Succession in Family Business: Sharing the Cognitive Map

Abstract

Succession is the ultimate test of success reflected as sustainability in business, when managing business changes hands from a family leader to a non-family leader. This means when a family business is owned by the family but managed by a non-family member. This article explores the possibility of approaching succession process using design thinking—an approach based on appreciative inquiry. By identifying the various dimensions in which succession in family business takes place, this article introduces to business leaders a strength-based approach for creating an imagined future, that is satisfactory and acceptable after the incumbent phase out and successor phase in take place. The article emphasizes on creating of a singular image—a shared cognitive map for succession. When business leaders wilfully design a singular image, they have shared cognitive map that facilitates succession. The article provides guiding questions for design thinking in succession in family business.