As a coach, I help individuals finetune their emotional and social intelligence skills so they can better navigate all sorts of change, conflict, and dynamics. As a Transition Guide, I have the privilege and unique perspective of working with both owners and successors during one of the most life-changing journeys for both: a business transition. In this article let’s look at the value of emotional intelligence for owners in business transitions. In my next article, we’ll examine how emotional intelligence applies to successors in business transitions. Using quick searches on
Transitioning a business to a successor is easy for owners who aren’t interested in the future of the companies they’ve built and believe that leaving behind a trail of broken relationships is just the price of a business transition. Business transitions are not so easy, however, for owners who care deeply about their relationships with the most important people in their lives and want their companies to flourish after they leave. We are privileged to work with owners in the second group and designed The Transition Roadmap Developer™ (TRD) to
“Mom, I need to tell you something… ” These words would set off alarm bells in most parents’ heads, but the ringing can be deafening when they come from the child you always dreamed would take over your business. That dream can shatter when the sentence that follows is: “Running this company is an amazing opportunity for someone, but that someone just isn’t me.” If it’s been your dream to put the successful business you’ve built into the hands of your child(ren), it’s natural to be disappointed or even angry
I attended a workshop for business owners recently and heard many conversations about the search for successors. Several mentioned that because they couldn’t find “the right successor,” to continue their legacy, they were resigned to selling to an outside third party. When these owners explained to me why their children, business partners or longtime key employees weren’t “right,” I left these conversations wondering what ever happened to curiosity? I was tempted to ask, “Are you really open minded in your search for a business successor?” As I recall these conversations,
Believe it or not, tire alignment comes to mind when I see owners stuck between the reality of a business transition with its confusing number of options and cacophony of opinions and the ideal—a business transition that 1) meets their goals and 2) maintains their most important relationships. Mechanics align our cars’ tires so that we reach our chosen destinations safely. As Transition Strategists, we use The Transition Compass to help you reach your chosen business transition destination with your relationships intact. The Symptoms of Misalignment Perhaps you recognize one
The HBO series Succession is a dramatization of the transition of a business from one generation to the next, a morality tale about what can happen when a Generation 1 owner fails to create a coherent plan to pass a business to members of Generation 2. It has been successful with both critics and audiences, receiving nominations for 25 Emmy awards. Millions of viewers have watched the Roy family do everything wrong, destroying relationships while driving the family business to the brink of disaster. Succession planning done right may not
We’ve all heard the horror stories about family business transfers that create irreparable damage—parents estranged from children, children at war with siblings, and standoffs that endure for generations. It doesn’t have to be this way! We’ve worked with many families who have moved through business transitions and kept their relationships healthy. While every family is unique, we recommend that leaders take 4 steps to a successful family business transition. 4 Steps to a Successful Family Business Transition: The Foundation for a Successful Transition The transition of a business to an
As a longtime advisor who helps business owners craft plans to put their companies in the hands of successors, I’m often asked questions about how companies can be transitioned to their adult children. Before moving forward, I suggest that there are at least four questions to ask before passing a business to the next generation. Business transitions from one generation to the next are complicated because so much is at stake: owner’s financial and emotional wellbeing, the company’s success, and the wellbeing of the entire family. Yet the goal of
Resilience is a quality we cultivate in ourselves and try to instill in our businesses because the greatest life or business plan in the world can’t prepare us for every tough challenge or unforeseen situation. Well, the ongoing interruptions in the supply chain, the war in Ukraine, continual mutations in the COVID virus, a tight labor market, and rising rates of interest and inflation certainly check many of the tough challenges boxes. What lessons did you learn from the COVID pandemic and how have you positioned your company to meet
