Preparation is key to successful changeovers at family companies. Early on, the next generation should know about expectations and teamwork
Chances are good that a long-lived family business will eventually be led by a sibling team. But despite sharing common values, siblings face real obstacles when cast in the top leadership spot. Sure, perceptions of parental favoritism and longstanding rivalries can make cooperation difficult. But the biggest challenge? Almost all second-generation sibling teams must somehow adapt a decision-making process dominated by a single autocratic leader into one that works for two people. The key is preparation.
So how do you prepare sibling teams capable of this challenge? When your children are young, define your expectations in written form and formalize procedures that all employees, family and nonfamily, are expected to follow. If you wait until your kids are ready to assume leadership roles to do this, it may engender conflict rather than prevent it. Do it before they enter the business, and all involved will know what's expected and have a chance to grow into their roles
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