A new McKinsey & Co. study, cited by Hispanic Business, concerning 700 family business across the U.S., France, Germany, and Britain, found that installing the oldest son as chief executive of the company didn't pay off.
The results of the study revealed that companies managed by the oldest son performed 10 percent poorer than all businesses, and 20 percent worse than family businesses that were professionally managed.
This will probably cause family business owners to pause as 30% of the U.S. businesses surveyed, 44% of the French businesses, and 50% of 
British businesses had the oldest son as the CEO.
For family businesses, it would do you good to objectively look at the results of the son you have running the company. If he's performing up to market standards, this isn't an issue, but the reality that many aren't should be a wake-up call to take a hard look for the long-term success of the company.
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In general big companies were created by people who were really poor at the beginning so they had a lot of time to learn by going all the way to the top! The son that inherits the company is nevertheless younger and not so experienced and also not educated in the spirit of evolving and risking your financial security to make more money! Thus not so great results!
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Incorporated
Posted by: Incorporated | November 16, 2006 10:25 AM | Permalink to Comment