Family Leadership Strategies

47 There are a number of complex challenges with family leadership succession as the process moves towards handover. It is neither an easy process for those relinquishing leadership, nor for those taking it on. While this has always been the fate of family-owned enterprises, changing social norms and longer life expectancies render this process more complex now than ever. There are four broad key areas of leadership transitions that require agreement between seniors and successors. These are: • Timing of the process and handover transition • Role selection and definition — clearly defining who is responsible and for what • Autonomy — the degree to which key decisions can be made, by whom, and subject to which specific governance requirements • Mutual respect — how all parties to the process exhibit respect, listen, avoid bias, and communicate openly A board of directors is often helpful in establishing agreement and monitoring progress toward these key areas as they add experience and objectivity to the process. 4 Navigating challenges and opportunities