Dear Reader, 

“Letting go of power” is the challenge faced by innumerable owner-families when the founder or the leader of the business continues in the leadership role way past his or her age, health conditions, and does not pass on the leadership baton to the next generation. 

One of the highly successful and reputed companies in the construction industry sustained and grew for over 50 years under the leadership of two partners. They had an excellent synergy in running the business. After they passed away, their sons tried to manage the business like their fathers, but could not. Due to a lack of clarity on succession, both the successors, highly educated and experienced, could not manage the business as their fathers and eventually the 50 year old legacy business folded up within 3 years of the senior leaders’ demise. 

When I asked one of the scions what went wrong and he quipped, “our fathers were just not ready to let go of the power and authority. My father led the business till he passed away at an age of 83 and then my uncle (partner) led the business till he passed away at the age of 80. Even in their eighties, they could not decide whose son should lead the business. We sons were executive directors but had limited powers and authority. Once the seniors had gone, we could not run the business together and ended up in a bitter conflict. However, the most important reason for our business failure was the seniors did not let it go at the right time.”    

Such cases are a plenty in family businesses. Then what to do when leaders do not pass on the baton to the next generation? Why succession is such a delicate issue? Let’s read more about the perennial issue of “not letting go of.” 

Happy Reading!