Deciding Who Succeeds
Which biases or decision errors might affect succession decisions about business succession?
There are instances when family businesses ought to be ran by two or more different individuals from the same family because of the massive operation that needs to be shouldered. When situations like these happen, it could be taken into account that there are certain circumstances when family members themselves do not work together well in teams. Relatively, it is through this that business and family commotions occur.
There are also some times when choosing the successor becomes a family issue especially when it comes to the value of ‘trust’. Relatively, not every young family member hopes to run away from the responsibility of handling a family business. There are those who see such appointment as an honor to accomplish. When such idealism spurs among the young ones who are ready and willing to take responsibility of managing the business, friction and competition among the supposed successors occur; this could both create tension and divert the attention from the real goal of appointing successors for the business.
The successors are expected to show exceptional loyalty to the business during the years of service that he or she has given for the organization. The personal attitude and behavior of the individuals are also being given specific attention to. Relatively, the superiors given the responsibility to decide shall base such qualifications based on the long-time service and connection that the candidates have had with the company.
References:
Nemethy, Les (2011). Business Exit Planning: Options, Value Enhancement, and Transaction Management for Business Owners. USA: John Wiley & Sons. p. 178.
