An estimated 70 to 90 percent of global annual GDP is created by family businesses, yet fewer than one in three survive the transition from first to second generation ownership. Fewer still survive the transition to a third generation.
The reasons for failure are many, but chief among them is not planning for the future.
Schulich ExecEdâ€™s newly introduced Family Enterprise Continuity program is designed to give families the tools they need to explore the issues working against successful transitions and develop a plan to overcome them.
The program explores the concepts of trust in the family business and outlines best practices to address trust-erosion issues. Traditional family business frameworks address areas such as accountability, governance and leadership, but sometimes those frameworks need to change as the business changes. This program looks at why change happens and proposes at a full spectrum of possibilities for broadening and changing those frameworks.
Another major reason for the failure of family companies is succession planning. This program looks at managing risk around succession vulnerabilities in family businesses and how to mitigate them by having a well-thought out plan. Participants will learn how to create a successful intergenerational transition through interactive learning, expert guest lecturers, family business guest speakers, thought leaders and professional advisers.
This program helps owners create successful transitions for family businesses and wealth by building competency and confidence in the next generation.
The course, which is being held in September, draws extensively upon case studies and global best practices.
The program was designed by the Institute for Family Enterprise Stewards and is offered in association with Schulich ExecEd and sponsored by Scotia Wealth Managementâ„˘.
For more information on the Family Enterprise Continuity program, visit the course website.