Number 2 begins now

You should begin training the family member who is going to take over now. Many times I have gone into a company and Dad is really frustrated because Son or Daughter are not ready in his opinion. Usually it is because he has been treating them like a Son or Daughter rather than an employee/heir apparent.

If they are in the training phase and in some department or function within the company, they should be held to the same level of competency that any employee would. If they are acting like children or cannot do the job, either transfer them or discipline them or maybe both. They will never learn if you coddle them and allow them to be not held to the same level of maintaining the rules as anyone else. If they are doing well, promote them like anyone else, pay them like anyone else and give them the praise they deserve.

After working in all the functions in the business in one capacity or another, then bring them along with increasingly responsible positions. Remember you should have already told your top management what you are doing. They should know your intentions. That may create a problem. If you have someone really good and you really trust them and they are doing a great job. increase their responsibilities too. Probably, have your heir apparent report to them to learn how to manage and gain the respect of others. Your family member may become frustrated because they have to follow someone else's orders and, after all, they are family, they are flesh and blood. Well too bad. Until they act like and perform like the best employees you have, they should not be promoted or given any special treatment. I promise you, the children of owners that have been left to their own devices loose the respect of the employees, never get the respect of suppliers/bankers/investors and they never experience the business like they should. Sure it is tough, but was it easy for you? Did you have to work hard for what you have? So should the kids.

Finally, if the family member is anxious to take over, you should be excited for them and glad they are so interested, but do not give in. Make sure, no matter what, they are fully integrated, have the respect of their peers and are as knowledgeable as anyone else in the company on its products/services, methodology, strategic plan, strategic initiatives and the budget/financial statements. They can do it, but you must be the overseer of their training and make sure they become an owner at the right time.

What do you think?