(by Michael Louie. This post originally appeared as an article in Succession Today)
Trust and respect. These are earned and not things that are inherited.
There are two edges to this sword. Children should not be entitled to “own” and operate a business, just because they were born to the right family. The best candidate to run a business, may not necessarily be a family member. Generally, a family member would be preferred. The other side of this same sword is that the children of your family do not have to be exactly like you in order to earn your approval and consequently your trust and respect.
We all face the differences between the generations. The Gen X, Gen Y and Millennials are very different than the Baby Boomers. This same statement would have held true one full generation ago. However, each brings unique skills and perspective to the world and to your business. With guidance, the business can be operated and flourish as control and operations transition between generations.
Learn, think, apply!