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FATAL FLAW – “IN MY NATURE”

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The following story of the “frog” and the “scorpion” illustrates the potentially fatal dynamic that can arise in ownership succession and business continuity planning:

CASE STUDY

A frog and a scorpion are marooned on a small island in the middle of a river. The level of the water is steadily rising as the rain continues to fall in the catchment area, threatening to flood the island. The scorpion pleads with the frog to give him a “ride” on his back to the river bank, where they can both move safely to high ground. Initially the frog flatly refuses, stating that the scorpion would probably sting him on the way to the river bank and both will die. The scorpion continues to plead, arguing that to do so would be illogical and doom them both. Eventually the frog relents, the scorpion hops onto the back of the frog and they set off. Halfway across, the frog’s worst scenario comes true. The scorpion stings the frog and frog’s dying words are: “Why did you do that, we are both doomed”, to which the scorpion answers: “Because it’s in my nature.”

Sadly, some owner-managers in mid-adulthood (ages 55 to 60) enter a period of confusion of purpose. One day the business owner wants to build new branches, the next day to sell. This confused and insecure state usually results in a propensity to do nothing. There are many questions but few answers. There is no business or succession planning; becoming more insecure and static, some business owners inexplicably and impetuously “poison” the business by failing to respond to strategic imperatives such as those presented by BEE.

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