Succession
There appear to be two main factors affecting the development of family business and succession process: the size of the family, in relative terms the volume of business, and suitability to lead the organization, in terms of managerial ability, technical and commitment (Arieu, 2010). Arieu proposed a model in order to classify family firms into four scenarios: political, openness, foreign management and natural succession (See Succession planning).
One of the largest trends in family business is the amount of women who are taking over their family firms. In the past, succession was reserved for the first born son, then it moved on to any male heir. Now, women account for approx. 11-12% of all family firm leaders, an increase of close to 40% since 1996. Daughters are now considered to be one of the most underutilized resources in family businesses. To encourage the next generation of women to be valuable members of the business, potential female successors should be nurtured by assimilation into the family firm, mentoring, sharing of important tacit knowledge and having positive role models within the business (Alderson, 2011).
Read more about this topic: Family Business
Famous quotes containing the word succession:
“A mother’s life, you see, is one long succession of dramas, now soft and tender, now terrible. Not an hour but has its joys and fears.”
—Honoré De Balzac (1799–1850)
“We then entered another swamp, at a necessarily slow pace, where the walking was worse than ever, not only on account of the water, but the fallen timber, which often obliterated the indistinct trail entirely. The fallen trees were so numerous, that for long distances the route was through a succession of small yards, where we climbed over fences as high as our heads, down into water often up to our knees, and then over another fence into a second yard, and so on.”
—Henry David Thoreau (1817–1862)
“The usual derivation of the word Metaphysics is not to be sustained ... the science is supposed to take its name from its superiority to physics. The truth is, that Aristotle’s treatise on Morals is next in succession to his Book of Physics.”
—Edgar Allan Poe (1809–1849)