Heir styles

“The lesson is that, No. 1, this management has to be at the highest class possible. No. 2, they have to have a succession plan.” - Al Waleed bin Talal Al Saud.

 “Anyone who believes that I am getting out, please shove the bunting up your ass.” – Logan Roy, Succession.

I’ve been lucky enough to interview Stanford University lecturer Rachel Konrad twice in the last six months.

The first time was about her time as employee #10 – Director of Communications at Tesla, back when Elon Musk was still passionate about saving the planet.

Her background in Detroit’s auto industry heartland and later as one of the country’s most influential CMOs – advising corporate giants, helping them navigate the media’s treacherous waterways, makes her an ideal and credible source of information.

This podcast (The Succession Sessions) is the second interview – one that she suggested – given the waste that is present in so many companies around the world.

The waste of longevity.

Having the benefit of experiencing business life in the USA and the UK, I can confidently say that there is a huge difference in company leadership when it comes to succession.

In the UK, succession is treated at the same level as life insurance or will writing; it’s uncomfortable to talk about it.

But as we all know, the right thing is usually the hard thing.

Outside of the UK, the CEO’s exit is part and parcel of the strategy - especially in the USA. In France, they even have a board level position – secrétaire exécutif – who shadows the CEO and who sends a clear message to customers and clients that they are ready to take over.

Having a good succession plan for your business is a sound commercial move because it indicates a commitment to the long-term future. It demonstrates strong management, robust systems, and clear growth strategies that significantly impact a company’s market appeal.

It’s a nod to the fact that not only are you super fucking brilliant at being creative, but you can pick winners. You have vision, you have direction, ambition and you have groomed your team to look after the business carefully, and they’re not going to pull the ripcord as soon as the ink is dry on the cheque, leaving the new owners holding the bag, with no team to do the work.

Put simply, if you want top dollar for the valuation of your agency, then a robust succession plan maximises it.

Succession planning is a financial and an emotional decision – especially for founder-led or family-owned businesses.

But even if you are tired and think you want to spend time writing that book you’ve been dreaming about, or farming that Lavender to make oils and drawer scent pillows, think again.

Take a leaf out of David Droga’s book. The CEO of Droga5 who recently “retired” found that passing on the day-to-day responsibility of the company to someone else, freed up time for him to do the very thing he got into the advertising business to start with – being creative.

At the end of the show, Rachel told me about one exercise she gets her students to do – to write their own obituary, and she says that most describe their lives in three parts; growing up, career and fulfilment.

Creating a robust succession plan gives you permission to grow into that third phase.