Ed has a tough choice before him  – one that could conceivably fracture his family and wound the family enterprise. His three adult kids, all of them executives under him in the business, are all capable and hard working. Any one of them could serve as CEO when he steps down. Now, with his retirement looming, they’re pressuring him to decide who will lead when he goes. Naturally, he’s worried. What if he makes the wrong choice, and the enterprise founders under his successor? And since the kids are the ones who’ll have to live with this decision, shouldn’t they make the choice?
 
The kids see it differently; Dad’s avoiding the choice because he doesn’t want to be the “bad guy” – but by forcing a choice among the three of them, isn’t it more likely to cause friction in their relationships, and make working together difficult, if not impossible, going forward?

 

What to do?

1. Dad and his children need to sit down and clarify their feelings about why each other thinks the way he/she does.

 

2. While Dad wants the leadership succession decision to be made by his children, he can help them with the decision process.

 

3. All the key stakeholders need to gain a clear understanding of what Dad’s specific roles and responsibilities are.

 

4. The future direction of the business must be defined so the family and the business will have a clearer sense of the knowledge, skills and experience required of the next leader(s). Criteria for leadership can be established.

 

5. Potential leaders must be assessed. Their strengths, limitations, likes and dislikes must be matched to the future business needs.

 

6. Career development planning follows. Candidates build action plans detailing the specific training that they will undertake, with benchmarks included.

 

7. Family members should explore different models of leadership. Co-leaders, multiple leaders, non-family CEOs, and interim non-family CEOs are increasingly common options.