LEADERSHIP MATTERS: Ask yourself, 'Can my kid cut it?'

Maybe it’s because we’re fresh on the heels of graduation season, but lately I’ve been thinking about the family business succession issue. You know the question: Is Johnny or Julie ready? Can they cut the mustard?

All of us know horror stories of how perfectly fine enterprises were run into the ground by ill-suited and poorly prepared progeny — of how families and organizations were torn apart in the aftermath of the dismal performance of “the chosen.” Happily, there are also many stories where the succeeding son or daughter took the business to a whole new performance level.

Here are a few thoughts to ensure that your business succession story is a happy one:

• Focus on your business, not on your son or daughter. They are your children. Your business is a different entity. Don’t confuse the two.

• Force objectivity into the selection process. Get third party assessment and counsel. It can save you, your child and your associates a lot of heartache.

• If you are certain that Johnny or Julie is ready and would be the best fit, spend the time to create a clear contract about performance and the myriad other issues that should be addressed like compensation, ownership, your personal role post-succession, etc. What happens if ... ?

Few things can give a parent more pride and pleasure than seeing a son or daughter (or both) succeed with an enterprise in the second or third generation. But few things can cause more pain and suffering than forcing a fit which does not exist.

Kevin Eichner is president of Ottawa University. He invites your feedback to this column. E-mail him at leadershipmatters@ottawa.edu.