What If the CEO Goes Down?
 By
Henry D. Landes
March 2006
A lot can happen in 15 years. One minute your kids enter kindergarten
and the next they are juniors in college. That’s how I feel
about our Family Business Forum which was founded in 1992. Over
the past 15 years, the Forum has “grown up” into a powerful
learning laboratory fueled primarily by the gracious and candid
sharing of our members and clients (see our 15th Anniversary 2006
Forum Program below). It has been a special privilege to walk alongside
the thoughtful and courageous business families who have become
our friends.
Thoughtful because sustainable success can only be the result of
great care; courageous for taking on the delicate discussions always
required to prepare for another generation of success.
In the cycle of intergenerational planning, one of the early and
most delicate discussions centers around the question: What would
happen to our family and business in the event of the sudden death
or disability of the CEO? Families are naturally reluctant to talk
about death and disability, especially if it’s Dad or “Uncle
Don.”
A Crisis Plan, usually initially drafted by the CEO (or other senior
generation owners), often begins something like, “Just
in case something happens to me…” and is very conversational
in nature. (The Crisis Plan is not a legal document; it is not an
estate plan, a will or a financial plan, although it needs to be
in alignment with them.) The development of a Crisis Plan provides
a framework for families to discuss how to manage a crisis in the
short-term so that long-term succession remains viable. Business
families who avoid this difficult conversation may leave both family
and business in jeopardy.
Hopefully, this Crisis Plan will never be needed, but “just
in case” you are prudently protecting your employees, your
customers and your family.
Since I try to “practice what I preach,” I recently
wrote our Crisis Plan in consultation with my Board of Advisors,
followed by a family meeting with my wife, Jane, our two daughters
and son-in-law. While our family meeting (like many of yours) was
initially a bit uncomfortable, it evoked thoughtful questions which
improved the Crisis Plan AND drew us into a larger discussion about
my vision of the future and the aspirations of our children.
Successful multi-generational business families have the capacity
to “see around the corner,” to anticipate and plan for
the inevitable, natural transitions as well as the occasional crises.
If you haven’t done so already, I encourage you to get moving
on your Crisis Plan, the first of many discussions which will help
your family and business thrive over the long run.
Many people my age are thinking about a change of pace or scenery.
Frankly, I’d love to be doing what I’m doing for the
next 15 years—standing in humility and awe at the privilege
of assisting business families in leadership transitions. Thanks.
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