I help a lot of family businesses navigate the challenges of running a company and being a happy functioning family at the same time. Some I talk to run smoothly, but most have issues related to this special combination.
While I have never encountered a family as dysfunctional as the one depicted on the show, “Succession”, many family businesses have elements of Logan Roy and his children, Connor, Kendall, Shiv and Roman.
Besides this show being very engaging entertainment, here is what we can learn from “Succession”:
- The parents set the tone for any small business
In every family business, the parents, especially if it is a first-generation company, sets the tone on how it operates, and how family members are rewarded. Everyone will model their behavior to the leader (like parents) in the belief it will help them be successful.
If you are the leader of the family business, be cognizant that this is going on and adjust your behavior to get the desired results from your team.
If you are a family member, you need to decide if you want to be part of a business based on the current leader’s values.
- It’s personal, it’s not just business
Roman Roy says in “Succession” that “its not personal, it’s just business”.
This is not true; it is business, and it is very personal.
In fact, in family businesses, it’s even more personal since you have a long history you can use for or against that person to get things done.
If you are the leader of the family business or a family member, consider both the personal and business elements when making a decision. Remember that one of the reasons you are in a family business is because you want to be in business with your family. Like it or not, love still plays a role in family business. In many ways, this is what all the Roy children are simply after from their parents.
- Many leaders (and parents) want to have deferential employees (and children)
Unfortunately, many traditional leaders just want employees to do what they tell them. They expect this even more as a parent and a leader. Unfortunately, this results in dependent thinking team members and the leader as a single point of failure.
If you are the leader of the family business, foster independent thinking among the family members and give them real responsibilities to independently execute.
Each family member needs to have a formal job description to fit their responsibility. No exceptions.
If you are a family member, ask the leader for independent assignments to showcase what you can do.
- Have a written succession plan
One thing we can all be sure of; you will not live forever (Maybe Logan Roy will). Only about one third of family businesses successful transition to a new generation. This is because they do not have a well thought out succession plan. Founders or the current generation of leadership don’t want to let go since their identification is so wrapped up in the business.
If you are leader of a family business, have a formal process in place. Document who becomes the leader when you are no longer able to do the job. Set this up at least two years before retirement. This of course can change.
If you are a member of the family business, insist on a clear succession plan (and don’t play Logan Roy’s game).
Pretty much spot on.
However, there can be one of the family who doesnt follow the lead and belives they are exempt from any and all rules, values or behavioral standards. How the leaders handle this can determine the future of a family business.
Succession plans are a must.