Non-family Professional as CEO

Yes

No

Unsure

1. Would you go outside for a candidate?

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2. Are there candidates in the company now?

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3. Do you know what traits you would look for?

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4. Do you know how you would conduct your search?

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5. Does the next generation have a role in the search process?

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 Family Financial Liquidity or
"Converting Shares to Cash"

Yes

No

Unsure

1. Is there a shareholder's agreement that permits periodic sale of shares?

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2. Is the share value based on a comparison to other companies in your industry?

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3. Does a buyback of shares limit the company's financial obligations?

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4. Have shareholders used this provision?

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5. Has the experience been favorable or unfavorable?

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6. Are shareholders discouraged from selling shares?

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  Equitable Compensation

Yes

No

Unsure

1. Do you conduct an annual peer group survey relating top management compensation to other companies of your size in your industry and geographic region?

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2. Are bonuses tied to specific performance goals?

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3. Do non-family executives have deferred benefits tied to increasing stock value?

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4. Is there a specific relationship between bonuses paid to non-family and financial benefits (dividends, etc.) paid to family members?

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5. Are family members (in top management) paid on the same basis as non-family?

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  (Next-Generation) Smart Owners

Yes

No

Unsure

1. Does the next generation meet regularly to discuss specific financial goals for the business?

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2. Does the company measure performance against its goals?

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3. Are family members involved with strategic (macro) issues about the company?

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4. Have you identified and discussed the competitive challenges facing your industry?

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5. Has the next generation openly discussed selling the company and decided not to sell?

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  Ownership Readiness

Yes

No

Unsure

1. Is there a project or research that the "next generation" could work on that could be relevant to future business decisions?

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2. Have you considered which lessons from the past should be preserved and which "sacred cows" should be skewered?

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3. Is it time for a communication skill-building workshop?

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4. Do listening skills need improvement?

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5. Have you quantified the level of capital your company needs to grow?

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6. Will owners "pony up" the necessary reserves?

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7. Are the current and future generations aligned in regard to the level of risk they are willing to assume?

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How ready are you for change?