If tough choices are making you shy away from succession planning, consider the challenge that faced Fred Wagner, chairman and CEO of Minnesota Wire & Cable Company (MWCC) when he decided it was time to choose a successor in 1992. Wagner is the father of nine children, all of whom have worked for MWCC at one time or another. Three of the children's spouses also work for the company. Four of the children are in management positions, two in operations (Brian and Eric, the two oldest sons), one in finance (Joan Thompson, the second-oldest daughter) and one in sales (Paul, the third-oldest son).

When it came time to recommend a successor to his company's board of directors, Fred chose Paul. Not Brian, the oldest son. Not Joan, who had worked for the company the longest and was probably the most well-rounded, Not Eric, probably the brightest of the children, according to family members. But Paul, the youngest of the four, whom Fred judged the best leader and the one who could best sell the company, the qualities Fred believed were most crucial.

So what has happened since? Have there been fistfights on the shop floor? Seething resentment among older siblings? Turf wars in the executive offices? No, by all appearances, the transition has been a smooth one. The company has grown steadily and has launched a promising new business, Minnesota Med-Equip, which sells used medical equipment on the worldwide market. Close communication is part of their secret. "When the decision was made to recommend me as president, I spoke with each of my brothers and sisters

separately, to make sure they were squarely behind me," says Paul. "To be successful, I needed their support as family members and business associates."

Joan, his closest "rival," is comfortable with the decision. She, Paul and Fred had been functioning as the management team for several years prior to the planning process. "We made the decision together," says Joan, who was appointed executive vice president and CFO when Paul became president. "I wasn't really seeking the presidency. I wanted to be active in the company, but I am more comfortable in a behind-the-scenes role. Paul was really the obvious choice. He has the drive to do the job."

Fred Wagner's management style also helped pave the way for a successful succession, says Joan. "Fred has always been a good delegator, so when it came time for him to hand off the management responsibilities, we were ready."

Fred is ready to move on, too. He has bought himself a seat on the Minneapolis Grain Exchange and plans to return to his days as a one-person business. He wants to reduce his time at MWCC to three days a week, but that plan has been temporarily scuttled by Paul's heavy travel schedule, promoting the new business. "I still fell like I contribute, but they don't need me as much as they used to," says Fred. "Besides, I have other mountains to climb."