– By Dr Rajiv Agarwal
The recent conclusion of the HBO Series “Succession” left a bittersweet impression. It was a series based on a family in the media, which some people have attributed to a very big US based globally operating media family. On the positive side, series like Succession do allow one to get a peep into the lifestyles of such families, eg charter jets and limousines on demand, holidays in exotic locations, extravagant parties and celebrations, all add up to make viewing a vicarious experience, even if momentarily over the four seasons.
But I saw a few similarities and learnings for Indian families also. Let’s dive in.
1. The role of the Patriarch: The father, the founder of the business has a very large role to play, and his presence also has an influence. The fact that Logan Roy chose to sell out the company rather than pass it on to his children speaks volumes of the confidence he may have had in their abilities to carry on the business. He is also shown as continuously maneuvering effortlessly his way out of various challenges which come his way. This lesson is not lost on Tom when asked to take sides between Kendall and Logan, stating that he never saw Logan get into trouble. One can see the power and authority that Logan wields and consequent respect that Logan gets amongst the various stakeholders, including top politicians. And all the others are seen, as nowhere near his stature. One sees similar parallels in Indian family businesses where the patriarch enjoys a larger-than-life reputation, as compared to the other family members. This creates challenges for the next generation who struggle to fill in the very large boots of the founding patriarch. We have not yet seen patriarchs choosing to sell out to third parties (considered taboo in the past), but with the increasing number of private equity plays occurring in the Indian corporate space, this could become a serious option in the near future. The role of the next generation in such cases, will have to be considered.
2. The ever-changing mistrust and rivalry between the siblings: The siblings were manipulated by the father, who gave each an impression that they were next to take over. One could see the battle between the siblings as each asserted his/her power as the rightful claimant for succeeding on the throne. While Kendal asserted his right as the eldest male child, the sister and younger brother stated that they had been told by the father of being the chosen one. Along with the lack of a clear will, another document with corrections in pencil just added to the confusion. Acts like these lead to mistrust and constant alliances and re-alignments between family members.
We see this in families where the patriarchs choose not to be clear amongst the next-gen and play with their emotions, making promises when they are alive, for future generations to fight, when their expectations are not fulfilled. This could also lead to situations, where they may prefer to partner with external persons, rather than the family. We have seen this happen in multiple cases, in families all over the world, leading to the downfall of family businesses and breakdown in family relationships.
3. The picking of sides by the extended family: One saw, as the show went on, that the extended family chose sides at various times to secure their position and insure their interests. The extended family cousins, in-laws, ex-spouses, etc. Terms like “Quad squad” were being used by a cousin trying to fit into the three-sibling team. Additionally, the bromance of Greg and Tom, to rally together to fight battles realizing that there is safety in numbers showed that they were willing to do anything for their self-preservation and further their interests.
4. The jostling of power with the non-family members: Frank, Karl and Gerri were the senior professionals heading the family business and their loyalties were tested on multiple occasions. Life had been tough under Logan, where each was supposedly clear of the path to follow, and they had settled down to their understanding how Logan worked. This changed post Logan, as they were lost while the siblings fought for power, and they had to choose their loyalties very carefully. One could see the challenges they faced, in trying to maintain a balance amongst the siblings’ own power struggles and their own efforts to retain their jobs. I am reminded of various firms where old loyalist professionals are treated one way, and when the next generation takes over, there is usually a purge and they are all usually replaced with younger persons. In case of disputes amongst the family members, the non-family managers are supposed to hold fort and keep the wheels turning, while they go through their own uncertainties of their future.
The series had a lot that could be useful for families to ponder on. The story of succession is not just of a fictitious family but has lessons that any business family can learn from. The strained relationships between father and children, and various interpersonal relationships driven by their individual insecurities is something that any family can face. Though the scale of the business may have been out of reach of most families, the lessons are applicable to any family. Lessons that a good communication and clarity of purpose, transparent governance, and a well drawn out future plan for each family member and the business, would go a long way in helping family businesses avoid the trauma that the Logan family and the global media and entertainment conglomerate Waystar RoyCo had to endure.
One can only hope that for the sake of the future of family businesses, these are lessons well learnt.
(Dr Rajiv Agarwal is the Professor – Strategy, Family Business and Entrepreneurship at SPJIMR.)
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