Relationship between Succession Planning and Controlling Use in Family Businesses - Empirical Experiences

Bogáth, Ágnes

Keywords: family business, controlling, succession, succession planning, SME, Q0, Q1, R2

The main objective is to examine the controlling activities of SME family businesses.
During my research I discovered that the existence of a controlling attitude and the continuation of controlling activities for the planning of succession have a positive effect. In companies where controlling is more present in corporate life, succession planning is even more pronounced, so successful completion of succession itself can be predicted. Based on these, the conduct of family SME controlling activities is recommended, in which a controlling approach is formed, which also benefits deciding on succession.
In addition, I propose to develop and introduce a controlling approach to family affairs. For family businesses, i developed a succession model that can help design and succeed in generating change. The process of succession aims to integrate the successor candidate into the family business, filling the most important positions and carrying out the tasks involved. This is based on SEW (social and emotional values), which builds on members’ emotional and social values, such as trust, sense of security, recognition of performance, commitment, and a sense of belonging based on the common norms of family and business. The succession process must be broken down into the offspring of the offspring and the forerunner. Agreements concluded should be written in order to avoid any further dispute.
All of these are based on my suggestion to run a track record that captures the main points of the process, their expected time and the conditions for meeting the specific targets for that stage. This logbook could lead to the development of the main indicators for the succession process. It would be a good idea to create a family tradition in dealing with the journal, thereby reinforcing the importance of taking over in the offspring.

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