Business Continuity is the Prize of Succession (Part II)

Baylor

Legacies Newsletter
by Ernesto J. Poza

Succession is a Transition in Ownership and Management

Research conducted by Louis Barnes at Harvard indicates that when transition occurs only in management or ownership and not concurrently in both, tensions are amplified. I have experienced these tensions, for example, in successors who have assumed CEO responsibilities, but still do not own significant equity. I have also observed these tensions in families where a younger daughter, for instance, and not the oldest son becomes CEO. This “inverted hierarchy”, as Barnes calls it, means that in the transition, the management and owning family roles are reversed, posing adaptation challenges to the successor, the siblings and other family members. More…

Mission Statements

by Leslie Dashew

In our last issue, I wrote about Vision Statements. There is often confusion between the concept of a vision statement and a mission statement. A mission statement is a statement of purpose: it describes why an organization exists. A vision statement, on the other hand, describes a desired state for the organization at some time in the future.

Mission statements help to clarify and focus the attention of those who belong to the organization. Business mission statements help employees understand why the business exists and can help them to understand how their role helps to contribute to the company’s purpose. For example, a company’s mission statement might read: The Company provides premier precision manufacturing solutions for our customers in the diesel engine and affiliated markets. Through our collective efforts, we will achieve strategic corporate growth and attractive capital appreciation for all stakeholders. We accomplish this by operating our businesses with a foundation of ethics, customer focus, developing and respecting our employees, and operational excellence. More…