If you have any experience or knowledge, please share your ideas.
One important part of training successors in the family business is to insure that they also get some work experience at other firms so that they can learn about other industries and see how things are done in different cultures.
Colleagues,
Succession planning for effective continuity and enhanced family business performance is a troubled area, even though such businesses account for most of employment in my country (Otoo et al, 2009) and globally (Morris et al. 1977; Ket de Vries, 1993; and Leibell, 2011)
Consensus in literature suggests that successful family succession planning is dependent on the following:
a) Family dynamics in relation to share holding in the business (Giarmarco, 2012; Freedman, 2012)
b) The intentions of the founder at the start of the business and expected exit strategy developed (Langevang et al. 2012; DeTienne and Cardon,2012)
c) The persona of the founder and decisions he takes in relation to his role post succession (DeTienne and Cardon, 2012; Davis, 2005)
d) The culture of the people ( Sharma and Rao, 2000; Oi, 2012)
e) The qualities of the successor ( Chaimahawong and Sakulsriprasert, 2013)
d) The legal framework in the area of operations with regard to property transfer.
Truly this analysis is difficult and decision making on the same is extremely difficult. It is easy for decision parameters to change easily, from my experience.
Thank you
References to help you
Allen,M.P., Panian,S.K., and Lotz, R.E. (1979) ‘Managerial succession and organizational performance. A recalcitrant problem revisited,’. Administrative Science Quarterly 24(2), pp. 167-180.[Online]. Available from: http://www.jstor.org/stable/2392492 (Accessed: July 19, 2013)
Chaimahawong, V and Sakulsriprasert, A.(2013) ‘Family business succession and post succession performance: Evidence from Thai SMEs’, International Journal of Business and Management,8(2), pp.19-28. Canadian Center of Science and Education. [Online]. Available from: http://dx.doi.org/10.5539/ijbm.v8n2p19 (Accessed: July 17, 2013)
Davis, J. (2005) ‘Changes at the top. Are you ready?’ Behavioral Health Management 2005, pp.23- 29
DeTienne D.R. and Cardon, M.S (2012) ‘Impact of founder experience on exit intentions’ Small Business Economics (2012) 38, pp. 351–374[Online] Available from: DOI 10.1007/s11187-010-9284-5 or http://link.springer.com.ezproxy.liv.ac.uk/content/pdf/10.1007%2Fs11187-010-9284-5.pdf
(Accessed: July 18, 2013)
Freedman, E (2012) ‘ Building the talent pipeline for future leaders’ Financial Executive, November, 2012,pp 89-91 [Online] Available from: http://outlaw.digimaxisp.com:2052/ehost/pdfviewer/pdfviewer?vid=5&sid=6b64d4b3-2c9a-4300-9a58-7498ef100487%40sessionmgr198&hid=128 (Accessed: July 14,2013)
Giamarco, J. (2012) ‘ The three levels of family business succession planning’ Journal of Financial Service Professionals / March 2012, pp.59.-69
Kets de Vries, M.F.R. (1993). ‘The dynamics of family controlled firms: The good news and the
bad news’. Organizational Dynamics 21:59-71
Langevang,T., Namatovu, R and Dawa,S.(2012). ‘Beyond necessity and opportunity
entrepreneurship: motivations and aspirations of young entrepreneurs in Uganda’ International Development Planning Review, 34 (4), pp.439-459.
Leibell, D.T.(2011) ‘Succession planning. Family dynamics play an important role in the success and failure of family businesses’ Trusts and Estates/trustandestates.com, pp.16-22. Penton Media Inc.
Morris, M., Miyasaki, N., Watters, C., & Coombes, S. (2006).’The dilemma of growth: understanding venture size choices of women entrepreneurs’. Journal of Small Business
Management, 44, pp. 221–244
Oi, M.(2012) ‘Adult adoptions: Keeping Japan's family firms alive’ [Online] Available from: http://www.bbc.co.uk/news/magazine-19505088
Otoo, K.N., Osei-Boateng, C., and Asafu-Adjaye, P.,(2009) ‘ The labor market in Ghana’ Accra, Ghana: Labor Research and Policy Institute
Sharma, P. and Rao, A.S.(2000) ‘Successor Attributes in Indian and Canadian Family Firms: A Comparative Study,’ Family Business Review 2000 13: pp.312-330
Dear sir, thank You very much for your tips and bibliographic database for this topic.
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