1 what stage of the family business lifecycle is your family business in?
the stage of family business is family partnership its run by a father and son
2 in what way does the stage reflect a problematique and challenging stage?
The owners and managers of family businesses face many unique challenges. These challenges stem from the overlap of family and business issues and include communication, employing family and nonfamily members, professional management, employment qualifications, salaries and compensation, and succession.
3 how the stage of your family business lifecycle contribute affect or adore the business and ownership dimensions of your business?
Family businesses differ from other ventures. However, also within its group we find different forms of family businesses. To differentiate them, we have developed the 3-dimension-model with the dimensions ownership, investment, and governance. Those three dimensions are based on a theory or logic: complexity (ownership), portfolio theory and risk diversification (investment), and agency theory (governance).
4 what transition do you envisage for your family business lifedcycle stage in the coming next 10 years?
Many business owners presume that the transition will be instantaneous. However, research has shown that successful transitions actually take anywhere between 7 to 10 years.
Business leaders shouldn’t be so concerned with having an exact replica of themselves, it is illogical and unnecessary. A different leader, with new intentions can actually be beneficial for the business. Of course, welcoming a different leader may require to adjust and/or change organisational set up of the family firm.
Communication both internally and externally are key to a smooth transition and allows everyone involved in the business to develop relationships with the successor.
Another key consideration is the defining principles and guidelines for the new generation, you need to be able to prove that your choice of successor is the right one. Think about creating a job specification that the new leader must meet, like any standard job interview – this will help to legitimise the final choice for the new leader.
Managing the cultural gaps between the successor and incumbent is very important. There could be multiple generational gaps which could affect company culture. Try to foresee these gaps and prepare for them as much as possible.