Having had a front row seat to countless family disputes, my first comment was that reality can be even more complicated than what was depicted on the show.

Amidst the ruthless world of corporate politics, the show raises important questions about how a wealthy family should protect its own interests, generate harmony with its children, and ultimately create sustainable multi-generational wealth. Pretty much by not doing everything that Logan Roy is doing.

1. Trust: the Elusive Golden Key

One of the key lessons from Succession is the vital role that trust and transparency play in protecting family wealth. The Roy family’s constant power struggles and backstabbing highlight the destructive consequences of secrecy and mistrust within a wealthy dynasty. Instead, establishing a culture of trust among family members and cultivating transparency in financial matters can build a solid foundation for sustained wealth. Open communication, honesty, and shared decision-making processes help avoid internal conflicts that will jeopardise a family’s long-term prosperity.

2. Avoiding Family Feuds, instead Nurturing Positive Family Dynamics

Succession underscores the significance of fostering harmony within a family. The series portrays the adverse effects of dysfunctional relationships and the lack of emotional connection among family members. To create sustainable multi-generational wealth, a family must prioritise nurturing positive dynamics to develop a sense of unity and purpose.

3. Finding the Family’s Purpose of Capital

Most of today’s wealth holders came from nothing. Through the blood, sweat, and tears of building a successful business, with significant sacrifices along the way, it was not just ambition and drive that led to success, but also desperation to ensure there was food on the table every day and a roof over the family’s head.  Long after safety and success have been achieved, often the primary focus of the founder is still on continuing to grow their wealth at all costs. The level of wealth equals the feeling of safety. Succession prompts us to reflect on the importance of values in decision-making processes. A family should establish a set of shared values and principles that guide their actions and investments. Aligning financial decisions with these core values can help maintain the integrity and sustainability of their wealth. Prioritising social responsibility, ethical investments, and philanthropic endeavours allows a family to make a positive impact on society while safeguarding their reputation and legacy.  One of my favourite Warren Buffett quotes sums this up well: “If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”

4. Safeguard your wealth with a multi-generational survival plan

The family business that created sufficient wealth to last more than one generation is the family’s crown jewel.  But in every economic downturn there are many stories of mighty business empires collapsing from too much debt and no liquidity.  The latest example of this is the Swedish debt-fueled real estate bust that has hit SBB, Ilija Batljan’s $13 billion empire. 

The founder of the family business will often expect a similar return from the financial portfolio as the business achieved.  Just like a business, the more aggressive the financial portfolio, the higher the risk of ruin. If the family business and the financial portfolio suffer this at the same time, it is game over. I have seen this happen too many times. The correct way instead is to manage the financial portfolio as the family’s safety net, providing for all the family’s needs for future generations. 

In Succession, a solution that would likely never have been contemplated by Logan Roy would have been to sell their company, Waystar RoyCo, a long time ago, instead of using it as a source of discontent between the children.  Families are lifelong connections that strive for equality and unconditional love.  A business is the opposite. Mixing the two is possible by incorporating the steps above, but can only be achieved by careful thought and planning.  Not doing so puts the family’s relationships, as well as its wealth, at risk.  A business is like another child to its founder, which sometimes gets more time and attention than the real children.

Considering the emotional dynamics of family relationships compared to the rational nature of business, it is advisable to establish an oversight board comprising both of family owners and independent advisors. Implementing this governance structure at an early stage allows the family ample time to familiarise themselves with it while benefitting from the founder’s mentorship of future leaders and owners.

Entrusting influential positions within the company to family members can jeopardise professional competence and reputation. It is essential to introduce an employment policy, ideally before any family member joins the business. This is a crucial governance document that is rarely implemented in family businesses.  This policy encompasses various aspects, but its fundamental principle lies in setting higher standards for family employees compared to non-family employees. Unfortunately, reality often reflects the opposite scenario. When the family business constitutes a significant portion of the wealth, the stakes are too high to overlook this issue. While the Roy family with their animosity would disregard proper governance, it is still possible to rebuild trust and salvage the legacy even in extreme cases where family members are not communicating with each other. 

Today’s inheritors are receiving the greatest generational shift of assets in history.  As viewers of Succession, we can learn from the triumphs and failures of the Roy family, realising that sustainable wealth is not solely measured in monetary terms, but also in the strength of familial bonds, a shared vision, and a commitment to the greater good.