Family Leadership Strategies

15 advisory role for the term of the crisis. It is not advisable for the senior to enter into a ‘power sharing’ agreement, retain legal authority, or engage in any actions which would undermine the authority of the successor. Successor imperatives Successors 1 are the next generation of family leadership — such as siblings and cousins — some of whom may ultimately assume authority and control over the family and its enterprise in executive, management, or board roles. While we may be inclined to think largely in terms of executive roles such as CEO or chairperson, in fact, healthy family enterprises require informed and well-prepared family members in governance roles, such as board directors. Similarly, families themselves require leadership in both formal (family council chair, family leader) as well as informal leadership roles (mentors, advisors, culture carriers) What are the needs and concerns we frequently observe? Successor imperatives typically include: • Pursuing their own interests and passions (which may not align with family needs) • Their leadership readiness and making sure they are ‘following in the footsteps’ of a successful parent, aunt, or uncle • Family support • Authority and compensation consistent with their responsibilities • Family harmony • Fairness of the succession process • Ability to achieve necessary financial, strategic, and governance objectives Having undergone formal education, training, and mentoring, many successors struggle with the notion of them assuming a leadership role in the enterprise. Being responsible for the welfare of extended family members, and following in the footsteps of a successful parent naturally can cause many new family leaders to feel anxiety and uncertainty. For some, it is the achievement of a long–held dream, while for others it is a source of immense stress. Similarly, Differing motivations and needs