Dublin, 1868. The death of Sir Benjamin Guinness left his four children – each guarding secrets – struggling to decide the brewery’s future. It is, of course, a dramatised take on the true story but nevertheless, Netflix’s new drama House of Guinness highlights how the lack of a clear and agreed succession plan can unravel even the strongest family businesses.
To help SMEs today sidestep similar pitfalls, Dr Nan Jiang, an expert in family succession at Brunel Business School, draws on her work supporting business leaders though the government-funded Help to Grow: Management Course and many years of her own research into the subject to share essential transition tips:
Balancing heritage with innovation
The conflict in House of Guinness often pits tradition against progress, a common source of tension as one generation takes over from the next. However, the goal for any family business is not to prioritise one over the other, but to find a balance that respects – and benefits from – both.
An incoming successor must be able to honour the core values and heritage the founders built, while also having the mandate to drive the innovation necessary to stay competitive. This means embracing new markets, technologies, and opportunities without losing the legacy of the brand.
To achieve this, it’s important to involve future leaders in long-term planning well before they take over, to ensure they feel comfortable that the bold decisions they make in the future feel like part of an agreed and expected evolution.
Few businesses demonstrate this as well as Timpson. It has been a family-run business for six generations, with the latest generation joining in 2023 to prepare for the time when they will eventually be called upon to lead. Over its 150-year history, the Timpson Group has expanded and evolved significantly, now operating over 2,000 shops across 20 businesses spanning everything from online photo printing to dry cleaning.
Throughout that journey, each generation has maintained a consistent commitment to ‘doing things the right way’ and putting people first – a philosophy most recently recognised when James Timpson was appointed Minister of State for Prisons, Probation and Reducing Reoffending in 2024, following the company’s pioneering work reintegrating ex-prisoners into the workforce.
Developing the next generation early
The drama in House of Guinness highlights the peril of a sudden power vacuum, where no single successor has been properly groomed. Irrespective of the size of the company, a smooth transition cannot happen overnight; an incoming leader should be embedded within the business for years, not days, before they take the helm.
This extended apprenticeship allows them to understand the company’s unique nuances, build their own leadership style, and gain credibility before they take the top job. Early involvement in business operations also helps successors naturally inherit crucial relationships with key partners, clients, and senior team members – intangible factors that often underpin an organisation’s success.
Laing O’Rourke Group CEO Cathal O’Rourke served a 25-year apprenticeship, running the company’s Australian arm for over a decade and then serving as chief operating officer, before he finally took over from his father and company founder Ray last year. This was acknowledged by his father as positioning him perfectly to lead the business into the future while upholding its values and guiding principles.
Building buy-in across the team
Of course, a famous surname does not automatically grant authority (even when that surname is Guinness). Employees and customers must see the new leader as competent in their own right. The outgoing leader plays a vital role here, by clearly defining the successor’s role and creating transparent pathways for career progression that help the entire team believe in the new vision.
John Perkins, Specsavers’ CEO, exemplifies this principle. Despite being the son of founders Mary and Doug Perkins, John built his credentials outside the family business first, qualifying as a chartered accountant and working as an Audit Manager at Deloitte before joining Specsavers in 1998.
He then moved his way up the company ladder, working in UK stores and alongside international teams, and progressing through roles including commercial director. He joined the board in 2003, became joint managing director in 2007, Group CEO in 2015, and more recently sole CEO. By proving himself at all levels within the business, as well as outside it, John firmly demonstrated his competence to his employees rather than relying on his family name alone.
Knowing when to step back
Perhaps the most critical, and often the most difficult, step is for the outgoing leader to recognise when and how to retreat. This is a question that SME leaders of family firms participating in the Help to Grow: Management Course often spend time working through with their 1-2-1 business mentor.
The shadow of a founder or long-serving patriarch can easily undermine a new leader’s confidence and authority. Moving to a background role, such as Chairman, allows them to remain connected to the business they built while physically and psychologically passing the baton.
The key is a genuine handing over of control, empowering the new generation to establish its own authority and make its own mark. The former leader’s role shifts from commander to a trusted source of counsel, offered only when needed.
A good example from the sports world is Matchroom Sport and the Hearn family. Barry Hearn, the charismatic founder who revolutionised snooker, darts, and boxing promotion, consciously began stepping back in the 2010s, handing the reins to his son, Eddie. Barry moved upstairs to the role of Chairman, a position that kept his name and wisdom in the business but ceded day-to-day operational and strategic control to Eddie.
The final word
The ideal succession plan is a years-long process of preparation, trust-building, and, ultimately, letting go. By putting processes and priorities in place well in advance of the ultimate handover point, family businesses can secure an enduring legacy and avoid the sort of turmoil that frames House of Guinness.
