The Use of Assessments for Succession Planning in Family Owned Businesses
Denver, CO (PRWEB) July 22, 2009
Strategic Designs for Learning (SDL) has developed a Podcast series on Management and Leadership in Family Owned Businesses. The first podcast in their new series is entitled The Use of Assessments for Succession Planning in Family Owned Businesses and is available for free downloading at iTunes and can be streamed from their website at: http://strategicdesigns.net/podcasts.html
A key area of failure for family businesses is in leadership selection and development for succession planning – only 30 percent of family businesses make it to the second generation and only 12 percent to the third. With the need to identify and retain key leadership, from within or outside the family, early leadership assessment and development is critical—not only for family companies, but for the economy itself.
Succession planning presents a unique set of opportunities for family businesses. While all businesses are susceptible to a loss of focus when there is a transition in leadership, this may be especially true for owner-run enterprises. It can be difficult for an owner to step back and hand the reigns to a successor -- even if that successor is handpicked. In fact, a recent family business survey by Massachusetts Mutual Insurance Company shows that less than 60 percent of small businesses whose owners who were thinking of retiring in the next five years had a candidate selected and a firm transition plan in place.
Valid and reliable assessments can ascertain the developmental gaps and create specific growth opportunities to ensure a successful transition. In family firms, such assessment tools help provide buy-in from family members on executive leadership appointments of family, as well as those positions that may not follow traditional tenure, or may involve employees outside of the family.
In its latest podcast, “The Use of Assessments for Succession Planning in Family Owned Businesses,” http://strategicdesigns.net/podcasts.html SDL answers questions such as:
What kinds of things can derail owners of family owned businesses from properly executing a succession plan?
What are the ways in which FOBs select successors?
What are some of the problems that can arise with this kind of succession planning?
Why and how are assessments especially helpful for FOBs doing succession planning?
Why do you think the percentages are so low for survival of FOBs from generation to generation?
SDL’s unique approach is to address Family Owned Business challenges combing deep expertise in business growth and exit strategy with family owned business reconciliation, succession planning and leadership development / coaching experience.
Strategic Designs For Learning (SDL) assists organizations in assessing, aligning and developing talent. Our specific capabilities include leadership development, executive coaching, team development, and succession - with particular expertise in working with family-owned businesses. We provide a unique integration of leadership, organizational development, coaching expertise, and business knowledge to effectively bridge the gap between business strategy and organizational effectiveness. More information is available at http://www.strategicdesigns.net.
Strategic Designs for Learning/Piermont Advisors
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