Many pallet companies are family businesses, and some of those are facing crucial transition challenges as the founders or early leaders retire. How prepared is your family business for leadership succession? Find out by taking this quiz. Give yourself 10 points for each “yes” answer to the questions below. Then total your points.
__ 1. Have we begun discussing leadership succession well before anyone plans to retire?
__ 2. Have we identified the strengths, interests and leadership potential of each family member involved in the business?
__ 3. Are future leaders receiving progressively greater management responsibilities and decision-making authority?
__ 4. Do we have written policies governing the employment, compensation and performance expectations of family members?
__ 5. Have we developed contingency plans for unexpected events such as illness, disability, death or family disagreements?
__ 6. Have key customer, vendor and financial relationships been shared with the next generation rather than remaining with a single owner?
__ 7. Have we considered whether outside advisers, board members, interim executives or fractional managers could strengthen our transition plan?
__ 8. Have we openly discussed leadership expectations, so family members understand why specific roles are being assigned?
__ 9. Does our succession plan emphasize fairness based on experience and contribution rather than simply equal treatment?
__ 10. Could our business continue operating successfully if the current leader became unavailable tomorrow?
What’s your score? 90–100 points: Your succession planning is well underway. Continue refining your leadership development and governance processes. 60–80 points: You’ve made a solid start, but several important areas deserve additional attention before a leadership transition occurs. 30–50 points: Your business may be vulnerable to unnecessary disruption. Begin developing a comprehensive succession plan while there is still time. 0–20 points: Waiting until a crisis occurs could jeopardize both your family relationships and your business. Make succession planning an immediate priority. For some good ideas, read the family business transition article on page 52.
