Our industry is a close-knit group of entrepreneurs and leaders. It is exciting to know that so many of our independent agencies began and are still maintained by family ownership and leadership. Naturally, there is a lot of pride for what has been built, what has grown and what is still maintained independently.

In my work with independent agency leaders across the country, I see the issue of family succession planning arise time and again. A potential successor of family origin can unknowingly cause deep conflict within the ranks of an organization. The family member tries hard to gain the respect of employees, but the bias against her starts with her last name. Meanwhile, leaders with high potential and without a family connection become frustrated that their stellar performances will never be recognized with a promotion because those spots are only available to family members. Resentment festers, productivity decreases and ultimately no one wins.

What are you to do as CEO of a family-owned agency? From what I've seen in my work, there are three steps to minimizing animosity and providing a clear choice for succession:

1. Adopt a culture that makes it clear that everyone who is capable has a chance at moving up. Give everyone in your agency a chance at the role of next-in-line leader.
2. Clearly identify the core competencies required of an ideal successor. Communicate these competencies to your organization.
3. Create a development plan for all executive level employees. Give your high-potentials the opportunity to contribute and showcase their talents at a higher level. One idea is to create an executive leadership team that can be tasked to work on key business initiatives as a group.

Having a family member involved in your agency can be a wonderful way to both perpetuate the business with a trusted ally and provide financial stability to a loved one, but it can also cause deep scars and have a negative impact on other top performers in your agency. The choice must be made through a transparent process that leaves everyone feeling they were given a chance.