Scorecard Transmission
what is the succession scorecard?
1. the incumbent leader finds a new role
2. a competent and well-motivated successor becomes the new leader
3. the relationship between the incumbent leader and the successor is good
4. good relations exist within the family
5. there is governance of the company and of the family
6. the successor forms a team with non-family members
7. all alternatives are thoroughly studied
8. the family business is professionally run
9. the succession leads to a proper arrangement of the ownership succession
10. the succession is carefully planned
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  jozef lievens
2. a competent and well-motivated successor becomes the new leader
Central in the succession process is that the management of the family business end up in the hands of a competent and well-motivated successor. But what does this mean? In other words : what qualities are required of a successor? Canadian research has shown that the following characteristics are considered important for candidate-successors : integrity, commitment to the family business, ability to command the respect of the personnel, decisiveness and interpersonal skills. Other authors have divided the characteristics of candidate-successors into three categories.

Firstly, there are the leadership qualities which every manager must have, whereby it is important that the successor be a visionary entrepreneur. Secondly come management skills. However, even more is expected from the future leaders of family businesses. Thirdly, they must demonstrate commitment and respect for the family.

Just as important as the competence is the motivation of the successor. Successions work out a great deal better when the candidate-successor has a strong desire to lead the family business and also finds this a fascinating challenge. Moreover, the successor must have had the freedom to choose to join the family business.

Once officially designated as successor, the representative of the next generation is confronted with a new challenge. He must prove himself as the new leader. This does not always go smoothly, because the successor generally finds himself in the phase of succession where he shares the management of the family business with the incumbent leader.

The great challenge for the successor is to strike a proper balance between continuity of the management on the one hand and innovation on the other. Such innovation obviously entails a risk of conflicts with the incumbent leader. Some people believe that crises are unavoidable. Yet only a minority of successors achieve credibility by resolutely innovating. Frequently it is more successful not to make all-too sudden changes, but to introduce innovations around an axis of continuity. In this way, the family network - which is based on trust - remains intact, and the successor will also run into less resistance from the incumbent leader.

Jozef LIEVENS is a lawyer and partner in the Eubelius law firm. He is managing director of the Institute for Family Business and FBNet Belgium. He teaches a family business course at the European University College Brussels (EHSAL). He is a Fellow of the American Family Firm Institute.. His website is: www.familiebedrijf.be
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