This Houston tech leader explains the challenges and opportunities that succession planning includes. Photo via Getty Images

Family-owned businesses have unique challenges when it comes to succession. The biggest obstacle is that family members leading the organizations think they know their own children or heirs’ capabilities better than they actually do. The current slate of executives can see the most obvious strengths to some degree, but they often miss the entirety of each family member’s gifts. They may also fail to see what work gives each heir the most passion and job fulfillment.

The second challenge is the emotional connection to family members, which can make hiring or promoting decisions stressful. This can also lead to difficulty with honesty when it comes to family members. On the other hand, some business owners are too tough on the next generation taking over. In either case, finding the right balance between effective work relationships and objective decision-making can be difficult. Then there is the challenge of openness, willingness and objectivity to make the tough calls. One example of this is if the internal family talent has gaps, the executives need to be willing to recruit or promote key talent to fill the gaps to be the most effective team. When a family-owned business refuses this, this can be detrimental and create a problematic future. Like it or not, while family businesses can be exceptionally rewarding, they are still businesses at their core and must adapt effectively to be competitive or to survive future challenges.

Lastly, there is a competitive factor when it comes to succession in family-owned businesses. Most family members that are engaged in the business and in a leadership capacity tend to be highly competitive by nature. Adding to the sibling rivalry that they have faced throughout their life. So, with succession, how does the family keep these competitive forces in check while being aligned in a positive way?

The best way to overcome these challenges is to understand each person's leadership character traits and risks for ineffective behaviors or derailment. Additionally, learning about someone’s drivers, reward needs, or intrinsic motivation can help paint the big picture. When using these objective measures, the family leadership team can get an accurate reading of the talent of each family member as well as get a clear look at the leadership bench strength. There are validated assessment tools that can help business owners understand these characteristics such as in-depth character, risk and motivational measures geared toward leadership development, training and executive coaching.

For example, Jennifer was the CEO of a large residential and commercial real estate company. She was exemplary in the business, built strong relationships and was a go-getter in sales and marketing. Throughout her tenure, she hired top talent and had a natural executive presence. Her husband, George, was the CFO who had the typical high level, brilliant financial smarts and measured everything to the nth degree. Their family-owned business soared to become number one in the region competing with national franchises. As time went on, they planned to transition the business to their two sons. They saw John, one of their sons, as the heir for the CEO position because he excelled in fostering relationships and operations. Therefore, they also assumed he would just pick up on the marketing and sales that Jennifer was great at. This left the other son, Ray, as the new CFO because he was financially brilliant.

However, what Jennifer and George missed was that there were holes and gaps in each of the sons’ skill sets that didn’t quite align with the positions they were to succeed. With a thorough assessment through the CDR 3-D Suite and individual coaching and discussions, the mismatch became evident In fact, one of the sons said he would leave the company if forced to do the parent’s job role. The other son had similar comments. After investing in these helpful tools they re-created the executive roles to “fit” the sons’ profiles and needs. This required adding another key executive to lead marketing and sales for John since he excelled in operations leadership, financial management and relationship building. Ray took on some financial responsibilities but his primary role was business development. He focused on big ideas and business growth. A deep dive into his characteristics and drivers demonstrated how If he were to work with numbers routinely, he would be miserable which in turn would affect the business as a whole.

The lesson learned is that executives cannot necessarily force their children or family into the same boxes or job descriptions they have held. Sometimes, there needs to be a shift or redesign of the job description and scope of responsibility to best fit the incoming executives. The next generation will share some of the same strengths, but will also have different skills and weaknesses. Many will likely be motivated by different aspects of the work and if business owners are not able to identify these inherent capabilities and needs, succession can be unsuccessful.

In terms of conflict or tippy-toeing around difficult conversations, using data can help family-owned business executives and their family members get a clear and objective understanding of their respective talents and needs. The initial work goes a long way and keeps discussions productive and on track. Good data supports productive decisions so that everyone is in a win-win position. When approaching succession this way, generations will be placed in roles that best fit their personality and what they want to be doing. Without this type of data, it is easy to misalign roles which causes problematic performance and conflict and fosters a stressful work environment. When leaders are stressed, inherent risk factor behaviors manifest regularly, which damages performance and relationships. Bottom line, identifying these characteristics before planning succession and using objective assessments provide the data and the blueprint for family-owned businesses to design successful executive teams.

