Let's Keep It In The Family

Danco, Leon A.; ,

Let's Keep It In The Family

by Leon A. Danco, Pres.; University Services Inst., Cleveland, Ohio; Adjunct Prof. of Business Administration, John Carroll Univ., Cleveland, Ohio,

Serial Information: Civil Engineering—ASCE, 1978, Vol. 48, Issue 2, Pg. 78-80

Document Type: Feature article

Abstract:

One of the most important challenges owners of private business will eventually encounter is the question of ownership succession. Unless the business owner provides the mechanism for the growth of his business after he is gone, he will destroy on his way down, what he's built on his way up. In jocular fashion, two of the most important points in planning managerial continuity are discussed. An effective organization chart, which should be like a map of the road ahead telling you where you have to go, and who is there to help you. It should be informative; differentiate between managers, officers, directors, and shareholders by responsibility, age, experience, name, etc. The second point made in the article deals with installing and nurturing responsible successors. The owner must take on the role of teacher with his successor as his brightest student. The curriculum should include, among other important points, thorough understanding of finance, take into account the real nature of the business, with regular progression steps from area to area.

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