Case 2 Back Row Group
Linda Bass
Leandro Diogo
TJ Stufano
Sandra Weston
W.S. Darley & Co.
What are some of the traditional problems that can face family business succession planning that Darley appeared to successfully solve? According to Hatten, “in order for a potential successor to succeed, he or she must gain acceptance and trust within the organization, sometimes by demonstrating skills earned outside the business, or by taking entry level jobs within the business to learn the ropes. The successor must earn credibility by showing that he or she is capable of running the business.” We agree with Hatten, just because your grandfather owned a successful business and then your father took over the business doesn’t mean that when you are old enough you have the right to run the business. You must prove yourself and have experience in the business world and prove that you continue to grow the business and make it successful. In the case it talks about Bill Darley the second generation owner, and how he was thinking about who would run W.S. Darley & Co if he were to die, and he realized it was time for a succession plan. As stated in the case, Bill, his brother Reg, and his sister Pat took a look at all the family and non-family executives at the company, and felt there were three employees in the third generation that were ready to step up into senior management. The three employees were; Bill’s sons Peter and Paul, and Reg’s son Jeff. In order to pick the best candidate to bring up to senior management, they were all assigned to design a business plan describing what they would do if they were named president of the company. Each candidate had different strengths and weaknesses that helped the second generation determine what positions each of the three candidates would hold. Most family run businesses look to the first-born son for succession, but in this case Paul was the sixth of Bill’s seven children. We think that it is important to determine who is best qualified to
Leandro Diogo
TJ Stufano
Sandra Weston
W.S. Darley & Co.
What are some of the traditional problems that can face family business succession planning that Darley appeared to successfully solve? According to Hatten, “in order for a potential successor to succeed, he or she must gain acceptance and trust within the organization, sometimes by demonstrating skills earned outside the business, or by taking entry level jobs within the business to learn the ropes. The successor must earn credibility by showing that he or she is capable of running the business.” We agree with Hatten, just because your grandfather owned a successful business and then your father took over the business doesn’t mean that when you are old enough you have the right to run the business. You must prove yourself and have experience in the business world and prove that you continue to grow the business and make it successful. In the case it talks about Bill Darley the second generation owner, and how he was thinking about who would run W.S. Darley & Co if he were to die, and he realized it was time for a succession plan. As stated in the case, Bill, his brother Reg, and his sister Pat took a look at all the family and non-family executives at the company, and felt there were three employees in the third generation that were ready to step up into senior management. The three employees were; Bill’s sons Peter and Paul, and Reg’s son Jeff. In order to pick the best candidate to bring up to senior management, they were all assigned to design a business plan describing what they would do if they were named president of the company. Each candidate had different strengths and weaknesses that helped the second generation determine what positions each of the three candidates would hold. Most family run businesses look to the first-born son for succession, but in this case Paul was the sixth of Bill’s seven children. We think that it is important to determine who is best qualified to