Question

What role does Robert play in the succession planning for the family business? What steps should he take?​

Power Play at the Inn

Fronting on the Pacific Ocean, the Inn at the Wharf boasts 410 guest rooms and suites, two dining rooms, a lobby bar, and the lively Gull's Nest nightclub. The inn's annual revenues are $15 million.

Robert May, 57, purchased and remodeled the inn in 1970. His wife Katherine, although not now active in the business, had assisted in decorating and menu design. They have three children: Jake, 35; Amy, 30; and Andy, 24.

Three years ago, Jake and his wife Elaine, wanting to settle down from their life as rock musicians and start a family, were welcomed back. Jake manages the Gull's Nest. Elaine, a stabilizing force for Jake, especially during the stress of on-the-road tours, is interested in using her art skills at the inn.

Business degree in hand, Amy took over office management five years ago, including computer operations, for the inn. She and her husband, who is not involved at the inn, have a son. Andy will soon receive his degree in hotel and restaurant management and expects to work at the inn upon graduation.

Today, Robert arrived home looking haggard. Questioning him, Katherine soon discovered that Amy had come into Robert's office and burst into tears. Jake had been through her office with an old buddy who represented a computer company and informed Amy that he was considering purchasing a new computer system for the inn. "And besides that, Dad, I'm pregnant again. Can I handle my job and two children?"

Robert called Jake to his office and inquired about the computer decision. Much to Robert's surprise, Jake pulled out his wallet and presented a new business card: "Jacob May, General Manager, Inn at the Wharf."

Answer 1

Answer:

Robert to play the important role in the succession planning for the family business and he need to take steps as mentioned below

Succession Planning:​ Robert and his wife Katherine were operating the family business for the long time. Their children have grown up and they are now in the working age. They have been in the business for long time specially the elder children and the younger children is yet to start in their family business after completion of his study.

So Robert need to have the succession plan for his business

• Robert needs to identify all people in the family who are willing to work in their family business including the children and their wife or husband.

• Then Robert needs to assign the role for each family member like a organization structure and let them to lead their role in the organization.

• Robert should act like the CEO or MD, so that he can guide each family member in their role and made them comfortable in their role.

• Slowly Robert need to identify the children who can take his place, so that in the time period of 2-3 years, he can develop to the role of Robert and take the role of Robert and let the Robert to enjoy his retirement life. Robert may probably select Jake as his successor, if Jake’s attitude and character are suitable for the role. If the Jake’s is not suitable for the successor role, then Robert will choose form Amy or Andy. Amy will take some time as she is pregnant and will need a years time to be comfortable to lead the business.

• Robert need to have the succession plan for their children as well for their positions, so that he can have options and upon any requirement in future, he can act suitably.

Steps to be taken:

• Finalize the succession plan for the business and agree with all children and his wife.

• Assign the role to family team and act as a CEO / MD to help and guide the family team in their business.

• Agree for his successor, and develop hi in 1-2 years of time.

• Robert need to focus for administrative actions, so that any major issue can be avoided in the business.