Succession
There appear to be two main factors affecting the development of family business and succession process: the size of the family, in relative terms the volume of business, and suitability to lead the organization, in terms of managerial ability, technical and commitment (Arieu, 2010). Arieu proposed a model in order to classify family firms into four scenarios: political, openness, foreign management and natural succession (See Succession planning).
One of the largest trends in family business is the amount of women who are taking over their family firms. In the past, succession was reserved for the first born son, then it moved on to any male heir. Now, women account for approx. 11-12% of all family firm leaders, an increase of close to 40% since 1996. Daughters are now considered to be one of the most underutilized resources in family businesses. To encourage the next generation of women to be valuable members of the business, potential female successors should be nurtured by assimilation into the family firm, mentoring, sharing of important tacit knowledge and having positive role models within the business (Alderson, 2011).
Read more about this topic: Family Business
Famous quotes containing the word succession:
“A mother’s life, you see, is one long succession of dramas, now soft and tender, now terrible. Not an hour but has its joys and fears.”
—Honoré De Balzac (1799–1850)
“The heart of man ever finds a constant succession of passions, so that the destroying and pulling down of one proves generally to be nothing else but the production and the setting up of another.”
—François, Duc De La Rochefoucauld (1613–1680)
“There is the illusion of time, which is very deep; who has disposed of it? Mor come to the conviction that what seems the succession of thought is only the distribution of wholes into causal series.”
—Ralph Waldo Emerson (1803–1882)