Handing over the family business

The AARP is remodeling its brand image. It seems that the baby boomer generation, AARP's next big membership base, doesn't consider itself qualified to join.

A reluctance to think about growing older isn't limited to boomers who resent getting AARP's "welcome to Old Foofdom" letter when they turn 50.

Among family-owned businesses, one of the things that can cripple the succession process is the unwillingness of senior business owners to hand over authority and responsibility to the successor generation. It's a problem that often arises when all concerned interpret the hand-over as signaling that the top people have gotten too old to run the company.

Welcome, senior owner, to Old Foofdom.

When 77-year-old John Glenn rode the space shuttle in 1998, he forever put to rest "too old" as a legitimate reason for doing or not doing anything.

OK, maybe your eyes aren't strong enough these days for skeet shooting. Maybe 30 years of sitting on a chair or a truck seat has left your legs too out of shape for a marathon run.

But those are parts wearing down, not the whole system being ready for the dumpster.

Plenty of 25-year-olds with parts problems can't see, or walk, across the room.

Men and women who've spent their lives building and leading businesses to provide for their families' financial welfare shouldn't be expected to turn in their keys simply because of age.

There is no maximum age for effective work, for executive capability.

A family chorus humming "Silver Threads Among the Gold" shows ignorance as well as disregard for the effort, sacrifice and broad capability required for such an achievement.

On the other hand, some successful companies that are fully committed to family ownership continuity have adopted policies setting an age range (not a cutoff age) for the senior owner's change of role in (not necessarily retirement from) the business. The reason is not to get the doddering old foof out of the office before he does some real damage.

It's to ensure adequate time and resources for the thorough preparation of successors, a smooth transfer of responsibility and authority, and the passing-along of the senior owner's experience as part of the family and business legacy.

Some other very good reasons for making that all-important leadership change:

* A vigorous business in a changing marketplace can always use fresh ideas and diverse experience.

Many times it's in the interest of the business to install new top management. There's nothing wrong with the way you've run the company.

But in this fast-moving new business age, companies generally profit from new leadership perspectives. A well-prepared, highly motivated successor can add fuel to the fire. Making way for him or her is a contribution to the long-term success of the business.

* You are needed somewhere else.

There is an opinion, often held by corporate executives and shop owners, that the CEO, the head individual is the only really important person in the place.

Not so.

Many family businesses reach a point where the most important job is that of senior statesperson, the boss emeritus who swaps the corner office for the guru's seat on the mountain.

While the infusion of the younger generation's energy is vital to building and sustaining business momentum, the wisdom of experience can only be provided by the senior owner who steps aside -- and upward.

* You have built the business beyond your capacity to run it your way.

This realization causes some senior owners to cry and others to chuckle with ironic amusement.

In either case, when that light dawns, it's time either to bring on a more expansive management capacity from within or outside the family, or to sell the business. Anything less jeopardizes everything you've worked for, as well as your family's wellbeing.

* There are other interesting, satisfying things to do.

Many senior owners find it hard to believe, but there is life after the family business.

If you have invested more than half your life in setting up the business for success, what is wrong with turning over the helm to the next in line and applying your talents elsewhere?

Write a management book.

Start another business.

Enjoy your life's accomplishments with confidence in the future.

James Lea, a professor at the University of North Carolina at Chapel Hill, is author of Keeping It In the Family: Successful Succession of the Family Business.

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