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Carol Wingard has worked hard to build the small jewelry manufacturing company she started in her late 20s into a highly successful family business. Now, 40 years later, she is "ready to step down and enjoy life." She has seven family members, including her two sons Ralph and Cooper, who work in the business. Ralph has 30 years of experience, and Cooper has 22 years of experience. Both are vice presidents of the company.
Carol has always intended to pass the business to her sons, who together own 20% of the company's stock. However, she has always been too busy running the business to put together a formal management succession plan. For the past decade, many of the employees have whispered among themselves about who would be named president if Wingard stepped down and about what, exactly, would happen to the business.
Now that she has decided to retire, Wingard wants to begin developing a management succession plan. She calls you and announces her plan to retire within a year. What advice do you offer her about a management succession plan?
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