THINK LIKE A STRATEGIST:
PART 3 OF 4: THE BOARD OF DIRECTORS
The intricate process of succession planning in a family-owned business requires a multi-faceted approach, involving not only the family members but also the board of directors. Leveraging the timeless wisdom of Sun Tzu’s “The Art of War,” this article offers insights into how the board of directors can effectively support both the incoming and outgoing leaders during succession planning. In this four part series, we explore how the principles in the Art of War can be applied to four main players when it comes to succession within a family-owned business. This article describes the third player – the board of directors. The article outlines a roadmap for the board’s crucial role in ensuring a seamless transition.. Fig 1 summarises these elements in a Board’s Checklist.
Fig 1: The Board’s Checklist
Supporting the New Successor Leader
1. Cultivate Unity and Alignment
Just as Sun Tzu emphasises unity among troops, the board must foster alignment with the new successor leader. Collaborate to clearly articulate the family’s vision and values, ensuring they resonate with the leader’s approach. This alignment provides a strong foundation for the new leader to confidently guide the business.
2. Provide Strategic Guidance
Sun Tzu’s principles highlight strategic acumen. Offer the successor leader strategic guidance based on the board’s collective experience. Share insights on market trends, competitive analysis, and potential opportunities. This guidance equips the new leader with valuable perspectives as they chart the company’s course.
3. Encourage Open Dialogue
Effective communication is key, as advocated by Sun Tzu. The board should create an environment that encourages open dialogue with the successor leader. Listen actively to their ideas, concerns, and aspirations. This fosters trust and helps the new leader feel supported and understood.
4. Facilitate Network Building
Just as Sun Tzu underscores the importance of alliances, the board can assist the successor leader in building valuable networks. Leverage the board’s connections to introduce the new leader to industry experts, potential partners, and mentors. These alliances enrich the leader’s knowledge and resources.
5. Advocate Adaptability
Sun Tzu’s teachings emphasise adaptability. The board should encourage the new leader to remain open to change and innovation. Provide a platform for discussing new strategies and initiatives, and be receptive to creative ideas that may propel the business forward.
Supporting the Outgoing Leader
1. Acknowledge Contributions
Sun Tzu’s philosophy advocates recognising achievements. The board should formally acknowledge the outgoing leader’s contributions to the business. Express gratitude for their dedication, hard work, and leadership. This recognition fosters a positive legacy and a sense of closure.
2. Offer Transitional Support
Just as Sun Tzu advises leveraging the strengths of all elements, the board can leverage the outgoing leader’s expertise during the transition. Encourage the outgoing leader to share insights, lessons learned, and advice with the successor. This knowledge transfer ensures continuity.
3. Respect Autonomy
Sun Tzu’s principles include granting autonomy to subordinates. The board should respect the outgoing leader’s autonomy in stepping back from operational roles. Avoid micromanaging the transition process, allowing the outgoing leader to gracefully transition out of their role.
4. Facilitate Legacy Preservation
Sun Tzu’s teachings emphasise preserving resources. The board should collaborate with the outgoing leader to ensure their legacy is preserved. This could include documenting best practices, lessons learned, and personal insights for the benefit of the new leadership.
5. Facilitate Leadership Development Initiatives
Just as Sun Tzu recognises the importance of training and preparation, the board can play a crucial role in facilitating leadership development initiatives for the outgoing leader. Acknowledging that the outgoing leader possesses a wealth of experience and insights, the board can collaborate to design mentorship programs, workshops, or training sessions that allow them to impart their wisdom to emerging leaders within the organisation.
Conclusion
Sun Tzu’s “The Art of War” offers profound insights that resonate beyond the battlefield, providing valuable guidance for family-owned businesses in times of succession planning. The board of directors plays a pivotal role in supporting both the incoming and outgoing leaders. By cultivating unity, offering guidance, encouraging open dialogue, facilitating networking, advocating adaptability, acknowledging contributions, offering transitional support, respecting autonomy, and preserving legacies, the board becomes a driving force behind a seamless succession that honours the business’s past while propelling it into a prosperous future
