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

3. the relationship between the incumbent leader and the successor is good
A good relationship between incumbent leader and successor is a crucial success factor for a smooth succession arrangement.
Mutual respect and understanding are the most important characteristics of a good relationship. Other important components are trust, support, feedback, learning from one another, fun and friendship.
Most successors say that a good relationship with the incumbent leader must be built up over time. This implies that the relationship evolves from parent-child to that of colleagues in the family business.

The positive relationship between successor and incumbent leader is facilitated by a number of elements. One of these is a healthy sense of self-confidence on the part of the successor. Secondly, the successor must earn the respect of the incumbent leader. It is no less important that the incumbent leaders allow the successor sufficient freedom, which is only possible if the incumbent leader has a positive self-image. This will contribute to the development of a mentor relationship, whereby the incumbent leader can take pleasure in seeing that the successor is acting independently. Both the incumbent leader and the successor can then experience and enjoy a "feeling of continuity" (Kets de Vries).

Research has demonstrated that a connection also exists between a favourable outcome of the succession process and the age of the incumbent leader and the successor. This is most chance for a positive outcome when the age of the incumbent leader is between 50 and 60 and that of the successor is between 23 and 33 (John Davis).

Unfortunately, in some cases the relationship between incumbent leader and successor is (seriously) disturbed. In that event, successors complain about the conservatism, lack of trust and critical attitude of the incumbent leader. A (total) lack of (positive) feedback and recognition as well as faulty communication are also symptomatic of a poor relationship. Such an attitude on the part of the incumbent leader sometimes has deep psychological roots. Regrettably enough, in a number cases this has led to the complete failure of the succession process.

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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