Ask people to name a famous business scion and you can be sure someone will say Logan Roy. He may be the fictional founder of the media conglomerate Roystar Wayco in HBO’s Succession, but for four seasons, the intense family drama captivated North Americans.
It also made real-life business owners wonder if their empires could be picked apart by the same infighting and uncertainty that marked Kendall, Roman, Shiv and Logan’s brief existence.
Yes, Succession may not be real life, but with 61% of family businesses not having a written succession plan in place,1 there are plenty of real-life lessons ultra-high net-worth families can learn from this gripping series. Here are a few key ones to consider.
(Spoilers ahead.)
Create a board or hire a business consultant to assess successor candidates
The show revolves around Logan’s three children and the idea that one of them will eventually take over the family business. Unfortunately for them, no one knows which kid will assume the mantle – if any.
Logan loves to keep them guessing, which is not the recommended way to pass down a business, says Shelley Forsythe, Director of Family Enterprise Planning at BMO Family Office. “I’ve never seen anything as extreme as in Succession,” she says. “But if you don’t have the significant communication and trust that’s required in a family business to carry things on generationally, then you’re going to run into problems.”
Rather than choosing an heir or letting the kids battle it out for the corner office, Forsythe suggests creating a board of advisors or hiring a business consultant so the parent(s) can be saved from being put in an awkward position. The board or consultant can help assess the skills and educational requirements of each child and mentor them as they progress in their careers. It’s also helpful to have a family employment policy in place to establish standards. Having a mix of non-family and family members on the board is recommended (hello, Ewan Roy, Logan’s estranged brother), as long as they all keep the broader business objectives and strategic plan top of mind.
Calm communication is key
If there’s one thing the Roys love, it’s fighting. Screaming, crying, yelling, swearing – it’s no wonder these billionaire blowhards have made several “most dysfunctional” fictional family lists. But this type of dysfunction happens in real life, too, in part because 29% of families report discomfort in discussing sensitive financial topics, according to a recent survey of family businesses.1 Nearly half of those surveyed reported experiencing family conflict, with 41% saying roles and responsibilities of family members as the biggest reason for disputes.
Forsythe knows of a family where a parent had to fire the CEO-wannabe family member, who did not have the experience or leadership qualities necessary to lead the organization and was not a good fit for the business brand and culture. It’s vital for parents and children to communicate in a calm and respectful way. Not only will that make it easier for a parent to share their thoughts on what the business needs to continue to grow and be competitive in the marketplace, but it also gives the kids a chance to think about their strengths and attributes and what possible roles they will thrive in.
Creating trust among one another is critical here too, something the Roys clearly did not do. “When you look at the reason for wealth transition failures, the number one reason is breakdown of communication and trust,” says Forsythe. “You need to make sure everyone’s on the same page and you want to hear everyone’s perspectives. It can’t just be dictating everything that’s going on because the next generation won’t rise up if you have an authoritarian way of making decisions.”
Having regular family and business meetings are recommended if families are going to have a forum for open dialogue, both from an IQ perspective – the nitty gritty of wealth planning, tax, investments, and estate planning – and from an EQ lens, which covers more of the soft skills, such as communication and conflict resolution, she says.
Let your kids follow their passions
In the Succession series finale, Kendall recalls being seven when his dad told him he’d take over the business one day. “Can you imagine,” he says solemnly. “That was messed up. He shouldn’t have done that.” He’s right. Not only did that put a lot of pressure on Kendall, but it prevented him from having any life outside of Roystar Wayco, which made his existence all the sadder. At least Shiv had politics and Roman had his partying.
It’s important to follow your individual passions and interests, which may be outside of the business, says Forsythe. There’s more to life than the company, but it also makes it easier for kids to say “no” to taking over. “Not everyone is meant to be a CEO or leader,” says Forsythe. “Sometimes children don’t even want to be in the business, but they just feel like they have to because they’re getting a good paycheck and they don’t think they can get that same job and compensation in another organizations.”
Create an airtight incapacity, will, trust and succession plan
Major spoiler here: Logan Roy dies in episode three of the final season. As shocking as that was, the entire season changed then, not because of his death, but because of the so-called Will Logan left behind. In an addendum to his Will, which was neither dated nor shown to anyone before his death, it says, “It is my preference that the title and role of CEO should be given to Kendall Roy.” There’s one problem though – there’s a big black mark just under Kendall’s name that looks like it’s either underlined or crossed off. Naturally, Shiv and Roman think the name is crossed off, while Kendall thinks the job is his.
Fiction may not be stranger than truth here, says Forsythe. Many business owners don’t have properly written Wills or succession plans at all, leaving family and non-family members guessing as to who should take over the company after a parent passes away. If you don’t want to be like the Roys, then create a solid incapacity, Will and trust plan and a detailed succession, transition, contingency and/or continuity plans that can be flexible to changing circumstances. “These really need to be working hand in hand,” she says. A comprehensive master plan will outline who inherits what shares of the business and who is best suited to take over the company, planning for both ownership and management succession. The plan would also specify possible tax efficient strategies to mitigate a tax hit on assets or whether any assets should be held in a trust. Having these conversations with family and non-family stakeholders early and ongoing can assist with a coordinated transition plan.
If your business and org structure is complicated, don’t deal with just any lawyers, Forsythe explains. Enlist someone with significant experience dealing with large family businesses and who can continually update the architecture of your estate, trust and corporate documents as the business, or your children’s personal situations, evolve.
While Succession may be over, the lessons from the show will live on. Here’s one more that Logan didn’t heed until he was forced to: once your child takes over, get out of their way. “Founders often have trouble taking a step back because the business is what’s been keeping them going,” says Forsythe. “Don’t overestimate the emotional adaptation it takes to transition to a new role or find something else they are passionate about, which may not involve the business.”
1The North American Family Business Report 2023, Brightstar Capital Partners and Camden Wealth Limited.
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