Whether you are the owner of a family business or a key member of leadership, choosing your successor is one of the most important decisions you will ever make for the future of the business. The right person can help your business continue to thrive and grow, while the wrong choice could lead to disaster.
To find the right successor you must begin by evaluating the organization’s needs. The successor must be someone who will meet the needs of the company, but also understand and adapt to the needs of the family. One point that can’t be overemphasized is that being a relative should not immediately qualify you to fill top leadership positions. To ensure success for every party involved, the hiring process for a successor must be thorough and not rushed.
So, what qualities should you look for in a potential successor? Throughout this article, we’ll look at what qualities should be evident and what qualities you want to avoid when seeking your next family business leader.
The Right Qualities for a Successor
When it comes to choosing a successor, there are certain qualities that you want to look for in a new leader. The list of ideal qualities could go on and on, but it is good to do a reality check and determine what is truly essential for your specific business.
Here is a list of qualities that you may want to consider. Select which ones are must-haves vs. nice-to-haves. If you start a search with the expectation that you’ll find someone with all these characteristics, you will probably be disappointed – just remember that no one is 100% perfect!
Professional presence- Business acumen
- Superb Communication Skills
- Creativity
- Problem Solving
- Relationship Builder
- Mentor/Coach
- Passion for the mission
- Resilience/Perseverance
- Decision-Making Abilities
- Motivator
- Empathetic
- Integrity
- Ownership of Responsibilities
- Adaptable
- Team Building Abilities
- Delegation Skills
- Emotional Intelligence
- Conflict Resolution
- Time Management
- Inclusivity and Diversity Awareness
- Courage and Risk Taker
- Approachable
- Open to Feedback
- Humility
- Inspirational and Positive
Professional presenceQualities To Avoid in a Successor
In addition to looking for key qualities in potential successors, it’s also important to consider which qualities may not serve your business well in the long run. Here are some qualities to watch out for and a few examples of how they might present themselves in an interview.
Arrogance – Dominate the conversation, talk excessively about themselves, interrupt the interviewer and make insensitive comments about others.
Poor Time Management – Blame-shifting and excuses related to projects that were not completed on time. A constant emphasis on the need for perfection that causes delays in projects. Can’t articulate how they manage their time, but rather give generalizations about multitasking abilities.
Lack of Relationship Building – No mention of collaboration or conflict resolution. A lot of “I” and very little “we”. Focus on the negative in people rather than the positive.
Resistant to Change – Dismissive of new ideas, processes or technology. Skeptical about anything that’s not traditional.
Unadaptable – Listen for the words “always” and “never”. Are they set in their ways which are always right in every situation?
Family Member as Successor
If you decide to pass your family business down through generations by selecting a family member as your successor, then there are additional areas that need to be considered beyond those discussed above. It is important that any potential successor has received comprehensive training in order for them to understand how all aspects of the business work before taking on such an important role within it.
It can be wrongly assumed that the next generation has a good grasp of the whole business because they have been around it so much. Even if the next generation has good relationships with people in various departments, it’s important that the upcoming leader can confidently oversee those departments and relationships when he/she becomes the boss.
Lastly, it is important for the next generation leader to understand the weight of the responsibility they are taking on. The success of the business will fall on their shoulders and that is a hefty task, with a lot of people looking to them to make it work. If they don’t have appropriate passion for the business, the pressure to succeed could lead to a quick burnout.
We’ve dedicated an entire article to questions a family member can ask themselves if they are thinking of being the successor. It provides practical topics to think through as they decide if they are the best person for the role.
Find the Best Successor
In conclusion, choosing a successor is no easy task, but when done correctly can ensure continued success for your business well into the future. If an outside recruiting partner would be a welcome help, we’d love to help you find the best person for the job – whether it’s an internal candidate or someone from outside.
No matter who does the recruiting, it is important that the new hire possesses the passion and skills to further the success of the business. Sadly, statistics show that less than half (46%) of family businesses make it through second-generation transition successfully. Beat those statistics by having a succession plan firmly in place!