We want to transition the business to family members of the next generation versus selling to a strategic buyer, but we are worried about their actual capabilities. How do we objectively evaluate if family successors truly GWC™ their target seats before making the commitment?

Question

Tyler Smith · Accepted Answer

Passing a business to the next generation is a noble goal, but sentimentality is a quick way to destroy both the business and your family relationships. If you want to evaluate your family successors objectively, you must remove the family dynamic from the operational evaluation. You do this by holding them to the exact same standards as any other employee using EOS® tools.

First, map out the Accountability Chart based entirely on what the business needs to grow, not what your family members want. Once the seats and roles are clearly defined, evaluate each family member objectively. Do they truly GWC™ the seat? Do they get it, want it, and have the physical, emotional, and mental capacity to do it? If they do not, they cannot be in that seat.

Second, use the People Analyzer™ to assess if they live your Core Values. Family members must score a perfect match on Core Values. If they do not meet your cultural bar, they will erode the trust of your non-family leadership team.

Third, place them on the weekly Scorecard with clear, measurable expectations. Let the data do the talking. If they are consistently missing their measurables or failing to complete their quarterly Rocks, you have a performance issue that must be addressed in your Level 10 Meeting™.

If a family member cannot meet these standards, they should not run the business. You can still leave them ownership shares, but you must hire a professional Integrator to run the daily operations. By using objective EOS® tools, you make the transition about business health rather than family politics.