Does Family Culture Matter When It Comes To Family Business Succession?

When it comes to succession, family leaders will often ask of their advisors, 'But do you understand our culture and history?' As they desire their cultural heritage and family values to be upheld in a succession process.

Culture and values are vital in a transition process in passing on the core foundations that have allowed the family business and wealth to be created and built. And these are best captured in the Family Charter which not only records matters of governance but also captures the family history, culture, principles and values that have underpinned the success of the family. It is a passing of wisdom to future generations.

But there is a but. When it comes to orienteering the journey of family business succession, research and experience have shown that no matter what nationally or culture, the challenges that a family encounters in this transition process transcend these differences.

Every family is different, but every family will need to orienteer their way through the same path, overcome similar challenges and make common decisions. For this reason, every family should seek to learn from the journey of other families.

And an experienced independent succession advisor is likely the best port of call for this knowledge as they have captured the experiences of many families.

This short video discusses this point: