Only 10% of family businesses survive to the third generation. There is no one universal answer to why this happens. The fault lies neither solely with the individual leadership, nor with the management of the business as an organization. Rather, success is concerned with the way individual family leadership interacts with the organization of the family business as a system.
Since success or failure depends on how individuals interact with the specific family business, it is essential to understand how the particular family business works as an organization and the specific main challenges facing the business and family. Detects the problem. Once identified, you can focus on specific shortcomings in the family and business and take actions that will enable you to avoid future threats. Discovering the root driver of the family business succession problem is not so easy, as it can be hidden under more urgent, though less important, daily management emergencies. To recognize succession planning problems before a crisis strikes, you need to look for signs of potential planning failure.
Here are the top fourteen signs of a business succession plan that will likely fail.
Matthew Erskine is the Managing Partner Erskine and Erskine,