Pitfalls
Bad timing
Age matters in transitions. Research into adult development has shown that transitions are smoother when both generations are “in synch” meaning that each generation is ready to make the personal changes in their lives that are at the heart of transitions. For example, the transition between seniors aged 60-70, who are looking to build a structure for the later stage of their lives and a next generation between 35-45, is likely to be easier than if the next generation was 19-25. The reason is that early adulthood (19-25) involves exploring options for the life you want (where to live, relationships, career options) so settling for a career in the family enterprise may seem unattractive when there are still many avenues to explore. However, as mid-life approaches (35-45), there is a stronger inclination to make choices and have a more established life structure. The general point is that transitions in a family enterprise are easier if well timed and it is wise to pay heed to this reality when planning when to start..Resistance and denial
Resistance to change is fine; it’s a personal gauge that protects individuals and an enterprise to avoid the threat of too much change happening too quickly. Change in a family enterprise – or at least planned change – is often relatively slow and the change strategies need to accept the reality that there is only so much change the key players are capable of coping with. In most cases it’s probably best to hurry slowly.Denial is an enemy of change. For example, the leader who still believes on their own immortality, the next generation who do not want to take responsibility while enjoying the fruits of the enterprise, or the legacy business that no-one can quite admit is in desperate need of restructuring can all hold back any effort to make transitions because the costs are felt to be too high (facing up to mortality, settling down or the fact that the business into which so much effort has been poured has run its course).
In transitions its best to work with resistance (just avoid it overcoming the desire for change) and try to face down denial. One way to do that is to have well planned transition or succession strategy that makes everyone feel less threatened about entering in to the process. See the Essential Stages in Creating a Succession Plan
