1. The relationship between the incumbent leader and the successor is good
A good relationship between incumbent leader and successor is a crucial success factor for a smooth succession arrangement. Mutual respect and understanding are the most important characteristics of a good relationship. Other important components are trust, support, feedback, learning from one another, fun and friendship. Most successors say that a good relationship with the incumbent leader must be built up over time. This implies that the relationship evolves from parent-child to that of colleagues in the family business.

The positive relationship between successor and incumbent leader is facilitated by a number of elements. One of these is a healthy sense of self-confidence on the part of the successor. Secondly, the successor must earn the respect of the incumbent leader. It is no less important that the incumbent leaders allow the successor sufficient freedom, which is only possible if the incumbent leader has a positive self-image. This will contribute to the development of a mentor relationship, whereby the incumbent leader can take pleasure in seeing that the successor is acting independently. Both the incumbent leader and the successor can then experience and enjoy a "feeling of continuity" (Kets de Vries).

Unfortunately, in some cases the relationship between incumbent leader and successor is (seriously) disturbed. In that event, successors complain about the conservatism, lack of trust and critical attitude of the incumbent leader.  A (total) lack of (positive) feedback and recognition as well as faulty communication are also symptomatic of a poor relationship. Such an attitude on the part of the incumbent leader sometimes has deep psychological roots. Regrettably enough, in a number of cases this has led to the complete failure of the succession process.

2. Good relationships exist within the family
Good family relations are - as the research shows – a very important success factor for an optimal succession arrangement. Therefore the family must have relational intelligence. Relational intelligence consists firstly of foundations and secondly of skills in order to put these foundations into practice. 

Adapted from :  Hoover & Hoover, Getting along in the family business

The foundations of relational intelligence are trust, respect and optimism.

A high degree of trust among the various family members is of vital importance for building up good family relations. This applies all the more during the succession process, which is generally characterised by a climate of anxiety and uncertainty. Trust between the family members is an important bulwark against this. The more that honesty, openness, reliability and integrity dominate within the family, the greater the level of trust.

Mutual respect among the family members is another important characteristic of good family relations. This contrasts with the tension, rivalry, animosity and hostility which characterise many family businesses.

Thirdly, optimism about the family business is important. This entails above all that the family members have positive expectations for the future of the business and about their mutual relations.

These foundations of relational intelligence can only be created, maintained and improved if the family possesses a number of essential skills.

In a family business, open communication is the fuel of relational intelligence. Many family businesses are very poor in this regard, so that it is sometimes appropriate to draw up a formal communication charter that is signed by all family members.
Other important skills include being able to listen well (an essential part of good communication), being able to constructively solve problems, and being able to plan adequately.
If creating and maintaining good family relations offers a competitive advantage for a smooth succession, then it is very important to manage this aspect.

A secured skill is problem solving and conflict management. The corporate culture of family businesses, which generally are governed by the strong personality of the founder, frequently impedes a flexible resolution of conflicts. Founders are generally control freaks who brook little involvement from others. This means that within the family business few or no systems exist to manage conflicts. Yet successful successions generally occur in family businesses which have developed such systems. One might consider working out a consultation procedure, the intervention of the family forum, and so on.

Finally it is important to accept the differences in personalities between the several family members involved in the family business.