Build an All-Star Team: Choosing the Best CEO for Your Family Business
At Stranberg, we understand that transitioning the CEO in a family business is one of the most critical—and emotionally charged—events in the company's life. It's not just about selecting a leader; it's about ensuring the continuity of your family's legacy, protecting your employees, and safeguarding the trust your customers and community have in your business. Navigating this process is no easy feat, but with a clear plan, it becomes a manageable, even empowering, experience.
?? Who Gets to Play? ??
Think of your family business as owning a football team. Just because you own the team doesn't mean you're qualified to be in the starting lineup. There's a big difference between ownership and leadership.
Owning a football team comes with its own set of essential questions:
But ultimately, your goal is for your team to win the Super Bowl. To achieve that, you need players who are highly skilled, experienced, and capable of delivering results on the field.
In the same way, your business needs a leader who can take it to the next level, even if that person isn't a family member. Your CEO succession plan should be about fielding the best possible "players" to ensure your business remains competitive, respected, and thriving in the marketplace.
The Stranberg 3x3 CEO Succession Planning Process
Our 3x3 process is built on three guiding principles that inform three critical steps. Each piece works harmoniously to provide clarity, direction, and peace of mind during this crucial transition.
?? The Three Principles ??
The CEO Must Be Qualified for the Role.
Just like owning a football team does not qualify you as a world-class quarterback, being an owner of a family enterprise does not qualify you for executive leadership. To safeguard the interests of the owners and everyone who depends on the business, your next CEO should have the skills and experience to handle the challenges ahead.
Qualifications Are Based on Strategy.
Qualifications are entirely dependent on your goals. Just as an MVP baseball player probably isn’t the best choice to be your next quarterback, your next CEO needs to align with the arena in which your business competes. This will depend entirely on the nature of your business and what you and your family want from the business.
Strategy is Determined by Family Vision and Values.
You build a football team to win the Super Bowl. You own the business to profit and participate in the story of a famous team. Why are you in business with your family? How does your family benefit from owning the business, and how do you participate in its story?
领英推荐
To successfully navigate leadership transition, families need to be able to answer these questions and use them to determine what they need from the business financially, socially, and emotionally. Once needs are defined, you can craft a strategy to achieve them he strategy guiding the business should align with the vision and values of the family owners.
? The Three Steps ?
Align Family Shareholders on Business Strategy.
The process starts by ensuring that family members are on the same page when it comes to the company's direction. This might mean holding meetings or workshops to align on what the future of the business looks like.
Derive CEO Qualifications from Strategic Alignment.
Once there is consensus on the strategy, the qualifications for the CEO become clear. We then create a detailed position description based on these agreed-upon priorities.
Evaluate Candidates Against These Qualifications.
Every candidate, whether internal or external, is measured against the predefined qualifications. This step ensures that the chosen leader is not only capable but the best possible fit for the future of the business.
Why the Stranberg 3x3 Process Works
This process is rooted in one simple truth: The future success of your business depends on choosing the most qualified person for the role of CEO. This is not about fulfilling personal aspirations or maintaining tradition—it's about ensuring that your business continues to grow and thrive.
We've seen too many family businesses struggle because they focus more on family dynamics than on selecting the best leader for the job. Our role is to help you stay focused on what's best for the business. In some cases, this may mean looking externally, where fresh perspectives and diverse experiences can bring significant value to the business. But many times, the right person is already within the organization, and we can help identify and develop these internal talents.
However, none of this works without the family's commitment to the process. Consensus is key. At Stranberg, we guide you through every step, but it's the family's willingness to align that ultimately determines the success of the transition. Your active participation is not just encouraged; it's crucial to the success of the process.
Conclusion
CEO succession planning in a family business can be complex, but with the right approach, it's an opportunity to set your company on a path to long-term success. By focusing on qualifications, strategy, and family alignment, the Stranberg 3x3 process ensures that your next CEO is not just a leader but the right leader for the future of your business.
We're here to help you navigate this transition with confidence, ensuring that your business continues to grow and reflect the vision and values of your family. Let's work together to put the best possible leader at the helm of your company.