Family Leadership Strategies

12 We believe the challenge of leadership succession is not limited to the CEO role, but includes the preparation of successor family members in a wide range of leadership roles. Therefore, our guidance applies to the development of successor candidates for corporate board roles, family foundation directors, family council heads, as well as CEO and chairperson candidates. By design, we do not provide templates or shortcuts, as each family should be encouraged to create a unique plan that reflects its own needs, while doing the challenging work necessary to make it enduring and ultimately successful. For some this may be modest in scope, while for others it may entail considerable time and energy. Regardless, be assured that while daunting, challenges large or small can be overcome and the foundation for future wealth preservation and family harmony can be created. We begin by exploring and understanding the differing motivations or imperatives of the various stakeholders in the transition process. Not surprisingly, we see similar response patterns within most families, regardless of geography or culture. Recognizing these patterns can help us better understand the motivations of individuals. That said, not every person will react in a similar fashion. An important starting point in transition planning is to identify the key stakeholders in the process, and to begin a conversation on the topic. Often, senior family members, board directors, or next generation family members initiate this dialogue. As we shall see in later chapters, there may be differences in how each individual responds, however an effective starting point is to invite input from all, make no assumptions, and avoid conflict where possible. The objective at this stage is to achieve greater awareness around the need to create a transition plan, not the specifics of the plan. Families should begin by understanding the four primary stakeholder groups that often determine the outcome of a family leadership transition. The key stakeholders in the transition process include: • Senior(s), such as parents, aunts, and uncles • Successor(s), including siblings and cousins • The family, including both immediate and extended branches • The family enterprise, including businesses, foundations, family offices, or family investment companies