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Nancy Parsons is the president and CEO at CDR Companies.

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5 minority-founded Houston startups shine as Innovation Awards finalists

Meet the Finalists

Houston is one of the most diverse cities in the nation, and that trend carries over into its innovation and startup ecosystem.

As part of the 2025 Houston Innovation Awards, our Minority-founded Businesses category will honor an innovative Houston startup founded or co-founded by BIPOC or LGBTQ+ representation.

Five minority-founded businesses have been named finalists for the 2025 award. The finalists, selected by our esteemed panel of judges, range from a wearable health tech device company to a clean chemical manufacturing business to a startup with a lunar mission.

Read more about these innovative businesses, their initiatives, and their inspirational founders below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled at our live awards ceremony.

Tickets are on now for this exclusive event celebrating all things Houston Innovation.

Capwell Services

Houston-based methane capture company Capwell Services works to eliminate vented oil and gas emissions economically for operators. According to the company, methane emissions are vented from most oil and gas facilities due to safety protocols, and operators are not able to capture the gas cost-effectively, leading operators to emit more than 14 million metric tons of methane per year in the US and Canada, equivalent to more than 400 million metric tons of CO2e per year. Founded in 2022, Capwell specializes in low and intermittent flow vents for methane capture.

The company began as a University of Pennsylvania senior design project led by current CEO Andrew Lane. It has since participated in programs with Greentown Labs and Rice Clean Energy Accelerator. The company moved to Houston in 2023 and raised a pre-seed round. It has also received federal funding from the DOE. Capwell is currently piloting its commercial unit with oil and gas operators.

Deep Anchor Solutions

Offshore energy consulting and design company Deep Anchor Solutions aims to help expedite the adoption of floating offshore energy infrastructure with its deeply embedded ring anchor (DERA) technology. According to the company, its patented DERA system can be installed quietly without heavy-lift vessels, reducing anchor-related costs by up to 75 percent and lifecycle CO2 emissions by up to 80 percent.

The company was founded in 2023 by current CEO Junho Lee and CTO Charles Aubeny. Lee earned his Ph.D. in geotechnical engineering from Texas A&M University, where Aubeny is a professor of civil and environmental engineering. The company has not raised VC funding, but has participated in numerous accelerators and incubators, including Greentown Labs, MassChallenge, EnergyTechNexus LiftOff and others. Lee is an Activate 2025 fellow.

Mars Materials

Clean chemical manufacturing business Mars Materials is working to convert captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. The company develops and produces its drop-in chemical products in Houston and uses an in-licensed process for the National Renewable Energy Lab to produce acrylonitrile, which is used to produce plastics, synthetic fibers and rubbers. The company reports that it plans to open its first commercial plant in the next 18 months.

Founded in 2019 by CEO Aaron Fitzgerald, CTO Kristian Gubsch and lead engineer Trey Sheridan, the company has raised just under $1 million in capital and is backed by Bill Gates’ Breakthrough Energy, Shell, Black & Veatch and other organizations.

Torres Orbital Mining (TOM)

Space tech company Torres Orbital Mining aims to pioneer the sustainable extraction and processing of lunar regolith and designs and builds robotic systems for excavating, classifying, and delivering lunar material. The company aims to accelerate a permanent and ethical human presence on the Moon.

The company was founded this year by Luis Torres, a current MBA candidate at Rice Business.

Wellysis USA Inc.

Wellysis USA Inc. works to detect heart rhythm disorders with its continuous ECG/EKG monitor with AI reporting. Its S-Patch cardiac monitor is designed for extended testing periods of up to 14 days on a single battery charge. The device weighs only 9 grams, is waterproof and designed to be comfortable to wear, and is considered to have a high detection rate for arrhythmias. It is ideally suited for patient-centric clinical trials to help physicians make diagnoses faster, cheaper and more conveniently.

