Lucía Arteta - Advisor at Lansberg Gersick Advisors
Family businesses often face their greatest challenge during the succession process, particularly when transitioning from the first to the second generation, and from the second to the third. In Ecuador’s flower industry, this generational shift is imminent. For family-owned businesses in this sector, the succession from founders to their children will put these companies in a vulnerable position. However, transitions like these also offer a golden opportunity to strengthen both the business and the family. Those who successfully navigate this period will not only manage the transitions but also build a lasting legacy.
Drawing from the book Succeeding Generations by Lansberg (1999), I argue that something even more important than succession planning is the definition of the family’s "Shared Dream."
Succession in a family business is not just an event, but a process that affects both the family and the business. The three-circle model of family business illustrates the birth of a business as one combined circle of ownership, family, and business. As the business and family evolve, these circles must begin to separate and differentiate while still maintaining a connection. This process can start before leadership transitions take place, but if the three circles—ownership, family, and business—are not properly differentiated before a generational shift, the chances of long-term success are significantly reduced.
Each circle—family, business, and ownership—requires its own governance, policies, and processes that align with the family’s and business’s stages of development. This means that the leadership change isn’t only about replacing individuals; it involves reevaluating the business model and leadership style in the context of the new structure.
Many families believe that if no one from the next generation wants to work in the business, it no longer qualifies as a family business. However, it’s the family ownership, not the family’s direct involvement in the business, that defines a family business. The first question every family should answer before starting the transition is, “Do we want to remain co-owners of this business?” If the answer is yes, the succession process can begin—regardless of the family members’ willingness to work within the business.
This transition is a difficult process, but its success starts with defining a "Shared Dream." As Lansberg explains in Succeeding Generations (1999), the "Shared Dream" stems from the family’s core values and aspirations. It defines who they are, who they want to be, the kind of business they wish to build, and how they want to be seen by the world. It’s a collaborative process that allows family members to assess whether their individual dreams align with the family's collective vision. The Shared Dream is the reason the family continues the business—it gives meaning to the work and ensures that everyone is on the same page.
Building this Shared Dream is a process, not a one-time event. Families should dedicate time, effort, and resources to this endeavor early on. Many business families wait until the leader is ready to retire, which leads to rushed decisions and sets successors up for failure. Family members need to establish common ground, based on shared values, positive communication, family history, and education in line with the family’s core principles. If the rising generation can establish this common ground, they will have the foundation to work as a team, which is crucial for siblings or cousins who have chosen to be co-owners.
Outside advisors can provide valuable insights, drawing on their experience with other families who have successfully navigated generational transitions. However, too often, professionals focus on the technical aspects of succession planning—such as strategy, succession, and estate planning—before addressing personal dreams and the degree to which those dreams align. Lansberg (1999) argues that these personal dreams must be worked through before any plans are made. If not, the best technical plans will lack the motivational power needed for successful implementation.
The process will require honest and deep conversations, which may cause disagreements before the family finds a common vision. It’s important to address and resolve these differences, rather than letting them fester and harm both the family and the business. The process requires honesty from all shareholders, as well as generosity from senior family members who must relinquish control, and from the next generation, who must recognize and appreciate the legacy of those who paved the way. Above all, it requires a deep love for both the family and the business to reach consensus for the greater good of the collective future.
The family will need to clarify the components of the Shared Dream—how they envision their personal lives, the family, the business, its ownership, and governance in the future. While dreams are strategic and long-term, goals are tactical and short-term. The family should set specific goals that align with their vision and help define individual roles within the desired future. They should also establish a support system, engage the right leaders, and set milestones to track their progress. The result will be a clear, adaptable roadmap for the future of the family business—one that outlines the vision, the steps to achieve it, and the flexibility to adjust as needed.
I encourage family businesses in Ecuador’s flower industry to recognize that they are at a critical juncture in their companies' histories. Take the time and effort to define your families' Shared Dreams. The approach you take during this transition could determine whether your profitable business withers and is sold off, or whether it becomes a multi-generational legacy that contributes to the prosperity of both the family and Ecuador’s economy.
In 2013, Lucía co-founded the Ecuador’s chapter of the Family Business Network (FBN) where she served as the Executive Director of the Family Business Association-FBN Ecuador until she joined LGA as an Advisor in 2024.
Over the course of 11 years, she has gained extensive experience as a facilitator for over 70 Ecuadorian family businesses. Additionally, her involvement in FBN’s global programs and her perspective as a third-generation member of her own family business have provided her with practical insights into the challenges faced by family enterprises.
Lucía firmly believes that each family needs to design tailored structures, strategies, and agreements to succeed and to create a legacy beyond financial gains. Her expertise lies in designing and implementing family and corporate governance structures. She advocates for the power of educating future generations, establishing diverse and strategic boards of directors, and promoting women’s participation in leadership roles.
Lucía currently serves on several boards of directors of Ecuadorian companies and is a member of the 30% Club Ecuador. Her past work experience includes positions on various boards of directors, as well as roles in Private Banking and Corporate Finance at a local Ecuadorian bank as well as Citibank Ecuador.
Lucía is Ecuadorian, married, and has three children. She holds a BA in Engineering and Economics from Brown University.
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