Succession is the most painful and critical time for family businesses. Less than one-third of family businesses survive into the second generation, and only about 13 percent make it into the third generation.

We’ll explore ownership and leadership succession in family-owned businesses and point out the common perils to avoid. Succeeding at succession is not only important to families but also to communities and the world. 

The moment our parents address us by our full name, we brace ourselves for a potentially challenging dialogue. In family businesses, few conversations are as formidable and emotionally charged as discussing the transition of leadership.

In the lifespan of a family business, appointing a first non-family CEO could be a planned event, but is often required due to unforeseen events, as a bridge from one generation of family leaders to the next, or in response to the increased complexity of the business.

Thinking about a future sibling partnership can be daunting for many family businesses. But sibling partnerships in the family business don’t have to be scary. In fact, we have worked with many successful sibling partnerships that are both immensely rewarding for all involved and deeply impactful for the business. 

Are you in the early stages of your career and considering the prospect of working for your family’s business?

The reality is that deciding to work for your family business is not a straightforward decision. This article presents a roadmap to assist you in your decision-making process.

If you’ve ever welcomed a rising-generation family member into the business, you’ve likely experienced both the excitement and the uncertainty that can accompany this transition.

We often hear comments from the Next Generation members of an enterprising family that indicate they don’t see opportunities to engage: “no one cares what we think, no one listens to me, they don’t think I know enough to contribute.”

Family enterprises matter, not only to the families who own them but to the communities in which they operate and the broader global economy. Their health and growth have a large impact on every country’s economic welfare.

Soccer analyst Cobi Jones once wrote: “You want to teach the next generation so they can learn a little bit faster and a little bit more so everything becomes that much better.”

We’ll use case studies to help demonstrate how to harness the power of a high-performing board to gain insight, build a competitive edge, and create value for family enterprise owners and leaders.

Family business owners tell us over and over again of the tremendous benefits they gain from having CEOs of other companies on their board. They acclaim the strategic stimulation. 

Family businesses with engaged boards perform better, but this does not happen overnight. There are many factors and decisions that go into the evolution of a highly productive board from understanding ownership and governance roles to establishing director criteria and compensation.

At the heart of family business success is a governance process that evolves and adapts to the changing dynamics of the family, the ownership group and the management team as these groups themselves evolve.

Adding the insight and oversight of independent directors to a family enterprise board begins with a solid commitment from the majority owners. That person or group of people must want a strong board with independent directors to meet their business challenges, take advantage of opportunities and achieve their goals.

A family business board’s active involvement can help ensure the company has the right leadership in place today and a strong pipeline for tomorrow.