Want a smooth family business transition? Embrace strategic planning.

Succession planning is hard enough, but as family businesses navigate the transition of leadership from one generation to the next, too many forget or forgo an essential part of the process: the strategic plan. As suggested in an excellent article, Strategic vs Business Plan in Family Business Magazine (May/June 2023 issue) by Charlie Carr, there is often tremendous resistance of families to engage in a strategic plan. 

A strategic plan is a long-term approach to the business — it helps anticipate both threats and opportunities to the business in the future and sets a longer-term strategy for dealing with all kinds of variables. But more than that, a strategic plan can and should be an integral part of succession planning—and in my opinion, is comparable to writing a will. Like a will, a strategic plan gives the outgoing leadership some control over what will become of their business after they leave it. The incoming leadership too can benefit by putting their stamp on the way the business will be handled going forward. With a strategic plan, family businesses can preserve their legacy while remaining relevant and profitable in the future. 

As a family business consultant, I believe a strategic plan is essential to a successful transition, as it addresses some of the major issues that come up in succession planning. Here are some of the ways a strategic plan can help.