Many family business succession plans don’t work. It’s a harsh reality—but a reality nonetheless. It’s not that they can’t work. I’ve helped dozens of clients implement a successful succession plan in my decades as a family business consultant. The issue is the “plan” part of succession plan. Oftentimes, there really isn’t one outside of the “Mary will take over when I retire in 5 years” variety. There are a variety of unforeseen forces that make this type of plan fall flat on its face. Perhaps the biggest is the failure of the younger generation leader to gain the trust of the family, the employees and clients. But that’s not just a younger generation problem, it’s an everyone-involved problem. Here are some reasons why trust is hard to come by:
They’ll Never Be You
The younger generation is, well, different. And though it seems obvious, your children (or other younger family member) are not the same person as you. They have different ways of doing things, different habits, and perhaps a different work ethic (perceived or real) than you. This fact almost always impedes a successful succession plan.
You’re Just Not Sure
You may think you’re ready to hand over control of your family business, but are you? I have found many times that the outgoing leader lacks a certain amount of trust in the successor. That’s not a good place to start a succession! If that sounds like you, start by asking yourself “why?”
Poor Visibility into the Plan
Whether it’s other family members, the employees or leadership, a lack of clarity on the succession plan and what, how and why certain decisions were made can create an information vacuum that quickly fills with doubt. Be open and clear with your plan.
The Generation Chasm
The gap is real, and it’s wide. One of the biggest issues I see in my work is a clash of styles and beliefs around work. It can be a real issue, but it’s table stakes for any succession plan.
Changing the Paradigm
The challenges of succession planning are consistent and common. The best way to overcome them is a mindset change. Stephen Covey calls paradigms our mental maps—how we see the world and act in it. They’re shaped by our values. But they’re not reality—just our version of it. But the more they align with our principles and real needs, the better they work. Here’s a (somewhat hypothetical) example: The new owner of a construction firm strolls in every day at 9:30 a.m.—a time he is used to going to work. But the team starts at 6 a.m., common in construction. The new owner inevitably loses the trust of the team before long. In this case, the new owner was living in a different paradigm before he bought the company, and had to shift his mindset and behavior to meet the moment. If we look at the challenges in the section above, there are a variety of tactics to overcome them. But the most powerful solve is shifting the mindset of both the existing leader, and the successor.
Responsibilities of Each Generation Going Forward
A successful succession isn’t about a plan on paper—it’s about everyone involved coming to the table. If the current leader won’t let go, or the next one hasn’t earned trust, the succession is DOA. Here’s what each side needs to do:
Current Leader:
Share Your Thoughts: Be clear about expectations, decisions, and what’s coming next.
Let Them Drive—Starting Now: If you want them to lead someday, let them lead something now—with real authority and responsibility.
Coach, Don’t Control: Empowerment is key. Guide them—but let them make the call, even if it’s not your way.
Build a Bridge: If there’s a generational gap, help close it by translating the “old way” into language that will resonate with the younger generation.
Successor:
Want Trust? Earn It: Trust isn’t given, it’s earned, every day. Show up, follow through and lead with consistency.
Honor the Past as You Move Forward: Show respect for what has been built, and how it was done. Don’t look for ways to upend the old ways, look for ways to improve them.
Make Your Intentions Clear: If you come into the leadership position with a new way forward, announce this plan and live it every day.
Adjust Your Mindset: Leading means adapting. Whether that means adapting to the workforce, the culture or a different way of viewing the world, you must learn to adapt.
Change is hard. But it’s all in the mind. By learning to shift your mindset, you can shift the paradigm and execute a seamless succession plan—and give yourself the best chance at future success.
