4 ms·

A related problem is when a child is available to take over the company but turns out not to be competent and the company ends up failing. I’ve been living in J

A related problem is when a child is available to take over the company but turns out not to be competent and the company ends up failing. I’ve been living in Japan for forty years, and I’ve known a half dozen such cases personally. Several failed when the succession reached the third generation: the founder had been talented and ambitious and made the company a success; his son was less talented but, having been mentored by his father, worked hard and kept the company going reasonably well; and the grandson was a spoiled goof-off who didn’t take the job seriously. In one case I know, several dozen employees lost their lifelong jobs as a result.

mschuster91 4y ago
The blame is a bit on the first and second generation as well though. Ideally, once a company grows large enough, there should be a layer of upper management as well that has both the competence and the freedom to make actual decisions... meaning that even in the case the company owners end up being dumb-as-rocks spoiled morons, the company survives. However, many on the smaller side go the way that the old 80+ generation keeps on micromanaging decades after their children have taken charge - a real problem in the German Mittelstand, because these fossils grew up with faxes and simply don't get the requirements of the modern age. They simply can't accept the idea that they have done their part once they reached retirement age and it is a natural requirement for them to actually retire so that the younger generations can learn and rise!
blisterpeanuts 4y ago
Not only in Japan; there have been many similar cases in the U.S. as well. Family businesses rarely do as well when the children or grandchildren take over. Though, of course, there are a few exceptions.
steve_gh 4y ago
Where I come from there is a saying "Clogs to clogs in 3 generations"

mschuster91 4y ago

The blame is a bit on the first and second generation as well though. Ideally, once a company grows large enough, there should be a layer of upper management as well that has both the competence and the freedom to make actual decisions... meaning that even in the case the company owners end up being dumb-as-rocks spoiled morons, the company survives. However, many on the smaller side go the way that the old 80+ generation keeps on micromanaging decades after their children have taken charge - a real problem in the German Mittelstand, because these fossils grew up with faxes and simply don't get the requirements of the modern age. They simply can't accept the idea that they have done their part once they reached retirement age and it is a natural requirement for them to actually retire so that the younger generations can learn and rise!

blisterpeanuts 4y ago

Not only in Japan; there have been many similar cases in the U.S. as well. Family businesses rarely do as well when the children or grandchildren take over. Though, of course, there are a few exceptions.

steve_gh 4y ago

Where I come from there is a saying "Clogs to clogs in 3 generations"