Passing the baton: Creating value through CEO succession at family businesses
A thoughtful CEO succession plan in a family-owned business can both protect the family’s vision and achieve institutional renewal.
The act—or art—of CEO succession represents a major inflection point for family-owned businesses (FOBs). Consider the case of a multibillion-dollar European family conglomerate that has effectively navigated five cycles of CEO succession in its 150 years. Its sixth-generation CEO describes the identification of successors (and their preparation for the role) as the single most important choice the business makes: “It has such a big impact. If it goes well, it has a huge positive impact. And if it goes badly, the impact can be equally negative.”
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SOURCE: McKinsey.com