Family Businesses Can Learn From HBO's Succession

Suc/////sio/ wa/a /ula/B/i////that follows the Roy family, the owners of a global media and entertainment empire, as they struggle for power and control over their business and their personal lives. The show is a satire of the dynamics and challenges that many family-owned businesses face, such as succession planning, family conflicts, compensation disputes, and unclear roles. While the show is fictional and exaggerated, it can offer some valuable lessons for small family businesses that want to avoid the pitfalls and problems that the Roys encounter. Here are some of the main takeaways from Succession that small family businesses should pay attention to:

1.      Have a clear and transparent succession plan. One of the main sources of tension in the show is the lack of a clear and transparent succession plan for the CEO position of Waystar Royco, the family’s conglomerate. Logan Roy, the aging patriarch, keeps changing his mind about who should succeed him, and his four children all have different expectations and ambitions. This creates a lot of uncertainty, distrust, and rivalry among the family members. A clear and transparent succession plan can help avoid these issues and ensure a smooth transition of leadership. A succession plan should include the criteria and process for selecting the successor, the timeline and milestones for the transition, the roles and responsibilities of the current and future leaders, and the communication strategy for informing the stakeholders. A succession plan should also be reviewed and updated regularly to reflect the changing needs and circumstances of the business and the family.

2.      Communication. Another major problem in the show is the lack of open and respectful communication among the family members. The Roys often lie, manipulate, insult, and undermine each other, both in private and in public. They avoid having honest and constructive conversations about the issues that affect their business and their relationships. This leads to a lot of misunderstandings, resentment, and conflicts that damage the performance and reputation of the company and the family. Open and respectful communication is essential for building trust, collaboration, and harmony in a family business. Family members should communicate frequently and effectively, in person and in writing.

3.      Define clear and fair roles and compensation. A third challenge in the show is the lack of clear and fair roles and compensation for the family members who work in the business. The Roys often blur the lines between their family and business roles, and they do not have clear expectations and boundaries for their work. They also have different views on how they should be compensated and rewarded for their contributions, and they sometimes use their money and power to influence or coerce others. This creates a lot of confusion, frustration, and inequality in the business and the family. Clear and fair roles and compensation can help to prevent these problems and ensure accountability and equity in a family business. Family members who work in the business should have well-defined roles and responsibilities that match their skills, experience, and interests, and that are aligned with the goals and strategies of the business. They should also have clear and objective performance indicators and evaluation systems that measure their results and impact.

4.      Balance family and work. A fourth difficulty in the show is the lack of balance between family and work. The Roys are so consumed by their business that they neglect their personal lives and their well-being. They also have trouble separating their family and work issues, and they often bring their work problems home and their family problems to work. This affects their health, happiness, and relationships, both inside and outside the business. Balance between family and work is important for maintaining a healthy and sustainable family business. Family members who work in the business should have a clear distinction between their family and work time, and they should respect each other’s boundaries and privacy.

Succession is a captivating and entertaining show that depicts the drama and comedy of a family business. However, it also serves as a cautionary tale of what can go wrong when a family business does not have a clear and transparent succession plan, open and respectful communication, clear and fair roles and compensation, and balance between family and work. Small family businesses can learn from the mistakes and successes of the Roys, and they can apply these lessons to their own situations.

Do any of the four issues resonate with you and your business? If so, send us an email and we can schedule a complimentary 30-minute assessment.