Family Leadership Strategies

18 secondary parties — such as suppliers or communities. Families should bear in mind everyone will naturally have a keen interest in the transition process and outcome, particularly as it affects their interests. That said, engaging a small number of key stakeholders is the aim, keeping the process as simple and conflict-free as possible. Other stakeholders, such as employees of any family business may only be informed once the family leadership transition plan has been decided. A prelude to examining the transition imperatives of the enterprise is to assess the state of the family business or enterprise. Is it in decline, crisis, static, or growing? Are there strategic initiatives that must be undertaken to position the business for the future? What technological, economic, or demographic trends will help or hinder growth? What type of leadership skills and experience is needed and where? Addressing such questions serves to frame the primary outcomes for the businesses, but is also useful in defining key leadership candidate qualifications. Family enterprise imperatives typically fall into the following areas: • Continuity of business • Predictability of family leaders’ actions • Minimal personal disruption • Job security • Ability to achieve necessary financial, strategic, and governance objectives In summary, the process of balancing the imperatives of differing groups is most often one of achieving compromise. A compromise should not, however, imply abandoning the family’s core principles and values. A positive outcome optimizes the overall interests of the family while remaining true to its values.