Here’s what it all boils down to: good companies anticipate future events to avoid conflict later and ensure confidence within the group. When individuals understand that a decision was made following a defined process with consistency and certainty, fairness becomes a valuable tool for the business owner.
Summary
1. Appreciate the differences between equal and fair. Fair may be equal, but equal may not be fair.
2. Develop a set process for making fair decisions on fundamental succession issues to improve the chances that your decision will be respected.
3. Acknowledge the different lens of fairness. Like beauty, fairness is in the eye of the beholder.
4. Understand the difference between the fairness of a process vs. the fairness of an outcome.
5. Good governance can go a long way in helping with the perception of a decision being fair.
Brad Franc is the creator of The Succession Solution, an accomplished entrepreneur, business coach, strategist, business lawyer and CPA (inactive).