Photo: Mr David Osborne, chairman of the Advisory Board for the faculty at Peninsula campus, Professor Betty Weiler, Head of the faculty Berwick and Peninsula campuses', Mrs Jennifer O'Reilly, deputy head of the faculty at Peninsula campus and Mr David Wittner.

Family businesses can often be emotion based

Managing succession in the family business was the topic for the Peninsula Business Associates Seminar recently held at the Peninsula Country Golf Club. The Chairman of the Wittner Shoe Group, Mr David Wittner, gave an interesting insight into family business.

He emphasised the neglect of Succession in Management on the one hand and the Succession of Ownership or equity on the other hand which led to consequences that many family businesses came to regret.

Mr Wittner explained that a family business is often emotion based which leads to decisions that can have a negative impact on family members and the business. Families in business are sometimes motivated by security issues, placing a high value on loyalty and protection which minimise change.

“Business succession fails when there is no clear and agreed management succession plan. In family business there is nothing as good as a good family relationship and nothing as bad as a bad one”.

According to Mr Wittner a family business may well be better served through the appointment of an outsider to manage the business when the owner of the business steps down.