Family Leadership Strategies

48 While there are many possible reactions to a leadership transition process, the most common behavioral responses can be divided into four categories. This is not intended to place participants in a ‘box’, but to illustrate how families may encounter very different behaviors during the leadership transition process. Keep in mind that these behavioral responses may be encountered regardless of the nature of leadership role (e.g. CEO, board member, family leader) Generally, the behavioral responses of both successors and seniors range from inception — where all parties are not yet on the ‘same page’ — to alignment — where all parties are fundamentally on the ‘same page’. Below we examine the four phases of the transition process that are commonly experienced by families, and identify strategies both for seniors and successors to navigate towards a successful outcome. Successful family leadership transitions entail moving from the point of inception to ultimate alignment, while overcoming reluctance and resistance along the way. Alignment A point of equilibrium is the ideal outcome for all parties. It is the desired ‘end state’ that ensures a higher likelihood of a successful leadership transition. When alignment is achieved: • A well-prepared successor has been selected for a key leadership role who possesses the necessary emotional intelligence, experience, and judgment characteristics required of the role. • Both the successor and senior are in fundamental agreement on the role of the successor in the enterprise, as well as on the future role of the departing leader. • The new leader’s autonomy is well defined and he or she has sufficient authority to carry out the mission. • The timing of the transition is agreed upon by all key parties. • Key parties — including sibling and cousins — have a genuine respect for each other, accept the outcome of the selection process, and agree to support each other during and long after the transition. • Sibling/cousin roles and responsibilities as shareholders, directors, or business executives are clear to all.