Succession planning is one of the biggest governance challenges I observed in the family business I analyzed. The second generation still leads the company with strong involvement, and while the third generation has started working there, their future roles aren’t clearly defined. It feels like everyone knows succession will happen someday, but there’s no real structure or timeline. This creates uncertainty and not just for the successors, but also for employees and external advisors. I’ve come to realise that succession isn’t a single event, but a process that needs early preparation and open communication. According to Le Breton-Miller et al. (2004), successful succession involves aligning values, developing talent, and planning leadership transfer long before it’s urgent. For this family business, introducing formal mentoring and clearer planning could turn an emotional topic into a strategic opportunity.
Reference:
Le Breton-Miller, I., Miller, D. and Steier, L.P. (2004) ‘Toward an Integrative Model of Effective FOB Succession’, Entrepreneurship Theory and Practice, 28(4), pp. 305–328.