It was established in Houston in 2023 and participated in the JLABS SFF Program the same year. It closed a $12 million series B last year. It was founded by CEO Young Juhn, CTO Rick Kim, CFO JungSoo Kim and chief strategy officer JoongWoo Kim.

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The Houston Innovation Awards program is sponsored by Houston Community College, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.

The Ion taps John Reale for startup and investor role

new hire

The Ion has named John "JR" Reale as its director for startups and investor engagement.

In his new role, Reale, a longtime leader in Houston’s startup ecosystem, will work to strengthen the innovation district's founder and investor network.

"Here’s what I’ve come to believe: the Ion is not just a building, not just a real estate play, and not just another innovation district. COVID, remote work, and shifting market dynamics changed the rules. Key ingredients like co-working, events, and community, while impactful, are no longer enough on their own," Reale shared on a LinkedIn post announcing the move. "What’s needed are advantages ... We need to intentionally design a system that repeatedly delivers advantages so founders can pull forward their visions."

Reale previously served as executive in residence and venture partner at TMC Venture Fund and co-founded Station Houston. He also serves as managing director of Integr8d Capital. He's an investor and serves on the board of directors for a number of venture-backed companies, including Cart.com, Lionguard and others.

The Ion will host "Today Is Day One – A conversation with John (JR) Reale" to welcome Reale to the role on Tuesday, Oct. 21. Reale will be joined at the event by Heath Butler, partner at Mercury, to discuss their thoughts on shaping Houston's founders ecosystem, as well as the Ion’s Founder Advantage Platform.

"On top of this connected architecture, we will build product. That product will be the Founder Advantage Platform to remove friction, compress time, and compound outcomes," Reale continued on LinkedIn. "This is the system that will drive repeatable experiences, and naturally, make these journeys so much more fun."

Houston's IAH soars in new ranking of U.S. airports with best dining

Flying High

Here's news that'll make a flight delay at Houston's George Bush Intercontinental Airport a bit more palatable: IAH arrives at No. 12 in a new ranking of the country’s best airports for food and beverage options.

The 2025 study by commercial furniture manufacturer Restaurant Furniture relied on Google reviews of food and beverage establishments at the busiest U.S. airports to come up with its list. The study included only those restaurants and bars with at least 20 Google reviews.

IAH earned an average Google review rating of 3.29 out of 5 stars for its food-and-beverage establishments.

The study analyzed 61 restaurants and bars at George Bush Intercontinental Airport. The Houston airport’s highest rated establishment was Pappadeaux Seafood Kitchen. That Pappadeux location garnered an average Google review rating of 4.48 out of 5. George Bush International also is home to the study’s highest-rated Chick-fil-A and Whataburger restaurants.

Several years ago, IAH made a major effort to upgrade its dining options by partnering with local chefs such as Chris Shepherd, Ryan Pera (Coltivare), and Greg Gatlin (Gatlin's BBQ) on concepts for Terminal C North. More recently, a change in the city's airport concessions contract brought local favorites such as The Annie Cafe and Common Bond to the George Bush.

“Airports aren’t usually renowned for their choices of bars and restaurants, and this is often because people just want to get through the airport and onto their final destinations as quickly as possible,” Nick Warren, head of e-commerce at Restaurant Furniture, says in a release. “However, a good airport bar or restaurant can provide a great rest stop after a long flight, and these positive experiences can go a long way towards travelers choosing which airport they will fly from in the future.”

Dallas Fort Worth International Airport soared to No. 1 in the rankings. Restaurants and bars at DFW earned an average of 3.56 out of 5 stars on Google — the highest number among 31 airports.

Just like in Houston, among 74 locations at DFW, the study found Pappadeaux Seafood Kitchen in Terminal A scored the highest average Google review rating — 4.59. DFW also boasts the top-rated IHOP, McDonald’s, Panera Bread, and Panda Express among the 31 airports that were analyzed.

Rounding out the top five airports with best food are Miami International Airport (No. 2), San Francisco International Airport (No. 3), Denver International Airport (No. 4), and Hartsfield-Jackson Atlanta International Airport (No. 5).

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A version of this story originally appeared on CultureMap.com.