Illustration by Ruth Macapagal The transition of a family business to the next generation is a critical juncture that can determine its longevity and success. With over 83 percent of our clients worldwide being family business owners, my team and I at the Tom Oliver Group frequently encounter the complexities of this process. A common issue is the denial among current leaders about the readiness of their successors to take over the reins.
This denial can lead to significant challenges. However, with the right approach, these hurdles can be navigated successfully. One frequent oversight is the failure to recognize when successors lack the necessary skills for leadership.
This oversight is often compounded by a cognitive bias known as the Dunning-Kruger effect, where individuals with limited ability tend to overestimate their capabilities. Recognizing this gap is crucial, and with the right guidance and training, even those lacking inherent talent can evolve into effective leaders. Stephen Schwarzman, chair and CEO of the Blackstone Group, famously said, “Great executives are made, not born.
” This sentiment resonates deeply with our experiences, where we have equipped individuals worldwide to not only lead their family businesses but also to elevate them to market, regional, or even global leadership statuses. In larger family-owned conglomerates, it is often recognized that the family gene pool may not provide a viable leader for every key position. This acknowledgment lea.