Succession Planning in Family Businesses: Lessons from Murdoch, Walker's Shortbread, and Others
Succession planning is a critical challenge for family-run businesses as they strive to bridge current skills with future needs while managing emotional and family dynamics to avoid conflicts.
Rupert Murdoch and his children have reached a succession agreement extending to 2025, with Lachlan Murdoch set to take over the media empire.
In Scotland, Walker’s Shortbread uses a cousins consortium model that invites extended family involvement and pursues consensus on leadership. The company also appoints non-family directors or external advisors to the succession process. Walker’s Shortbread generates over £200 million in annual revenue, with Nicky Walker serving as managing director since 2022. The business traces its roots to founder Joseph Walker.
California-based Dr Bronner’s previously lacked formal succession planning after founder Emanuel Bronner died in 1997 without a plan, incurring a $2 million tax bill. Currently, Mike Bronner is planning for two future generations, with his son Eli showing interest in becoming CEO.
In Toronto, St James Town Steak and Chops is training two sons, Noah and Alex, for future leadership as owner Mark Michelin intends to keep the business within the family.
Despite these examples, a Robert Half survey found more than 40% of business leaders have not identified a successor when planning to move on. A 2025 report warns that lack of succession planning could lead to closures, job losses, and economic uncertainty, underscoring the importance of strategic planning in family enterprises.
