Today, we will be learning about the elements of successors and their potential in the family business. Let’s start by identifying the factors that make it possible to accomplish a successful succession. For this, we have two approaches, one from the perspective of the environment and the second from the succession process itself. In the first case, we need to identify the context surrounding the family and the business. It is also important to understand the relationship between the predecessor or founder and the successor. The second approach makes it possible to review the shared vision or common rules of the entrepreneurial family, on the one hand, so they can be responsible for the successors and their development, giving us elements for the selection of the successor and eventually establish a transition period in accordance with the predecessor’s development plan. In the final stage, the business’s shares are transferred, among other important events. Succession is the capability of assuring the attainment of a competent leadership in the family business from one generation to the next, which implies passing on both leadership and ownership, and, of particular importance, the successor’s capital stock and intangible capital. This relationship is crucial for the current founder or leader. The big question is, how can these resources be transferred over time? A key concept here is succession, it’s a process, not an event and is achieved during a period of time, in other words, if you take a resource with to the grave, you will have a dramatic impact on your company’s capacity to compete and your family’s to plan for the future. Let’s take a look at some interest data. In the past few years, new generations are undecided about joining the family business. The 2015 GUESSS, Global University Entrepreneurial Spirit Student Survey found that only 3.5 percent of new generations want to continue in their family business on graduating, and, after five years, the intention only increases to 4.9 percent in those students. A similar study conducted at the Center for Entrepreneurial Families found that in family businesses, 86 percent do not have a succession plan and only 8 percent have a formally established plan, while 6 percent have an informal plan. Similarly, when inquiring whether they have mechanisms for sharing knowledge between generations, just 29 percent of family businesses claimed they did, while the rest have them occasionally or haven’t even considered it. Some recommendations for increasing the intention of joining the family business are: establishing a career development plan within the family business so that successors will acquire work experience outside the family business, receive coaching or tutoring, acquire a formal education and define a training program. As a result of all this, it is important to identify certain situations related to the successor. The successor faces situations that will generate commitments according to the circumstances, such as the affective commitment, for example, the son who is about to graduate and is grateful for already having a job opportunity, for which he has prepared and has taken advantage of his university process to understand his family business. This type of commitment is based on being involved, identifying emotionally with his business; the successor wants to continue with the family activity and is excited about being able to accomplish objectives and collaborate in the organization. In the normative commitment, successors feel to some extent under an obligation to join the family business even though their professional interests lie outside the same; at the founder’s request, they leave their own interests behind. These successors feel a commitment to follow a course of action, of collaborating and accept this since they take care of their good relationship with the leader. Calculative commitment implies evaluating risk-benefit situations faced with imminent possibilities, based on the perception that greater benefits than costs will be obtained by entering the family business owing to the convenience of already being in the organization. Successors believe that they won’t have greater benefits or a better career outside the family business. Finally, in the imperative commitment, successors are afraid of leaving their environment and prefer to stay in the family business. They don’t take any risks, have doubts about being successful outside, need to be in the family business since they think that there aren’t any better alternatives to staying there in the family business. As we said at the beginning, in order to moderate between this type of successor situations, it is important to consider as success factors for the successor desire and commitment, as well as the circle of trust and feedback with the founder, also known as the predecessor or succeeded. Another factor refers to the competencies that should be developed, including capability, experience and performance in leading organizations, giving collaborators legitimacy and trust. To learn more about the successor competencies, we can complete an evaluation of the successor’s competencies, which are classified, as mentioned beforehand, in competencies to be considered by the successor, such as effective communication, trust, autonomy, innovation, among others. In addition, there are environmental factors, the successor’s involvement, the type of relationship with the family and technical business compatibility. This inventory allows us to draw up our plan of action for the development of competencies of the next generation. Once the results of the inventory have been identified, actions must be established to improve the competencies indicated, to validate this plan with experts and mentors and then implement them. To obtain the certificate for this course, it is important to evaluate the competency inventory. It was great speaking to you. See you later!