Succession Planning in Family Companies

Abstract

Succession in a family owned company needs considering so that the company is able to operate properly. Problems occur if no proper transition governance within the family members is carried out. As such, guidebooks are provided in order to ensure smooth successor transition process. The study on the Guidebook uses qualitative method. In fact, a smooth transition needs to consider a personality system, a family system, a ownership system and a management system. This study uses observation and interview as tools to collect data with purposive sampling used as a sampling technique. Factors are identified in order to determine the succession of BLT in a family owned company and other companies in transition periods. This study aims are preparing the succession of BLT by providing guidelines while focusing on such aspects as personality, family, ownership and management systems. These guidelines are expected to offer the lens for companies to process smooth succession without resulting in any complications. Hence, the sustainability of the companies is guaranteed.