Issue link: http://cp.revolio.com/i/1059224
A Q+A with Dr. Richard Marcus Richard Marcus, Ph.D. is a Business Psychologist and Executive Coach specializing in family-owned businesses, with over 20 years of coaching experience working with senior-level executives. www.richardmarcus.org. I n sigh t s f r o m N ex t- G en er a tio n O w n er s FAMILY FIRST Q: How do you assess the next generation for their leadership potential? A: The first step is understanding what the company wants to do and what the company's goals are. From there, you can determine the strategic competencies required in the leadership of the company. This can be done formally or informally, but once you understand what's required in the leadership roles, then you can assess who in the family has the necessary skills and experience to fill that role. The best predictor of future performance is past performance. Q: What are some of the challenges associated with transferring ownership in a family business? A: The challenge with assessing the next generation of future owners is that some family members will have the necessary skills to be a great leader, and others don't. You should lay out the succession plan and identify those members of the family that have a proven track record and the necessary capabilities, and then evolve them into the leadership role as you would with anybody moving into a leadership job. You need to pay attention to the business imperatives and go the extra mile to make sure the family members are supported in a way that they are getting the career growth they need and following their interests. Family comes first, but you can't let the business suffer. Q: When should companies start talking about succession planning? A: Succession planning is a life- long activity. There's an element of needing to groom the future leaders of the company and this starts early on because you need to encourage them to gain the necessary experience to be able to grow into the leadership role. Then there's a moment, usually a few years out, where the owner determines a hard stop for themselves and then it's time to put a concrete plan into place. This also depends on where the company is going and what the goals are for the business. Q: In your experience is there an advantage for future owners to leaving the family business, gaining experience at another company, and then bringing that knowledge back? A: It depends. There are some businesses that are insular and staying in that same company will benefit you. But if I had to generalize, it can always be good to gain experience elsewhere so you can understand all sides of the industry. It all depends on the experience you need to be a successful leader in the future. For example, if your company is growing exponentially, then having experience at a larger company will prove to be useful. If your leadership role is negotiations based and building relationships and having street smarts and business acumen is advantageous, then staying at the same company and gaining skills there can give you an edge. Q: What's the one piece of advice you'd offer AD independent distributors who are looking to make the transition from one owner to the next? A: Establish a very clear vision on where the company is going. Take the time to learn what each family member's career aspirations are and what skills they need to develop. Have the difficult conversation about succession planning early on; it might be uncomfortable to think about, but at the end of the day it will be a weight off your shoulders to have that planning behind you. 54 | AD Today 2018 | OWN IT