Ask a family business owner if succession planning matters, and you’ll get a nod. Ask if they have a plan in motion, and suddenly everyone needs more coffee.
This year Deloitte Private surveyed 300 executives at U.S. family companies with $100 million to over $1 billion in revenue. Nearly eight in ten expect a CEO transition within a decade. Only 23% are actually carrying out a plan. More than a third have no plan at all.
The top excuse? Succession is “not a critical business priority at the moment.”
I’ve been in business for 40 years. I have never once seen “the moment.” There’s always a bigger client, a new location, a busy season. Meanwhile, succession sits in the corner like a party guest nobody offered a drink.
Let’s be honest. This isn’t a spreadsheet problem. It means talking about your own exit, maybe telling your kid they’re not ready. Of course it slides to next quarter. Next quarter is very roomy.
But waiting doesn’t mean nothing happens. It means something happens and you’re not the one deciding.
And readiness takes years. In 61% of these companies, a family member wants the CEO job. Only 23% think that person is ready soon.
You don’t need a binder. You need five things:
- A date. “Five to seven years-ish” counts.
- Questions, not assumptions. Ask your kids what they want. Brace yourself.
- Two lists. What the business needs, and who actually has it. Compare. Wince.
- A yearly check-in. About half of family boards already do one.
- An outsider. Someone who can say the hard thing without getting written out of the will.
Plan your exit while you still control the exit. Otherwise it gets decided at Thanksgiving dinner, and nobody wins at Thanksgiving dinner.