Abstract:

This article concerns the succession of small and medium enterprise (SME) family businesses. These succession plans have all of the properties of a project. Therefore, it should be managed as a project to enhance its otherwise already hampered chances for success. The correct system boundary definition and identification of the target subjects of a change lead to three areas and thus three concurrent projects: successor grooming, changes in a financial relationship and changes in management. The first is a long term project – shortcuts substantially increase risks for success. Management handover may be classified as an organizational change project. Financial transaction is a dedicated project with its own time schedule. In most cases, a program that comprises these three projects is led by the entrepreneur. An additional coach or even a dedicated program manager who can handle this type of endeavor is recommended. The family, even if it has a substantial impact, shall be treated as any other stakeholder. The “world” and/or environment encapsulates the endeavor. A cybernetic project (program) model of such a family business succession with feedbacking on three levels that effectively addresses the key success factors is presented in this paper.