In the second episode of season three’s Succession, Kendall improvises his “war room” at his ex-wife’s home to build his takeover team. He tries to get his siblings to side with him with a buzzword-laden “end of an empire” pitch that falls flat because of Logan’s doughnut delivery. It sent a message that their father is omnipotent and that they should be scared. It works since Connor, Shiv, and Roman say no to their brother’s offer. Kendall then tries to dominate by pointing out their weaknesses in the nastiest of ways. It is a communication collapse where nobody is happy, nor are they any closer to what they want.
On the other side of the communication spectrum is Logan’s estranged wife, Marcia. She has been humiliated with Logan’s philandering ways in season two and now has the upper hand. Logan needs to reconcile with her for the sake of how the public will interpret his stability at home. Marcia comes prepared when she sits with Logan and delineates what she wants in detail. Her move is masterful for her needs, but all sides are failing from a generational wealth perspective.
Only one-third of family businesses go on to succeed past the first generation. Only nine percent go on to the second generation. Why do transitions fail? While it is possible to point to personal interests or unusual personalities, the breakdown usually occurs in communication.
Most families have more than one operation in their enterprise. Aside from the main operating business, there are financial assets, real estate, heirloom assets, philanthropic efforts, and other deferred assets like insurance policies and retirement plans. Family transitions don’t have to be challenging when you consider what you, your family, and your business are trying to do long-term.
Successful families focus on the four “C’s.”
· Continuity – For a family to become generational, they embrace a meaningful vision and build core capabilities. They sacrifice today for the long run and create ways to foster educational opportunities for the family members and senior-level executives.
· Community – Rather than using nepotism, family roots create strong values. Principles will supersede rules or financial incentives and help drive loyalty with family members and employees.
· Connection – Besides the family members, additional stakeholders such as the employees and vendors are also important. This consideration fosters a culture of caring and commitment that builds strong alliances with outside parties.
· Command – Succession offers its viewer an outlandish family showing extreme behavior. Most families have influence and therefore can be original because they don’t answer to quarterly shareholder meetings or the public markets. This freedom also allows for courage in their actions while building a solid team of advisors and executives around them.
The Four “C’s” require a substantial amount of communication, which means a ton of compassion. When you can observe and listen, rather than wait to talk, conflicts can resolve quickly. It creates a path where everyone gets what they need from the conversation and the long-term goal of generational wealth for everyone involved.
Family business transitions are complex.
We have the strategies and tools to create a collaborative environment during a critical stage in a family’s life and business operations.
