Billionaire Rupert Murdoch is stepping down as chairman of both Fox Corporation and News Corp, handing over the reins to his son Lachlan after a career of almost 70 years. The move marks the end of an era for one of the most influential and controversial media moguls in history, who built a global empire spanning newspapers, television, film, publishing, and digital platforms.
So what can other businesses learn from the succession of the Murdoch business? Here are some issues and opportunities I take away from thinking about this story:
- Communication and transparency. Succession planning is not something that can be done in secret or based on assumptions. It requires open and honest dialogue among all the stakeholders, including family members, board members, managers, employees, and customers. The Murdochs have sometimes been secretive about their succession plans, which has caused confusion, conflict, and uncertainty among their businesses and the public. A good practice for succession planning is to be as transparent as possible with your plans, and to communicate them clearly and consistently to all the relevant parties.
- Governance and structure. Succession planning is not only about choosing a successor(s), but also about defining the role and responsibilities of the successor, and ensuring that they have the authority, support, and resources to lead the business effectively. In private family business, this also includes ensuring that the legal structures align with the desired outcomes. The Murdochs have had difficulties in balancing the interests of their family members, who own a majority of the voting shares in both Fox and News Corp, with those of the minority shareholders, who have often challenged their decisions and performance. It is essential to have a strong governance structure that ensures accountability, oversight, and alignment of goals among all the shareholders along with ensuring the legal structure of entities allows for effective succession.
- Development and preparation. Succession planning is an ongoing process that involves identifying, developing, and preparing potential successors for their future roles. The Murdochs have been grooming Lachlan for years, giving him exposure to various aspects of their businesses, and entrusting him with key positions and projects. However, they have also faced criticism for favouring their family members over other qualified candidates, and for not providing enough diversity and inclusion in their leadership pipeline. Effective succession planning should consider the creation of a talent pool that reflects the diversity and potential of your workforce, and to provide them with regular feedback, coaching, mentoring, and training opportunities.
- Innovation and adaptation. The Murdochs have been pioneers in many fields of media and technology. They have faced competition and disruption from new entrants and changing consumer preferences. They have had to adapt their strategies and products to keep up with the evolving market demands and opportunities. Succession planning is not only about preserving the legacy of the past, but also about creating the vision for the future. Your organisation should foster a culture of innovation and adaptation, and to encourage successors to embrace change and challenge the status quo.
Succession planning is one of the most important and complex issues that any business owner or leader will face. It requires careful planning, execution, and evaluation to ensure a smooth transition and a sustainable future for your business. The Murdochs have shown both the successes and failures of succession planning in their family business dynasty. By learning from their experiences and those of others, you can improve your own succession planning practices and prepare your business for the next generation of leadership. We have had significant experience in assisting the owners/leaders of privately owned businesses in successfully transitioning their business to the next phase, whether it be family succession, leader succession or trade sale. Reach out if you'd like to discuss.
Global People Experience Leader ? Learning & Org Development Specialist ? Leadership & Executive Coach ? Board Member
1 年?? - - and sadly many businesses often fail to successfully deliver on any of these four areas of effective succession planning for high impact / business-critical roles. The proportion of business without clear talent maps / succession plans is somewhere in the region of 75-90%, depending on the study you happen to be reading. It all results in a mad scramble, leading to rushed and heavily biased hiring decisions to fill urgent gaps, internal politics / power struggles, broken or unclear decision making and approvals processes and lower productivity overall, resulting in top talent flight, client confusion and frustration, reduced revenue and loss of existing or new business, significant and long-lasting impacts to cultural cohesion and potential legal liability.