The three 'theatrical acts' of the family business leader

LEADERSHIP transitions in family businesses are messy and complex processes that affect the family's social, psychological and economic wellbeing. This process is seldom straightforward, so it is played out over years and even across generations - punctuated with starts, stops and reversals. You would be hard pressed to find a family business in which succession issues are not a major concern, because transitions are one of the main sources of family stress and conflict. All family transitions create change, loss and struggles that seem more suited to Shakespearean dramas than management books.

One reason that family business succession is problematic for leaders is that the succession process focuses on getting the technical business tasks right but often fails to address the family social and emotional tasks. Developing the next generation and selecting the next leaders have strong impacts on the systems. It is not just a business decision. Senior family leaders need a planning model such as the Parallel Planning Process that aligns the family and business for the benefit of both. The Parallel Planning Process addresses the five family business variables of values, vision, strategy, investment and governance. It is culturally sensitive because it is driven by each family's shared values rather than the typical "best practices" model.

Family business leaders frequently see themselves as leaders for life. They want to control all aspects of the family business rather than change their roles based on life cycle, the organisation's needs and family's expectations. Without a clear definition of their own evolving role, each leader's fears, feelings, and dreams often shape how they perform at their job. Family business leaders need the right vocabulary and tools to address the multiple succession transitions in executive, ownership and governance roles that occur in family businesses.