This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Family Business: Effective Succession Planning) is a 21-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
The Family Business sector continues to be vibrant, successful, and ambitious despite tough economic conditions and accelerating pace of change. Family businesses are vital to all economies, offering stability, a commitment for the long term, and responsibility to their communities and employees. In fact, family businesses can be an engine for change and innovation.
However, despite the extraordinary longevity of individual family firms, the average life span across the sector is 3 generations. Only very few get past 4 generations. Not surviving the transition to the next generation may be a sign of a Family Business not achieving their long-term ambitions.
When succession occurs within a company's hierarchy, they are 3 key considerations for the family business:
1. Issues relating to retention of the intended successor.
2. The possibility of jealousy by other employees.
3. How employees will respond to the succession plan.
Achieving successful business continuity is having the right Family Business Succession Plan in place and ready to launch at any point in time. This Family Business Succession Planning presentation provides a good understanding of Family Succession Planning. It also breaks down the 10 Steps to Effective Succession Planning, as delineated below (under 2 categories, Leadership and Ownership):
Effective Succession into Leadership
1. Get experience outside the family firm.
2. Develop a strategic plan for the medium term.
3. Broaden the decision-making process.
4. Strengthen the role of the Board.
5. Clarify what the retiring generation will do.
Effective Succession into Ownership
1. Start early.
2. Communicate, communicate, communicate.
3. Do your homework.
4. Invest in education.
5. Diversify your wealth.
Having an Effective Succession Plan in place is one way of creating the conditions for the next generation to be successful. Adhering to these 10 steps leads family business to achieve a smooth, successful, and effective transition between generations. These 10 steps are discussed in this presentation.
The Succession Planning in Family Business PPT also includes some slide templates that depict the 10 Steps to Effective Succession Planning framework. In fact, you can re-purpose the majority of these Succession Planning slides in your own business presentations.
This presentation redefines effective succession planning for family businesses in the 21st century. It includes detailed templates that can be repurposed for your own business presentations.
This PPT slide outlines critical steps for effective succession planning, emphasizing the importance of early preparation and collaboration among stakeholders. The first point, "Start early," stresses the necessity of initiating the succession process as soon as possible. This proactive approach allows for clear expectations and timelines to be established, ensuring that share transfers occur during the current generation's lifetime, which can mitigate potential conflicts later on.
The second point, "Communicate, communicate, communicate," highlights the need for open dialogue throughout the succession process. Engaging all parties involved fosters a sense of inclusion and ensures that everyone with a stake in the future has a voice in decision-making. This collaborative environment can lead to more informed and agreeable outcomes.
The third point, "Do your homework," underscores the importance of understanding the legal and tax implications associated with succession planning. It suggests that careful study of these factors is essential, as different approaches may present unique challenges based on specific circumstances and jurisdictions. This diligence can prevent costly mistakes and ensure a smoother transition.
Overall, the slide serves as a practical guide for organizations looking to navigate the complexities of ownership transition. It emphasizes that thorough preparation, effective communication, and informed decision-making are foundational to a successful succession plan. By following these principles, businesses can better position themselves for a seamless generational transition.
This PPT slide outlines a framework for effective succession planning, particularly tailored for family businesses. It presents ten actionable steps divided into 2 main categories: Effective Succession into Leadership and Effective Succession into Ownership.
In the Leadership section, the first step emphasizes the importance of gaining experience outside the family firm. This is crucial for developing a broader perspective and skill set. The second step focuses on creating a strategic plan for the medium term, which helps in aligning future goals with current capabilities. Broadening the decision-making process is the third step, suggesting that involving a wider range of voices can enhance the quality of decisions. Strengthening the role of the Board is the fourth step, indicating that a robust governance structure is vital for guiding the transition. Finally, clarifying the role of the retiring generation is essential to ensure that their experience and insights are effectively utilized during the transition.
The Ownership section begins with the recommendation to start early. Early planning allows for a smoother transition and reduces last-minute pressures. The second step stresses the need for open communication, which is critical in managing expectations and fostering trust among family members. The third step, "Do your homework," suggests that thorough research and preparation are necessary for informed decision-making. Investing in education, the fourth step, highlights the importance of equipping the next generation with the skills they need to succeed. Lastly, diversifying wealth is advised to mitigate risks associated with family business ownership.
This structured approach provides a comprehensive roadmap for family firms to navigate the complexities of succession planning effectively.
This PPT slide titled "Succession Planning – Senior Roles" emphasizes the critical importance of having a structured succession plan within family businesses. It presents a clear breakdown of the current state of succession planning among senior executives, revealing that only 15% of respondents have a succession plan in place for all senior executives. A slightly higher percentage, 18%, have plans for most senior roles, while 21% report having plans for only a small number of senior executives.
A significant takeaway from the data is that 55% of respondents have some form of succession plan established, which shows a slight increase from 53% in 2014. This indicates a growing recognition of the need for succession planning,, but also highlights that nearly half of the organizations still lack a structured approach. The remaining 43% of respondents do not have any succession plan in place, underscoring a substantial gap in strategic foresight.
The slide suggests that effective succession planning is not merely a procedural formality, but a vital strategy for family firms to rejuvenate and sustain growth. The transition from one generation to the next is framed as a potential fault line in the business model, emphasizing the risks associated with inadequate planning. This data can serve as a wake-up call for organizations that have yet to prioritize succession planning, as it directly impacts long-term viability and leadership continuity. The insights presented here can guide decision-makers in assessing their current strategies and identifying areas for improvement in succession planning.
This PPT slide outlines 2 critical components of effective succession planning within family businesses, emphasizing the Board's role. The first point, "Strengthen the role of the Board," highlights the necessity for the Board to take a proactive stance in overseeing the succession process. It stresses the importance of ensuring that family members are not only offered positions, but are also adequately qualified for them. This approach mitigates potential conflicts and enhances the overall governance of the succession process. Additionally, it suggests that the retiring generation can contribute significantly by remaining involved as Board members, thus leveraging their experience and insights.
The second point, "Clarify what the retiring generation will do," addresses the need for clear expectations regarding the roles of retiring family members. It advocates for a structured plan that outlines how the current generation should navigate their post-retirement lives. This clarity is crucial for preventing misunderstandings and managing any potential interference from retiring members. Furthermore, it encourages taking on external roles that can provide personal fulfillment and value, thereby enriching the family business ecosystem.
Overall, the slide emphasizes collaboration between the Board and family members during succession planning. It suggests that a well-defined process can lead to smoother transitions and sustained organizational health. The insights provided here are essential for any family business looking to ensure a seamless leadership transition while maintaining harmony among family members.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
Read Customer Testimonials
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for
the customer, Flevy and the various authors. This is truly a service that benefits the consulting industry and associated clients. Thanks for providing this service.
"
– Jim Schoen, Principal at FRC Group
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."
– David Coloma, Consulting Area Manager at Cynertia Consulting
"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.
Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.
many challenges and there is the need to make the right decisions in a short time, with so much scattered information, we are fortunate to have Flevy. Flevy investigates, selects, and puts at our disposal the best of the best to help us be successful in our work.
"
– Omar Hernán Montes Parra, CEO at Quantum SFE
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."
– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."
– Chris McCann, Founder at Resilient.World
"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."
– Moritz Bernhoerster, Global Sourcing Director at Fortune 500
Save with Bundles
This document is available as part of the following discounted bundle(s):
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.
Click main image to view in full screen.
