Identify and Develop a Successor

 

In his recent article published with Acropolis Investments, Dan Bean, CMA Partner, provides five key steps to successful preparation for the transfer of leadership in family businesses. In this blog entry, we will discuss Step 1: Identify and Develop a Successor:

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Use a professional assessment firm to administer objective, data-driven assessments to objectively identify the strengths, development areas, and potential of the members of the next generation to be CEO.

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Assessing strengths, development areas, and potential in individuals can be a lengthy and often biased process. Using a professional assessment firm brings in an impartial third-party, something that can be very beneficial when approaching such a sensitive topic in family businesses. The best assessment data provides normed comparisons to other successful executives to see how family members “stack up“ in a more objective fashion. Assessment firms, like CMA, can collect, compile, and analyze data for each potential member and help create development plans for all.