Boyden: Leadership Change Should Be Planned Ahead
Planning for succession and managing succession is a key part of changing leadership, although it is often overlooked and undervalued, and can lead to disputes and shareholder discord. Statistics show that second to third-generation business survival is most at risk in the period of leadership transition. This is especially a challenge in the Middle East where there is a lack of qualified, experienced, culturally fit internal and external talent available.
Succession planning should include a thorough process and similar motivations, whether occurring between corporations, or private family-run businesses.
Matthew Lewis, Partner in the Middle East & Africa region at Boyden, shares some guidelines to successful succession planning:
- Corporates have the distinct advantage of a more transparent, democractic process not based on family generational transition.
- For family groups and private businesses, being proactive and having a process in place is highly important
- Proactive steps a business can take prior to the transition
- Key things to do post appointment