|Circle||Stage of Development|
|1. Family||1.1 Young Business Family|
1.2 Entering the Business
1.3 Working Together
1.4 Passing the Baton
|2. Business||2.1 Start-up|
|3. Ownership||3.1 Controlling Owner|
3.2 Sibling Partnership
3.3 Cousin Consortium
- The family develop a family council that focuses on the needs of the family.
- The family develop a family plan together.
- An external facilitator for the family council will allow all family members to participate without having to be the chair. They will help the family to deal with conflict and follow standard procedures. This is a key starting point as a family meeting can help people to raise important issues so they can be addressed and reduce the likelihood that conflict will paralyze the group or stall the process.
- The management development team develop a business plan, budget, strategic plan and contingency plan, often for the approval of the board or under the direction of the board.
- The management development team evaluate potential successors for management, including family and non-family members.
- Management promotion and succession avoid nepotism and promote the most qualified candidate.
- The human resources systems and management processes reduce the potential for favouritism of family employees.
- Identify the board’s role and responsibilities.
- Develop the structure and frequency of meetings.
- Recruit outside family members for people who are experienced, independent, have a strong track record and have no conflicts of interest with the business or family (Gersick et al).
- The board develops or approves the strategic plan, participates in the management development plan, and prepares the leadership continuity plan and the contingency plan (ibid).
- The board works with a professional team of advisors to prepare the succession plan.
- The professional team is led by a succession planning consultant to ensure that the board receives a balance of professional services and that does not include any advisors.