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Loosen the Family Ties

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

By Demmie Hicks | Updated on March 31, 2013

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.

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