Succession planning in family business : the case study of Ashrafieh

Abstract

Succession planning is one of the most critical functions of an organization. This is the process that identifies and assesses the appropriate candidates to handle future responsibilities and to fill key business leadership positions. In family business, the succession process is defined as the transfer of managerial control from one family member to another. My thesis sought to fill a gap in the family business succession planning literature by seeking to gain an understanding of the key factors that develop it successfully. Is your family business a family-first business or a business-first family? Succession planning for family owned businesses differs from planning for other types of businesses largely because the family business must incorporate family issues into its thinking. It considers the preparation not only for a business strategic plan but for a family strategic plan as well. When should family business succession planning begin? Early preparation and development of successors is one of the most important characteristics associated with managerial transition of family business. Do offspring have the necessary qualities of leadership? Proper education and on-the-job training for family members doesn't guarantee that such family members will ever be suitable for the business high level positions. As per methodology used in this research paper, primary data collection will be through observation and interviewing while vital secondary data will be collected from past researches and studies. Previously, researchers observe that only a small percentage of family firms survive the transition to the second generation and many intergenerational transitions fail soon after the second generation takes control. Thus, this thesis will identify some of the key issues and factors that contribute in improving the family business succession planning practices.