leaders do not choose their successors on their own. How will you involve the board and other key stakeholders to optimize the selection process?
Succession isn’t just about replacing the top leader. How can succession planning for all key leadership teams be designed and coordinated to set your family enterprise up for long-term success?
Succession is a process, not an event. How can you, as incumbent leaders, plan your departure while supporting new leaders as they take charge?
How does it work?
As we gather answers to these and other critical questions, a clearer picture of future leadership and a feasible process for transition will begin to emerge. Throughout this process, LGA advisors will support you in:
- Reviewing existing contingency plans and creating them if none exist
- Discussing your timetable for transition
- Designing and launching a transition team to manage the complex succession process
- Conducting a strategic analysis of your family enterprise’s future leadership needs
- Designing a comprehensive program to develop and evaluate rising-gen leaders
- Supporting the selection process for future leaders and helping communicate the results of that process with all key stakeholders
- Planning meaningful roles and activities for senior leaders after they have transitioned out of active leadership
How does your family benefit?
Families emerge from LGA’s Succession Planning process well-prepared to manage this complex organizational change, with a dedicated transition team, heightened engagement from all key family and non-family stakeholders, a program to develop and evaluate rising leaders, and a plan to support senior leaders as they transition into new roles.
Connect to learn more about our Succession Planning services
Three third-generation Family Directors of a large enterprising family were attending a global conference focused on innovation and growth. Their 90-year old family had deep pride and gratitude for the success and leadership of previous generations. However, there were no family members currently working actively in the business, and the family’s only connection to their vast operations — which spanned eight industries and three continents — was limited to these three members of the Board.
A successful entrepreneurial couple on a long overdue vacation was reflecting on the future. Together, they led a portfolio of operating companies, an investment portfolio, and a donor-advised fund. They also had three healthy adult children, the eldest of whom was about to get married.
In light of the many crises that haunt the daily news cycle, there is one segment of the corporate landscape that seems to be weathering the storm better than most: family businesses.
“A thorough and powerful work, Generations of Giving: Leadership and Continuity in Family Foundations demands.
Tools for the next generation to approach the retirement conversation tactfully with patience, strategy and smarts.
Succeeding Generations provides a thoughtful and comprehensive look at the sensitive dynamics of leadership succession in family businesses.
Sharon Duguid and Wendy Ulaszek discuss the benefits, techniques and challenges of coaching family businesses.
Consequences of poor succession planning can be harmful both for family owners but also for many key stakeholders like employees, suppliers, and customers.
Nicolas specializes in governance design and succession planning for family enterprises around the world.
Ivan is a Founding Partner and consults with complex family businesses in the USA, Canada, Asia, Europe and Latin America.
Francisco specializes in research and consulting for complex family enterprises. His duties included doing economic analysis and family business education.
Sharon has been consulting and coaching internationally to privately held and family-owned enterprises for over 25 years.