Management News

For a smooth glide

In place, a family business can survive for many generations. In a family-owned business, the influence and control of the founder is usually considered indisputable and the whole business revolves around him or her, which should not be the case ideally. But there are times when such leaders have to step aside and let others carry on their legacy. Here are a few common situations when succession planning can be thought of:
• The founder is not keen to hand over but has to, due to age and other pressures
• Some members want a professional CEO; others want to run it themselves
• Multiple generations, cousins, in-laws, public shareholders, and professionals are already present in some position or the other
• The founder is no more and there is no one ready—a family member or professional—to take charge
• Change in shareholding patterns—where there is one large shareholder and the rest are scattered
• Ownership and management need to be separated and a professional CEO is to be brought in
• Choosing between two equally qualified cousins