Succession Planning for Family Firms: Lessons from Global Examples

When high-profile family leadership changes grab headlines, business owners learn a simple truth: a formal plan for succession helps avoid emotional clashes and costly disputes. The recent agreement within the Murdoch family shows why orderly transitions matter for any family-run company.

Below are three family-owned firms from different regions and what they do to plan for the next generation of leaders.

Walker’s Shortbread, Scotland’s best-known biscuit maker and a major exporter, has its roots in 1898. Today Joseph Walker’s great-grandson, Nicky Walker, leads as chief executive.

Walker describes a cousins consortium approach: extended family members are invited to join the business and discuss where they might contribute. If someone wants to come into the business, there is a role for them, he explains, noting that growth creates future careers within the company.

When disagreements arise, the aim is consensus and decisions that serve the company first. The family also uses external advisers for formal succession planning and maintains an executive board that includes non-family directors.

Experts say that building a robust plan is essential to bridge today’s skills with tomorrow’s needs. Charlie Grubb, senior managing director at Robert Half, notes that emotional dynamics can complicate choices, so separating family ties from leadership decisions is critical for clear governance.

Canadian data this year from Robert Half shows that more than 40 percent of business leaders have not identified a successor when planning to step down, underscoring a common risk for family firms. A separate 2025 report warns that poor succession planning can raise the likelihood of business closures and job losses.

Dr. Bronner’s, the California maker of soaps and personal care products, faced lessons from past missteps when founder Emanuel Bronner stepped back in the 1990s due to health issues and left the company facing a sizeable tax bill. Mike Bronner emphasizes the need for a formal, generational plan to preserve the company’s values across two generations. He notes his son Eli has expressed interest in becoming CEO, joking that the mission and even the free lunches motivate him.

St James Town Steak and Chops, a Toronto butcher and delicatessen, has taken a hands-on approach by training Mark Michelin’s two sons, Noah and Alex, to lead when he retires. Patrons value the continuity and the sense that the business remains in family hands.

In Aberlour, Scotland, Nicky Walker reflects on the privilege of running a multigenerational family business and stresses the duty to support and mentor the next generation. The emphasis is on clear backing and guidance, ensuring successors grow into leadership with confidence.

Across these examples, the common thread is proactive governance: involve the next generation early, define roles, and bring in external expertise when needed to balance emotions with strategy. A thoughtful plan helps families preserve values while enabling sustainable growth across generations.

Expert commentary: Building a succession plan is as important as day to day operations. Involve the next generation early and separate family dynamics from leadership decisions to maintain governance that serves the business, not just the family.

Short summary: Family firms prosper when succession is planned well and governance includes non-family professionals. Early involvement of successors, clear roles, and external advisers can reduce conflict and smooth transitions, safeguarding the business across generations.

Key insight: Clear succession planning helps family-owned businesses protect values and ensure smooth leadership transitions across generations. BBC News