Meeting the Challenges of Succession in the Family Firm

Meeting the Challenges of Succession
in the Family Firm

by Thomas Davidow and Richard Narva

Succession from one generation to another does not happen by accident in a family-ownedbusiness.If you are interested in succession or the continuity of your business, you mustunderstand that planning for that continuity is the critical factor.We believe the failure toadequately address the topic of succession is the primary reason that only 30% of familybusinesses continue into the second generation and that only 10% more continue into the third.

Succession exists as an underlying issue in all family firms, playing a tremendously importantrole in the life of the family, as well as the life of the business.Yet owners and operators offamily enterprises rarely address succession, apparently because of its powerful psychologicalimplications, which can sometimes be overwhelming. More…

Successful Family Meetings: A Critical Foundation for Business Longevity

Successful Family Meetings:Northeastern University
A Critical Foundation for Business Longevity

Family Business Quarterly

One of the best ways for keeping family members committed to their companies, as well as dealing with the inevitable conflicts that get in the way of long-term success, is to hold regular family meetings, argued Drew S. Mendoza, Program Director of the Family Business Center at Loyola University, Chicago.

Mendoza recently traveled to Boston to lead a Half-Day Forum on “Holding Family Meetings: The Whys and the Wherefores” for NUCFB members. Through presentations and small-group discussions, he provided guidelines for “winning at family meetings” to enhance the family spirit that he termed “critical” to keeping the business alive across generations. More…