theglobeandmail.com
June 3rd, 2025
When it comes to succession, psychological factors such as motivation and relationship dynamics are just as important as understanding the business operations and budget, experts say.
There’s a reason so many movies and television shows are about succession. Money and the transfer of power across generations can be rife with tension, sometimes putting the family business at risk, which makes for a good story.
In real life, many families try to avoid the drama that can come with preparing the next generation to take over the family business.
Succession planning that includes business and behavioural elements can help smooth the transfer of power while ensuring business continuity and setting it up for future growth. Some experts believe psychological factors, such as motivation and relationship dynamics, are just as important as understanding the business operations and budget.
A recent HSBC report suggests many are procrastinating, finding two-thirds of business owners in North America have no succession plan in place…
The psychology around family dynamics is really at the top of the pyramid, especially when it comes to succession planning. Too often, families ignore the psychological factors that can influence the process of preparing individuals to take on leadership roles, especially when it comes to thorny issues like passing on control of the family wealth or the family business to the next generation.
Bill McLean, Partner, Richter Management
