A realistic outgoing CEO and family often seek help of outside advisors or an Advisory Board to ensure that job rotation and/or special assignments for successor include situations where s/he will have to seize or assert some authority to be successful. Over time, successor will have built a solid power base from within rather than just being handed power. Perhaps even more difficult to measure, but critically important, is motivation. Does potential successor really want to assume control? S/he might want job, even really want it passionately, but for reasons such as being eldest, for power or prestige it might bring them...or for any number of other reasons... but is it really what they want to do? Fairness = equal performance expectations In obstacles to succession, we noted that parents often felt that fairness meant giving each child an equal share of business when they might not have contributed equally to developing that business. Another aspect of fairness is in area of performance expectation. Unless children earn their position on basis of merit, unless they are expected to be accountable for their performance in business just like any other employee, it will not be possible for them to effectively assume leadership after a succession / transition. So we have found that a key to success is to set standard for performance and accountability from earliest involvement. Less frequently, a parent sets standard much higher for family members rather than lower and we have found this to be just as much of a problem. Set a standard for business - family members must leave family behaviors at home and act like an employee. [Work outside family business for part of one's career really helps here to show standards of behavior that other organizations set.] Graduated retirement... but set and stick to a final date! As time for succession approaches, take longer and longer absences - both for outgoing CEO to get used to being away, for opportunity they offer to evaluate potential successors, and for organization and its customers and suppliers to get used to fact that it can operate under planned new leadership. But announce and stick to a date of withdrawal / succession. As for "outgoing" person having a continuing role, we have seen this happen admirably - and we have seen it fail spectacularly! The key to success is clarity and self-discipline. If an ongoing role is agreeable, define its role, responsibilities, authority and accountability like any other job. Stick to those parameters and make sure that everyone knows that is all you are there for!

Is chosen successor ready and able to run business? If so, how can that be proven? The spousal relationship must be considered. Mom's idea of retirement may not include "sailing a boat around world". In other words, even though wife may not have had a visible role in planning or running of business, she must be included in planning for transition to retirement if process is to be successful. Although it is not frequently discussed, Dad's reservations about his fiduciary responsibility to long term, non family employees should be addressed. Who will look after them when Dad is no longer in business? Dad's friends continue to work in their businesses or jobs Fear of death Reluctance to give up power and sense of control Jealousy / rivalry toward successor Lack of coaching skills - tendency to focus on immediate problems that can be solved rather than "future" problems

Family

spouse's role in business reluctance to discuss future beyond their parents' life fairness versus favoritism fear death of parent(s)

Employees

personal relationship with founder differentiating amongst key managers reluctance to establish formal controls fear of change

Outsiders - Customers, Suppliers

clients or suppliers depend on founder clients or suppliers do not trust or have confidence in potential successor(s)

Deal with obstacles we have outlined here and you will have significantly improved your chances for a successful succession.