Handing over the reins
Grooming plans are meant to help potential successors gain practical experience and knowledge, as well as confidence as managers and leaders. This process also helps the next generation earn the respect of employees and senior managers while they are working toward acquiring new skills. Another important aspect of the grooming plan is to get the next generation working with other non-family managers to slowly transfer allegiance to the successor. All of this should, in turn, help the current owners feel more comfortable and confident when it comes to relinquishing control.
Grooming plans should be used in conjunction with a set of family business rules outlining the employment, management, and ownership criteria for family members. Having clear requirements can help remove emotions from decision-making, which should allow for better business decisions, while reducing conflict amongst family members.
Danielle Walsh is founder of Walsh Family Business Advisory Services, a consulting company specializing in assisting family-owned and operated businesses navigate the rough waters of management and ownership succession. She is a certified public accountant (CPA), chartered accountant (CA), and holds certificates in Family Business Advising and in Family Wealth Advising from the Family Firm Institute (FFI). Walsh is also president of the Ottawa chapter of the Canadian Association for Family Enterprise (CAFE). She developed her philosophy and desire to help family businesses from her father, Grant Walsh, who has worked as a family business practitioner for the last 25 years. Walsh also currently teaches the first family business course offered at the undergraduate level at Carleton University in Ottawa. She can be reached via e-mail at danielle@walshfbas.com.
