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Succession planning
Succession planning

In the riveting HBO series Succession, we witness the high-stakes power struggles within a wealthy family-run media empire. While the drama unfolds on screen, a crucial real-world lesson is embedded within the storyline: the importance of succession planning.

Succession planning isn't just a buzzword; it's a strategic imperative for businesses of all sizes, industries, and family dynamics. Like the Roy family in the show, companies without a solid succession plan risk chaos, uncertainty, and potential downfall when leadership transitions are sudden or poorly managed.

"A succession plan contrary to popular belief does not automatically include your children. They might not be the best for the job as seen in the TV show," said Michael Platner, managing partner of Lewis Brisbois. Michael is also the chair of the firm's national Corporate Practice and co-chair of its Securities & Corporate Finance Practice.

Michael Platner regularly works with clients to help them with succession planning that creates value and liquidity and reduces or eliminates future conflict. He's the author of the upcoming bestseller Going Liquid, which provides actionable advice and insights, such as succession planning, to business owners who want to position their organizations successfully for ultimate liquidity events(death, etc.).

Here's why succession planning deserves our attention from Michael:

  • Continuity and Stability: Just as a well-scripted succession plan ensures the seamless transition of power within a fictional empire, it provides real businesses with continuity and stability. A carefully crafted plan anticipates leadership changes, mitigating disruptions and preserving the company's momentum.
  • Talent Development and Retention: Succession planning isn't solely about the top brass. It's about identifying and nurturing talent at all levels of the organization. By grooming future leaders from within, companies cultivate loyalty, motivation, and a deep bench of skilled professionals.
  • Risk Mitigation: The unexpected can strike at any moment. Key leaders may suddenly depart due to illness, retirement, or unforeseen circumstances. A robust succession plan acts as a safety net, ensuring the organization can weather storms without compromising its mission or operations.
  • Shareholder Confidence: Just as investors scrutinise the Roy family's manoeuvres in Succession, stakeholders in actual companies closely monitor leadership transitions. A well-executed succession plan reassures shareholders, instilling confidence in the company's long-term vision and viability.
  • Preserving Legacy and Values: Beyond profits and power, succession planning is about preserving the legacy and values that define a company's identity. By thoughtfully passing the torch to the next generation of leaders, businesses uphold their founding principles and cultural heritage.

As we dissect the gripping drama of Succession, let's remember to pay attention to the invaluable lessons it passes on about the real-world necessity of succession planning. Whether you're part of a corporate dynasty or a budding startup, the time to plan for the future is now.