Kicking the Can Down the Road – No, Not the Federal Budget, I Mean Succession

The government’s decision to avoid further conflict on the debt crisis by putting off key budget reform until next year, reminds me of family businesses who put off succession planning until it reaches a crisis.

Many family businesses avoid succession planning discussions and allow it to just happen. However, unlike the budget, succession planning does eventually happen in one way or another.

The biggest reason we avoid succession planning is it forces us to discuss the most sensitive issues and make even more difficult decisions. This often leads to increased tension and hurts relationships within the family. The perception is that the business consequences of avoiding the issue aren’t worth the personal consequences. More…