Summary
The article discusses how family-owned businesses plan for passing leadership to the next generation. It looks at examples from Walker's Shortbread in Scotland and Dr. Bronner's in the U.S. Proper planning can prevent disputes and ensure smooth transitions.
Key Facts
- Rupert Murdoch recently handed over his media business to his son Lachlan, highlighting the need for clear succession plans.
- Walker's Shortbread uses a "cousins consortium" model, allowing family members to join and have input in the business.
- External experts are involved in Walker's Shortbread's succession planning to bring in professional advice.
- Emotional dynamics can complicate succession in family firms, requiring separation of family and business roles.
- A study indicated that over 40% of business leaders haven't identified successors, risking business instability.
- Dr. Bronner's learned from past mistakes and now plans better for leadership changes, avoiding past tax and operational issues.
