Strategies for Sustainable Succession Planning in Family Business

2013 ◽  
pp. 150-162 ◽  
Author(s):  
Lucy Tan-Atichat ◽  
Joseph F. Aiyeku
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Succession Plan ◽  
Five Factors ◽  
Thai Government

This study investigates the extent of influence of succession planning on Thai FOBs focusing on SMEs, and the attributes/characteristics of the successors to achieve a successful family business. SMEs were identified using Thai government classifications. A total of 449 usable questionnaires were obtained from Thai FOB owners/managers in Bangkok and vicinity. Most of the firms surveyed were small FOBs. The results show that there is a higher degree of success between FOBs that have succession plan and those that do not. The results also revealed five new factors concerning Thai family-owned businesses (SMEs) succession planning. The five factors are shown in this chapter.

Strategies for Sustainable Succession Planning in Family Business

2013 ◽  
pp. 1507-1519
Author(s):  
Lucy Tan-Artichat ◽  
Joseph F. Aiyeku
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Succession Plan ◽  
Five Factors ◽  
Thai Government

This study investigates the extent of influence of succession planning on Thai FOBs focusing on SMEs, and the attributes/characteristics of the successors to achieve a successful family business. SMEs were identified using Thai government classifications. A total of 449 usable questionnaires were obtained from Thai FOB owners/managers in Bangkok and vicinity. Most of the firms surveyed were small FOBs. The results show that there is a higher degree of success between FOBs that have succession plan and those that do not. The results also revealed five new factors concerning Thai family-owned businesses (SMEs) succession planning. The five factors are shown in this chapter.

scholarly journals BISNIS KELUARGA TANPA “PUTERA MAHKOTA”

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Andreas Heryjanto
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Owners ◽  
Family Conflicts ◽  
Succession Plan ◽  
The Family ◽  
Family Harmony ◽  
Business Succession ◽  
Fatal Consequence ◽  
Family Business Succession

<p>Business viability is a main goal of family business. However, leaders are usually reluctant to let<br />off their power, even tend to be in charge beyond the age of retirement. The most fatal consequence of<br />reluctancy to hand over the leadership to his successor is the occurrence of "Prince Charles Syndrome".<br />Viability of family business requires a mature succession plan, maintaining family harmony, the<br />responsibility and unity of ownership, and maintaining superior resources. Succession plan becomes a<br />crucial issue in this family business. Succession planning should be a priority, by clarifying who the real<br />"Crowned Prince" appointed to continue the family business. In order for business viability to running<br />well, the second generation as a business successor must be well prepared, i.e. the process of the tacit<br />knowledge transfer, the full involvement of the next generation, and the planned regeneration. It is<br />needed of the willingness and magnanimity of current business owners and leaders to gradually let off<br />business de-facto and de-jure to the "Crowned Prince". With well-prepared succession planning, it will<br />avoid potential prolonged family conflicts.<br />Keywords: Business viability, succession plan, family conflict</p>

scholarly journals Cultural Specificities of Succession’ Failure and Success in the Context of Unlisted Moroccan Family-Owned Businesses

2021 ◽  
Vol 12 (1) ◽  
pp. 130
Author(s):  
Azzeddine Allioui ◽  
Badr Habba ◽  
Taib Berrada El Azizi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Large Family ◽  
Family Businesses ◽  
Structured Interviews ◽  
Succession Plan ◽  
The Family ◽  
Moroccan Family ◽  
Cultural Constraints ◽  
The Relationship

The purpose of this research aims to study the relationship between the cultural specificities of the Moroccan context and the success or failure of succession strategies (in terms of planning and process) in the case of Moroccan unlisted family businesses. Our study covered a sample of 20 unlisted Moroccan family businesses, 8 of which are SMEs, 6 are large firms, and 6 are VSEs, through a qualitative research based on semi-structured interviews with the managers of family businesses. Our results explain the influence of Moroccan cultural specificities on the success or failure of the transfer of family businesses. Indeed, these influences essentially manifest themselves in three antecedents: the succession planning that already reflects the intention to pass on the family business to the next generations, either by having a well-prepared plan, or an absence of a succession plan that leaves things to chance; the succession process that is influenced in part by specificities of Moroccan culture by granting privilege to the eldest male in the succession, and in another part this process becomes more rational by giving credit to successors competent to take over the family business in the case of large family businesses; and cultural constraints that are manifested mainly by the taboos surrounding the death of the predecessor and religious principles that similarly explain the different configurations of success or failure of the succession strategy of the family business. An extension of this work could be a multi-factor analysis in future researches.

Succession planning in William Jackson Food Group

2015 ◽  
Vol 5 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Lorna Collins ◽  
Barbara Murray ◽  
Ken McCracken
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Large Family ◽  
Food Group ◽  
Family Businesses ◽  
Content Type ◽  
Succession Plan ◽  
Succession Process ◽  
Conversation Piece ◽  
The Uk

Purpose – This paper is a conversation piece which highlights the ways in which succession planning in large company might be handled. The discussion focuses on Christopher Oughtred the former Chairman of William Jackson Food Group, one of the largest family businesses in the UK. The paper aims to discuss these issues. Design/methodology/approach – This paper presents a conversation with a panel of leading family business experts and a family business owner. The paper presents latest thoughts on family business research, insights into a real family business succession project and reflections from a former Chairman on the succession process. Findings – Findings highlight possible stages and requirements of a successful transition and succession plan. Also suggestions for areas of further research are presented. Originality/value – The conversation recorded in this paper represents a rare opportunity to obtain reflections and insights on a succession process and how it was managed in a large family business. The conversation also highlights the kinds of challenges often experienced by family businesses during transition and succession. As a case study this is an exemplar of how succession might be planned.

