From dynasty to disaster: The true cost of ignoring succession
In my many years advising and mentoring presidents of some of the world’s most largest companies, family business empires and even famous multi-billionaire business owners, I’ve seen one truth surface again and again. The most fragile part of any family business isn’t the market, the competitors, or the economic cycle—it’s what happens when succession is ignored.
Succession is the unspoken legacy plan, the bridge between generations and the difference between building a dynasty—or watching it collapse.
Nobody wants to talk about death—until it’s too late
One of the wealthiest family business patriarchs in Asia, with a net worth north of several hundred million dollars, ran a vast empire well into his 90s. Every operational detail passed through him. His family, terrified of even broaching the subject of succession, let him operate in a bubble. The belief? If they didn’t mention death, it wouldn’t come.
The problem was simple: no plan, no structure, no designated successor. Behind closed doors, family members would whisper concerns. But in the boardroom? Silence. I turned down their request for support because they did not want to face the facts and uncomfortable reality that daddy might die.
This kind of denial is not rare. I’ve seen it play out dozens of times. The outcome is predictable—chaos, family feuds and lost wealth. The moment the patriarch passes, the empire splinters. Siblings battle. Lawyers step in. Assets are sold just to keep the peace. And the legacy? It’s reduced to anecdotes and regrets.
Nobody has a lease on life: A cautionary tale
A Middle Eastern family empire—later headquartered in Europe—was built by a charismatic leader who personally oversaw every detail. He didn’t allow his siblings or children near the operational core. While everyone enjoyed dividends, no one understood the inner workings.
Then, without warning, he passed away in his early 50s.
The aftermath was brutal. With no one prepared to take over and no documented plan, executives ran wild. Lavish bonuses. Personal expenses routed through company accounts. In some cases, even fraud.
The siblings, despite inheriting one of the most iconic brand portfolios in the region, were powerless. It took them months to understand the cash flow, decipher executive relationships and assert control. By then, millions had been lost. The reputation of the business, once a regional titan, was irreparably damaged.
This real-life example serves as a stark reminder: death doesn’t knock. It kicks the door in. And if you’re not ready, everything you’ve built may vanish overnight.
The illusion of time: A US fast-food conglomerate
In the United States, a major family-run conglomerate overseeing hundreds of fast-food franchises appeared rock solid. The founder had retired. His son, in his 50s, had taken over and ran things competently.
But here’s the catch—there was no plan beyond him.
Despite his father’s repeated efforts to initiate succession discussions, the son brushed them off. “There’s time,” he said. “I’m not going anywhere.” And on paper, he was right—he was healthy, driven and successful.
But as we always remind our clients: time is not a strategy.
If something happened to him, there was no backup. No No. 2. No leadership pipeline. The father eventually turned to our firm to professionalize the operation and create safeguards. That included installing interim leadership protocols, coaching next-generation family members and bringing in governance best practices.
What saved that business was foresight—barely. Had that conversation happened a year later, the damage may have already been done.
Common pitfalls in family business succession
Across continents and cultures, my team and I at the Tom Oliver Group have identified a pattern of mistakes that plague family businesses. These are universal, regardless of industry or geography.
1. Denial of mortality
The most common phrase we hear? “We’ll get to it eventually.” But life doesn’t wait for an appointment. Succession is not about predicting death—it’s about preventing disaster.
2. Treating succession as a distraction
Many CEOs and founders get so absorbed in operations that they treat succession planning as an optional task. It isn’t. It’s the single most important strategic priority if the business is to outlive its current generation.
3. Assuming it’s a one-off event
Succession isn’t just about choosing a successor. It’s about preparing them. Training them. Transitioning client relationships. Redesigning governance structures. It’s a long-term process, not a document you draft on a weekend.
4. Poor communication
In our work with family businesses around the globe, we’ve seen how damaging silence can be. Founders are revered. Younger generations are hesitant to challenge them. The result? Suppressed tensions, unspoken assumptions and emotional landmines.
We’ve resolved decade-long conflicts in just a few hours—simply by creating a neutral space for honest communication. Often, families don’t need therapy. They need structure, truth and someone brave enough to say what others won’t.
The ‘We can do it ourselves’ myth
This may be the most dangerous delusion of all.
Far too many family business leaders believe succession is a task they can handle internally. After all, they know the business better than anyone. But that’s precisely the problem—they’re too close. Too invested. Too emotional.
Trying to plan your own succession is like attempting open-heart surgery with a mirror. It’s not just unwise—it’s reckless.
Even the most experienced business owners have rarely gone through more than one or two successions in their lifetime. Meanwhile, seasoned external experts—like the ones on our team—have facilitated hundreds, across regions and industries. We bring battle-tested insights, global benchmarks and objective guidance.
Hiring external counsel isn’t about relinquishing control. It’s about protecting what you’ve built. Because when succession is handled correctly, it strengthens the family, preserves the legacy and builds confidence among stakeholders and clients.
Three to thrive: How to secure your legacy
1. Start succession planning now, not later
Don’t wait for illness, age, or outside pressure to force your hand. Begin today, even if it’s just outlining the process. Procrastination is the enemy of stability.
2. Professionalize the process
Bring in experienced, independent advisors to help you plan, communicate and execute succession professionally. This isn’t just about picking the next CEO—it’s about ensuring continuity at every level.
3. Create a communication culture
Make it safe for family members to speak up. Hold regular huddles. Bring up the hard topics. Address misunderstandings early. Transparency and clarity today prevent litigation and breakdowns tomorrow.
If you care about your legacy, your business and your family’s future—act now.
Don’t be the dynasty that crumbles. Be the one that lasts!
