found that only 34% of U.S. family businesses “have a robust, documented and communicated succession plan in place.”
It can be challenging to carve out time to think about the future when there are so many issues to deal with today. But it’s critical., a West Chester-based transportation, supply chain and logistics firm that employs more than 4,000 people, including multiple members of his family from three generations. Latta, who is in his mid-60s, has spent a great deal of time over the last few years formalizing his company’s succession plan. Along the way, he has had to make some tough decisions.
“A really important aspect of family-owned businesses and sustainability is that there’s a clear understanding of the respective roles of owners, of directors, and of leadership and management of the company,” he said. “If family members don’t respect those guardrails, then it can create a lot of frustration. You’re not going to keep good independent directors and leaders if you have owners stirring the pot.
“When you’re ‘home trained,’ your mindset is narrowed,” Shmuel said. “But when you’re trained by other organizations, you bring new perspectives to your family business that would not otherwise have been discovered.”