In the last article, Bringing People Back: Does it Help With Succession?, we talked about whether or not it’s wise to welcome back the prodigal son, daughter, very special key manager, et al. Let’s assume the answers to the questions we raised all indicate that it’s time to bring someone home again.

In May, 1961, John F. Kennedy challenged us to send someone to the moon and return them safely to the earth. In essence, re-entering the succession atmosphere can be just as dicey. While some will rejoice, others are just as likely to cringe in fear or disgust. So how do we get our people home safely?

Once you’ve made your decision, there are several ways that work well. All involve and require communication with others who will be affected by your...Read More

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The story of the prodigal son is one that many of us are familiar with. You recall he’s the one who said give me what I’ve got coming because I want out of here. The father did, the son left, and the rest is history. But let’s read “son” in a much broader context.

Every once in a while, somebody you really want to keep leaves the organization. In a family-owned business, it may be a family member or a non-family member. As you can imagine, that does make a difference.

Sometimes people who leave want to come back. There appear to be all kinds of legitimate reasons for justifying bringing that person back. Business knowledge and expertise, succession path, and family harmony are just a few that are top of mind.

In deciding whether or not to bring someone back into the...Read More

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There is an organization on the North American continent that has been in the family for almost 24 generations. It began with a small group of stakeholders scattered up and down the eastern seaboard. They got together years ago and turned talk into action by creating an organization that could be handed down from one generation to another. Their plan was brave, courageous, and bold.

Their plan required people, time, and money. Everyone involved had something at stake in the outcome. Everyone knew that succession success required all ten of the integrated components that we’ve talked about so often.

Their first step was to clarify owner intent and motivation. They drafted a couple of documents that specifically addressed issues related to shared power and authority. Some authority was left purposely vague because they realized that po...Read More

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Dear Ricci:

My relationship drastically dissolved with my son several years ago after circumstances caused me to fire him rather than losing half of my management team. He has been full of resentment, claims he was “thrown under the bus” by jealous managers and has blamed me personally for ruining his career. I realize now that I botched it completely – instead of taking the time to investigate the situation, I reacted hastily and made a poor decision.

Recently I shared this difficult realization with my son and we have gingerly begun bridging the chasm that was between us. We would both like to give it another try and bring him back into the business, however I still have many of the same managers working for me. My son is willing but nervous and so am I. Is there any chance this can be successful? ...Read More

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Dear Ricci:

After working together for nearly 40 years in our family business, my 82-year old father has finally agreed to retire and turn over operational control to me. Achieving this has been a long and difficult process, and severely strained our relationship. He felt “pushed out,” ignoring his failing health and inability to keep up with our growing business demands. Ever since we signed the final purchase agreement, he has been avoiding me, refuses to take my calls or visits to his home. I miss him and I know he misses me too, as we used to speak to each other every day at the office.

What can I do to bridge this gap without forcing a negative confrontation, which is just the opposite of what I want to achieve? G.L.

Dear G.L.

You are not going to be able to force your father to com...Read More

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Dear Ricci:
All my life I have been taught... face your fears, you won't know unless you try, you can be anything you want to be, don't let fear stand in your way... all the fearful things you mentioned...fear of loss, humiliation or rejection, pain, or financial ruin. I say to myself, "See, you should have never tried. All your fears became reality."
 
I read about it being OK to fail, but I never thought it would feel THIS devastating. I am certainly not able to let it roll off my back just yet. Now, I am in a place where I feel that my "safe place" felt much better than my "failure place."
 
So, when one does fail... what's the recovery process? Is there one? I assume it's personalized to each experience. J.D.

Dear JD:
The encouragement I have to shar...Read More

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In my previous two posts, How to Leave a Legacy - Planning and How to Leave a Legacy - Continuous Learning, I suggested that leaving a legacy to and through your family and business requires planning for the development of the next generation as well as your continuous development. It also requires you to cast a vision for the fulfillment of the development of the next generation. You have almost always had a vision of where the business was going. As a business leader, your ability to see the big picture is the most important attribute you possess.

Allow me to encourage you to also be the visionary for your family. Many business owners have wasted or never cultivated their visio...Read More

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In my last post, How to Leave a Legacy - Planning, I said if you desire to leave a legacy to and through your family and business, you have to engage in planning. And the focus of that post was on the development of character and values in your next generation family members. Now, obviously, this requires that you have some character and values to pass on. I meet with many business owners that hold their children to a much higher standard than they hold themselves. I remember sitting in a meeting with a father and son when about 30 minutes after scolding his son for using tobacco, he said, “pass me that can of dip.” Rest assured, the character flaws in you and me are there and our children will pick up on them.

If we are going to leave a legacy by planning and ...Read More

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My favorite presidential accomplishment is the construction of the interstate highway system by Dwight D. Eisenhower’s administration. I just returned from a family vacation that was made much easier by the interstate system and am grateful for it. Eisenhower is also credited with saying “Plans are nothing. Planning is everything.” Planning was certainly necessary to construct the interstate infrastructure that we enjoy in our country. In the same way, if you desire to leave a legacy through your family and business, you have to engage in planning. It will not happen by default. Left to chance, the legacy you leave will be a tragedy.

I’ve had the experience of hearing many men on their deathbeds talking about their regrets – never have I heard anyone say they wish they had spent more time on their business. If you are fortunate, you will dis...Read More

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Would you ever put your child in the driver’s seat of a car and send him/her off without any practical experience? Or, would you ever buy an automobile without taking it for a test drive? Naturally these are rhetorical questions. But I cannot begin to tell you how many business owners I have encountered in my career who have done the equivalent when it comes to planning for the succession of their business.

Instead of just hoping your successor can effectively lead your business after your retirement or death, give him or her a test drive. What I mean is give your successor the opportunity to lead and make decisions to determine if he or she can actually do it while you are still involved. This also offers you an opportunity to see your successor in action which can lead to additional coaching and training opportunities that can help hone their business and leaders...Read More

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Recently a business owner approached me with the following: “I am considering transferring some company stock to my son and possibly some talented managers.” He stated, “each person has made significant contributions to the business and a few of them feel they have already earned the right to some of the stock via sweat equity.” He asked, “should I gift or sell the stock to them?”

As you can probably imagine, there are other questions that need to be answered and other issues to consider before reaching the best answer. Is the issuance of stock a mechanism to reward individuals for past performance and to retain them for the long haul or are you in desperate need of having qualified individuals in place to protect the viability of the business in the event of your death (for example, a franchise of some sort whose agreements require ex...Read More

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This happens many times each day across the country and often the departing employee is leaving you to go to work for one of your competitors. The question is: are you protected? Have you instituted good business practices that address this very issue?

You may ask, what do you mean? Well, here it is. Have you implemented a Non-Compete Agreement that can be upheld in your jurisdiction? If the answer is no, then you might want to get to work immediately with your attorney and other advisors.

There are many ingredients that constitute a well thought out and defendable Non Compete Agreement. However, it is imperative you seek the guidance of an attorney who has experience and can reference local case law that can be referenced in the event you find yourself in a dispute with an employee. Some of the important ingredients to consider are:

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