Flairworks Management Consultancies

  The subject of generational succession in family businesses remains a complex undertaking, mainly because of the family factor and the associated interplay of emotional and personality dynamics. It also remains a key determining factor in the operational longevity of these businesses. In spite of its importance, a substantial ratio of family businesses does not have a succession plan. Recent research in the UK has shown that “over two thirds of family business owners do not have a succession plan detailing what will happen to the business and who will run and own the business after their death”. In the GCC the estimate is that, around 50% of family businesses that don’t have a succession plan. 4 Key Issues in Succession Planning Developing and implementing a succession plan is not a single event; rather, it is a process that can span several years in the making. Some of the succession stages “take place before the successor actually enters the business as a full-time employee.” T...

Family businesses are inherently complex and they increase in complexity with time because of the interplay between three factors: the family, the ownership and the enterprise. This leads to reduced clarity, misunderstandings, tensions and even conflicts. Hence the importance of having clear communication between these factors. 6 Reasons Why Clear Communication is the Key? Building Trust : Clear and organized communication between the family members and with their business is key in creating trust. This trust forms the foundation for cooperation, that enables them to collaborate more harmoniously, even during challenging times. Setting Boundaries : Family dynamics can sometimes interfere with business decisions. Clear communication helps establish professional boundaries, ensuring that family relationships don’t negatively affect the decision-making process. Managing Family Conflicts : Clear communication can also contribute to reducing family conflicts, and help in managing them when ...