The occasions of the past year have made it a lot more clear that all companies ought to have a near-term company continuity plan and a long-lasting succession strategy, since circumstances can change quickly and in manner ins which are beyond a family’s control.
Yet, just one-third (34%) of US household companies say they have a robust, documented and communicated succession strategyin location. And, while many family magnate have at least an informal succession strategy in place, just a minority have completely embraced the need to not just have a strategy, however to document it and successfully communicate it to all necessary celebrations.
Despite their various opinions, 60% of US participants believe that member of the family increased their communications about business during COVID. However, just 40% think the crisis magnified communications in between various generations of member of the family.
Those companies that have not yet begun planning for succession could be vulnerable to substantial threats– threats such as fractured household relationships, a follower who does not have the capability or credibility to lead and reluctance from external stakeholders, who might not wish to work with an organization that isn’t governed by a great succession plan.