Management succession: what it is and what it means

Management succession is the transfer of operational leadership alone to an internal or external manager, while ownership stays in the family. It typically unfolds over 2-5 years of working side by side and uses tools such as mandates, delegations of authority and executive contracts. It is a path distinct from generational transition, which transfers ownership and leadership together. The two options can be combined: the founder starts management succession while the generational transfer of ownership unfolds over a longer horizon.

Distinctive: operational leadership alone
Distinctive: ownership stays in the family
Essential: internal or external manager
Essential: mandates, delegations of authority and executive contracts
Constant: 2-5 years of working side by side

Glossary

Management succession

The transfer of operational leadership alone to an internal or external manager, while ownership stays in the family.