El Batraa manufacturers for chemicals and paint

2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ashraf Sheta ◽  
Sandra Wael ◽  
Mariam Soliman ◽  
Nour Abdallah ◽  
Rovan Bahnassy ◽  
...  
Keyword(s):  
Emerging Markets ◽  
Family Business ◽  
Master Of Business Administration ◽  
Business Decision ◽  
Content Type ◽  
Succession Plan ◽  
Academic Level ◽  
The Family ◽  
Future Strategy ◽  
Main Protagonist

Learning outcomes • Develop an understanding of how to institutionalize a family business. • Define the dynamics of the family business decision-making process in emerging markets. • Assess the cultural differences between founders and successors in an emerging markets context. • Identify the role of intergenerational differences in deciding the future strategy of a family business in emerging markets. Case overview/synopsis This case addresses El Batraa Manufacturers for Chemicals and Paints S.A.E., a privately owned family business operating in the coloring paste industry in Egypt. The main dilemma of the case is the existence of different visions about the business between the old and new generations. Also, it addresses the importance of understanding family dynamics to resolve existing challenges. The necessity of having governance in a family business is highlighted, together with a clear succession plan to secure family unity and business sustainability. Sandra the main protagonist within the case is trying to arrive to a resolution that can guarantee a motivating environment for her to join the family business. Her main dilemma is whether to choose to join the family business, with all the existing challenges or not. Accordingly, she proposes some steps to make the family business more appealing. Complexity academic level Under Graduate and Master of Business Administration level. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

Successful family business succession: Utilizing peer groups for critical leadership skills development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jenell Lynn-Senter Wittmer ◽  
Clinton Oliver Longenecker ◽  
Angie Jones
Keyword(s):  
Leadership Development ◽  
Family Business ◽  
Succession Planning ◽  
Leadership Skills ◽  
Peer Groups ◽  
Family Businesses ◽  
Business Leaders ◽  
Content Type ◽  
Critical Leadership ◽  
Business Succession

Purpose The current study explores the necessary leadership skills required for leadership succession in family businesses as well as best development activities for each skill. The current study provides suggestions for best practices in developing and utilizing peer groups as a leadership development method. Design/methodology/approach A needs assessment was conducted by surveying 150 family-business leaders. Leaders were asked, “What are your most pressing leadership development needs for your organization as you move toward succession? A follow-up question was then asked: “For each of these skills, what method would best help develop this skill for family business leaders?” The responses were content analyzed, placed into themes, and rank ordered. Findings High agreement amongst business leaders was found as eight leadership skills were cited by high percentages of family-business leaders. Leaders overwhelmingly reported peer developmental activities as being the best method for developing these skills. Originality/value Succession planning in family-businesses is critical as many family business fail to make it past the first or second generation. However, little research explores what specific leadership skills are necessary for optimal succession. As well, many leaders in public organizations seek individual methods of development, such as executive coaching, whereas family business leaders seek group activities to learn with/through their peers.

Europa: Managing Growth

2012 ◽  
pp. 1-12
Author(s):  
S. Manikutty
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Family Resources ◽  
Discount Stores

The case deals with the issues in managing the growth of a family business engaged in retail and discount stores in Chennai. It highlights one of the strengths of family businesses, namely leveraging family resources into the business. The case also deals with issues of succession planning in family businesses.

scholarly journals Family Business Succession in Different National Contexts: A Fuzzy-Set QCA Approach

2019 ◽  
Vol 11 (22) ◽  
pp. 6309 ◽  
Author(s):  
José António Porfírio ◽  
Tiago Carrilho ◽  
Joseph Hassid ◽  
Ricardo Rodrigues
Keyword(s):  
Family Business ◽  
Fuzzy Set ◽  
Qualitative Comparative Analysis ◽  
Family Businesses ◽  
Expectation States ◽  
Succession Plan ◽  
Limited Applicability ◽  
Expectation States Theory ◽  
Business Succession ◽  
Family Business Succession

Family business succession is a key topic that has attracted considerable attention from researchers, especially in the last decade. Most research, however, is based on case studies with limited applicability and fails to present comparisons across international contexts that highlight differences in succession processes. We apply expectation states theory to analyze a sample of 128 observations in two Southern European countries, Portugal and Greece. We study configurations of successors’ characteristics, family business characteristics, the existence (or absence) of a succession plan, and successors’ motivation to succeed. Our aim is to reveal how these issues affect successors’ perceptions of preparation for succession using fuzzy-set qualitative comparative analysis (fsQCA). Family businesses are a dominant organizational form all over the world, and succession issues are critical for the sustainability of family businesses. Our findings suggest that different configurations of conditions influence successors’ perceptions of preparation for family business succession. Moreover, we verify the influence of cultural differences on these processes. This research helps fill a gap in the literature, showing the role of a set of characteristics in successors’ perceptions of preparation for family business succession. Our conclusions provide insight into the types of policies that can promote successful family business succession.

Passing on the legacy: exploring the dynamics of succession in family businesses in Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma AbdulRahim Chang ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Design Methodology ◽  
Family Firms ◽  
Family Members ◽  
Family Businesses ◽  
Content Type ◽  
Traditional Family ◽  
Interviewing Technique

PurposeBy taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.Design/methodology/approachThe study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.FindingsThe findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.Research limitations/implicationsThe study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.Originality/valueExploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.

Motives and Outcomes in Family Business Succession Planning

2013 ◽  
Vol 39 (2) ◽  
pp. 299-312 ◽  
Author(s):  
Michael Gilding ◽  
Sheree Gregory ◽  
Barbara Cosson
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Succession ◽  
Family Business Succession
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