Managerial succession in family businesses: Proposal of succession plan for a company in the heavy machinery rental sector in the city of Manaus

Abstract

The organizational universe of family businesses has peculiarities that make this type of enterprise different from conventional companies. Absence of formal controls, management carried out in an improvised manner, centralization of managerial power in the figure of the founding partner and strong influence of emotions in the decision-making process are some of the singularities that characterize these business units. One of the most critical elements in the management of family businesses is that of the succession process. This study aims to analyze the practices concerning the succession procedures of an organization operating in the heavy machinery rental sector in the city of Manaus. To build the theoretical framework of the study, we used the conceptual bibliographic method used by Nascimento-e-Silva (2020) and to obtain the data from the owner of the organization a questionnaire with open questions was applied. The results indicate that the succession process of the analyzed company is carried out empirically, with the decisions concentrated on its owner partner. In order to make this process more professional and organized, a succession plan was elaborated for the company analyzed in this study, which consists of five stages: a) establishment of the content and rules of the family succession protocol; b) definition of the mission, vision, values and objectives of the company; c) establishment of the professional profile of the successor; d) definition of the personality traits of the successor, and; e) training of the heir chosen by the owner with a view to familiarizing this professional with regard to his future position in the organizational structure of the family business.