Proceed with Caution: You Are Now Entering The Succession Zone!
 By
Henry D. Landes
April 2001
A friend of mine tells the story of being "handed the wheel"
a little too soon. He was 3 years old, and he was with his family
on a trip in the American West. With great energy, the boy in the
front seat was simulating "driving," manipulating an imaginary
steering wheel, complete with sound effects, no doubt.
The father, who was driving on a straight stretch of deserted highway,
smiled and said, "Here, Son, how would you like to drive the
real car?" The boy could hardly contain his exuberance; a moment
later he was perched on his father’s lap. His little hands
grabbed the wheel and gave it a hard yank to the right, just like
he had been doing with his "pretend" steering wheel.
The car careened toward the ditch, raising a cloud of dust as the
dad quickly regained control while braking. Amid laughter, the boy
was evicted from the driver’s seat and relegated once again
to his imaginary world of fire engines and race cars.
On the other hand, I recall how a 75-year-old client responded
when asked when he planned to relinquish the title and responsibilities
of president—"I don’t think my son is quite ready
yet." The son was 55!
Somewhere between these two extremes is a balance in personal growth,
development and a readiness to take over. Indeed, timing is of the
essence in The Succession Zone, that pivotal period in a family
business when the older generation passes on the primary duties
of running the business to the younger generation.
We believe that one of the most effective ways to prepare for this
vital time is to talk with and learn from other families who already
have successfully navigated the oft- turbulent waters of The Succession
Zone. Dealing with this type of issue represents the "heart"
of our Family Business Forum. While each family is unique and must
do its own work, our members find many issues and challenges in
common. "You are not alone" rings true.
Like many of our Forum members and clients, the Rauch family of
M & C Specialties, Southampton, is using our Policy Handbook
for Business Families, a practical, how-to handbook designed to
help business families develop their own policies and plans.
Since I helped the Rauches launch their family meetings last year,
they continue to use the Handbook effectively—along with Ivan
Lansberg’s book Succeeding
Generations—as they gather monthly for "second
moving to third generation" meetings. Join us on May 10 to
hear how the Rauch family is finding their way through The Succession
Zone.
That’s what the Forum is about—business families learning
from each other. Tell us what you are learning about succession
through your family meetings. What has been useful to you? What
can we highlight from your business family?
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