In pursuit of a more perfect succession

Transitioning a family business from one generation to the next can be and often is a perilous process. And most family businesses attempt to do it with zero guidelines. 

The problem exacerbates when you’re trying to transition a business from the second to the third generation, or third to fourth. Many family businesses were founded and had success based on the principles and culture that the founder created. But each generation is different, with different ideas of what the culture and principles of the business should look like. Of course, in a changing world, change is always necessary. 

But principles matter, too — especially for a business built on them. In fact, one of the biggest roadblocks I encounter as a family business consultant is the hesitancy of a founder to relinquish control because of fear that the principles and culture that built the business will be lost. The best way to avoid this hesitancy — while ensuring that principles and culture of the business will not be lost — is a family constitution.