I recently had an opportunity to speak to first-generation family business owner from Brazil who asked how to decide which of his children would be the better choice to take over management of the business. I saw that he was not falling prey to the idea of primogeniture succession (the oldest assuming leadership regardless of business needs and individual abilities).

My response rested on a statement by Sam Johnson (former chairperson of S.C. Johnson & Son) that each generation needs to declare a vision for the business for themselves. If vision is a variable from generation to generation, the unchanging foundation of successful family enterprises is the values that the family and the individuals within it express through the medium of the business.

My recommendations to the Brazilian businessman were:

• That he and his family identify and discuss the values (those things that are important to them) they hold for themselves and that are important to the family in the context of the business.
• That with his children he undertake a family discussion of their five-to-ten-year vision for the business and what skills and leadership would be needed to achieve that vision.

I stressed that it is important that this conversation be a family effort. Also included should be his board of advisors or business mentors. To be done well this process may be expected to take from 6 to 24 months to complete.

The outcome should render an obvious choice and enable a smooth transition.