Succession Planning (CONT’D FROM PAGE 24)
skills with customers and vendors. “When the transition takes place you don’t want the new CEO to be saying hello to key individuals for the first time,” said Anto. Share The Burden Suppose two or more siblings seem equally qualified for the CEO role. Can they share the top job? “Co-presidencies happen more often than I ever thought possible when I entered this field,” said Wirtz. “Sometimes it works and sometimes it's a disaster.” Success and failure, added Wirtz, often hinges on care- ful preparation. “A co-presidency can succeed when there are very defined roles and responsibilities for each party, and understandable definitions of success.” The siblings must also be willing to work together and have a history of doing so. In contrast, if there’s already a kind of long-stand- ing rivalry among the siblings, sharing the reins of power can lead to conflict and costly misunderstandings. A cooperative management dynamic may come about even without a formal designation of a co-presidency, not- ed Wirtz. “Maybe Andrew stays heavily involved in sales while Elizabeth ends up as his right-hand person, handling the requisite data analysis.” Whatever the nature of the final decision about who will fill the top role, an active and carefully selected team of advisers can be an invaluable assist. “At the time of tran- sition, the company’s retiring executives might move into positions on the board of directors,” noted Vorhoff. “That
can create tensions that threaten to scuttle the family busi- ness survival plan. “We tend to make up stories about what we think someone else is thinking,” said Kevin D. Quinn, President of Legacy Counsellors ( legacycounsellors.com ). “Mom and Dad might be saying, ‘Our oldest son's going to be devastated if we tell him we really think his young- er sister is more suited for the role of president.’ On the contrary, their son might welcome being relieved of the responsibility of running the company because he finds the required work overwhelming or uninspiring.” When multiple siblings are involved, the more success- ful transitions are characterized by equitable rather than equal dynamics. “Fair treatment takes into account each person’s track record with the business,” said John Frank, CEO of Third Road Management, a fractional financial ser- vices firm ( thirdroadmgmt.com ). “Maybe one sibling has sweated it out for the company every single day for the last 20 years, while another has never worked a day in their life. Succession decisions should recognize these disparate histories.” The business should ensure that the sibling chosen for the CEO role has ample opportunity to learn the parts of the business they have not yet been involved in. Maybe they already have a fairly senior role in sales, for example, but they need to get a good handle in operations and ful- fillment. Too, the nascent CEO must be given time to hone
CONTINUED ON PAGE 28
Serving the North American Corrugated and Folding Carton Industries Since 1985 DRIVE your message to the GREEN... with the credibility of Board Converting News behind it! Sponsor a weekly Monday morning issue blast or we can ‘Tee It Up’ any time you like to our full online circulation of 7,500+. You provide the copy, images and link to a video or website and we’ll do the rest!
Contact Len Prazych 518-366-9017 lprazych@nvpublications.com
26 August 17, 2026
www.boardconvertingnews.com
Made with FlippingBook Digital Proposal Creator