Covid 19 pandemic became a wake-up call to many family business enterprises.
During the stay-at-home and movement control periods we experience how important the adaptation to the new government policies is and how critical the agile management plans for family business should be. Small enterprise founders often struggle to figure out what to do with the family business succession during and after the pandemic. Some say that they are making plans for what follows during and after the pandemic and others say that they are considering some changes in family business succession planning.
Questions on business succession and successor development plans are given and responded with what they may need to do to get things work better at emergency state and what steps to be taken to make people focused on business without being hampered during and after the pandemic.
Clients don’t want to let the pandemic undermine the business but want to create more viable family succession plans on which they want to solidify their position in the market for years to come. The Covid 19 gave many family businesses lessons about what to prepare, what to do for agility and how to adapt to the new norm.
What are the main roles in family business entities? One is the shareholder and the other is the director.
As a matter of fact, small company owners have both the shareholder and the director for most of the cases. During the planning of the family business succession, one of the concerns is how to get the shares transferred to the next of kin without much fragmentation and confusion. What if something unexpected happens all of sudden, what to do with the shares of the owner of the family business? This can be planned in advance.
Next question is how to manage the family business when the owner is no longer around in the company.
During the planning of this subject, we talk about who would be the potential next generation and how to ensure if the chosen successor is capable enough to manage the company. For this reason, CEO successor development plan is seriously talked about and prepared. And with the proper programs set, we talk about what and how to select and develop the successor candidates. Mostly, not only the owner but also the successors themselves, who know the importance of the management skills for today and future. The new norm demands the new management skills given it would last for another two or three years and the operation of the business regardless of the pandemic should continue without any disruption.
Through AJPOP family business succession planning, we follow primary steps for ownership succession, management succession and financial distribution.
For each step, professional experts of AJPOP will be with our clients, understanding the current and future state of the client company and taking care of all necessary requirements. AJPOP provides the total family business succession plans and management program.
The purpose of the AJPOP family business succession plan is to ensure the family business is continued to be managed by the family with the unity of the family members and nonfamily employees with common vision and values when the founder is no longer around.
Writer – Julia Jungwan Shin (Executive Consultant, CEO of AJPOP)