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POWER AND SUCCESSION (SET2) - Coggle Diagram
POWER AND SUCCESSION (SET2)
Power
: the capacity to influence the behavior of a person in an organization
POWER
KNOWLDGE
Set of competences that the organization is able to use
Individual
Education (explicit, codified)
Experiences
Organizational
Organizational memory (routines, processes)
AUTHORITY
The capacity to influence the others because of the legitimized and accepted position
Ownership, Governance, Management are the
role
in the business hierarcy
LEADERSHIP
Someone that has followers
Effective leadership
: people voted them
Visionary leadership
: they lead people to their vision
Social leadership
: with aim of having a positive impact in society
The development of authority
Timing
Planning
The development of knowledge
What mix of analysis
What experiences?
How much control do you have?
The development of leadership
How can leadership be developed
What mix of leadership do you need
What mix of leadership do you have
Succession process
: action, events and developments that affect the transfer of
power
and managerial control
across generations
2) Training and development
3) Partnership
1) Owner-managed business
4) Power transfer
Critical aspects of succession management
Proper communication of the process of transfer of power
Resist to the desire of having a “clone” and strengthen the managerial team
Management of the relationships with stakeholders
Top Management Team’s “emotional detachment” from the firm
Management of the cultural and motivational gaps between successor and incumbent
Streamline the process of transfer of power
Plan and manage the succession process
Coach and mentor the new generation
Define and disseminate the principles and guidelines for the involvement of the new generation
Proxy of success in firm succession
Stakeholders satisfaction (but also family satisfaction)
Change in business profitability
Annual increase of ROE
Collaborative relationships among family members
Costumer satisfaction
Successful succession
Training & development of potential successor
Start the training activities of potential successors before he joins the business
Selection of successor
Formalize objective criteria for selection
Succession planning
Define the guidelines
Ensure communication and sharing of the plan
Plan the entry
Closure of process
Formalize the new roles the incumbent and successor and define a period of "collaboration in the top"
Contiinue the assessment of successor
Factors preventing intra family succession
Relation factors
Non family members
Conflicts between incumbent/potential successor and non family members
Lack of trust
Family members
Lack of trust in the potential successor(s)
Conflicts/competition in parent child relationships
Lack of trust
Financial factors
Inability to substain tax burden related to succession
Inability to find financial resources o finance the cost of hiring and the exit
I
ndividual factors
Incumbent related factors:
- personal sense of attachment of the incumbent with the business, - unexpected premature loss of the - incumbent unforeseen remarriage, divorce, or
Successor(s
) related factors: Low ability, Dissatisfaction or lack of motivation
Context factors
Change in the business performance
Decrease in the scale of the business
Loss of key customers
Strategic issues in FB
Internal conflicts
Relationships with external managers
Family and business growth