Lessons from two successful father-daughter business transitions

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Successful family enterprises that span multiple generations rely on seamless succession plans. But once the reins have been handed over from one generation to another, the patriarch may remain in some capacity. If this relationship is not handled well, it can be a blockage to the seamless running of the business.

A patriarch may be reluctant to step back and let the next generation perform in their new leadership role, especially if he is the company’s founder.

Even if the founding patriarch wants to quietly remain in office part-time, the pressure that puts on the next generation can hinder their ability to fulfill their potential, which could not only jeopardize the father-child relationship, but also put the future of the company at risk.

But when the generations figure out how to handle the hand-over well, acknowledging the logistical and emotional complexities of the transition, it can herald a new beginning.

Here, two women who have experienced successful succession plans with their fathers discuss how to navigate the relationship with dad once he has passed the baton over to his children, but also remains in his corner office.

Karen Brookman, president and CEO of Calgary-based printing and information services company WCD

How was your relationship with your father during your succession experience?

“I think the best word to describe our relationship during the succession process of our family business is ‘strained.’ However, ironically, a year after our family worked through the process together, we were all closer than ever.

My father and I both went into the succession experience with different expectations and assumptions about the process and timeline. Neither of us fully appreciated what was involved or how we would feel going through the process.

I looked at succession as simply the transition of a job; a job that had a lot of purpose for me, one that I felt qualified for, and a position that I had been working towards most of my career. I was ready and eager.

I didn’t appreciate the depth and complexity of succession planning in a family business. For my father, succession was a significant transition. It was the end of a lifelong career path that involved a lot of emotion, change and a sense of loss.

Once we both realized that the process was more challenging than we anticipated, we got help. We ended up leveraging a succession program offered by Family Enterprise Canada. My sister, my father and I took a two-day course together, which provided a framework for succession. The information was enlightening and created a breakthrough for all of us.

We realized that succession takes time and requires planning, trust, and empathy. Conflict is a natural part of the process. It brought us back to the importance of family first. I also gained a new appreciation for what it meant to my father to give up his position as head of the family business.

When we finally completed our succession plan in November, 2019, it became a significant event that honoured the past, successfully transitioned my father’s legacy and celebrated a new beginning for all.”

Often patriarchs remain in the office in some capacity, even once they’ve passed the business on to the second generation. How has your dad’s role changed in that capacity?

“My father, George, has a beautiful corner office in our building filled with bookshelves and dark wood. It has a library quality to it, with photos, books and mementos representing almost four decades of his career. The office is a special place to meet and reflect on the history of our company and our family.

After our succession, my father transitioned to the role of chairman and company ambassador. He still comes into the office every day, walks the halls, reads the newspaper cover to cover and visits with employees. His presence is always upbeat and supportive, which validates the next generation of leadership.

Today, my husband, Allan Megarry, also works in the family business as our CFO. The three of us have agreed to have breakfast together every Tuesday morning. We discuss what is happening in the business, review financial results and discuss strategy.

My father has been extraordinary in letting go of the day-to-day decision making. He truly operates with a ‘nose in and hands out’ philosophy and is our most trusted advisor. We work to be generous with sharing information and staying open to his recommendations and ideas. My sister, Jennifer, my husband and I are all fortunate to be able to draw on his wisdom. When he is not at work, he has refocused his time on philanthropy, writing a weekly article in the Calgary Herald and working on community projects.”

How has the experience of having your father in the office half-days been, even though you are now running the family business?

“It has been easy and great. I give him full acknowledgement for making a personal decision to step back and not interfere with the current leadership team.

Only five months after we completed our succession, the pandemic hit. My father realized that strong leadership would be essential to lead the company through the crisis. He also recognized this as an opportunity for my sister, my husband and our management team to earn the trust and respect of our employees and key stakeholders.

He let us lead through one of the company’s darkest and most difficult chapters. I know this was [not] easy for him. Our ability to take on significant responsibility during a crisis and to demonstrate our competency furthered our succession plans and instilled trust in him.

My father is still a major shareholder in the business. As such, he remains actively involved in any material financial decision.”

Your story has been one of great success in terms of maintaining that bond with your father. What would your advice be to someone facing a similar situation?

“For me, it comes down to family first and working every day to build trust. The relationship and love I have for my family are more important than any job or company.

In our toughest moments, I was prepared to walk away if the business was going to jeopardize our relationships. Family businesses require honesty, humility and a willingness to compromise. There is give and take at all levels and in all roles. However, the trade-off is priceless.

The commitment level to success that we all share is unmatched. We are all in 150 percent and have enormous trust in each other. On our best days we have fun working together, playing to our unique strengths, and supporting each other to live our best life.”

Cathy Orr, president and CEO, Calgary-based office interiors company RGO Products Ltd.

How was your relationship with your father during your succession experience?

“Overall, my relationship with my father was quite strong. Of course, in the height of the transition, it could be difficult because it is difficult for a founder to let go and the learning curve is still steep because of the roles changing.

My father and I have always been very close, so in the difficult times, I had to keep remembering we are working toward the same end goal – for the business to continue to be strong and to have confidence that we would work through the challenges.

I learned to acknowledge the concerns and then keep asking clarifying questions and trying to keep the emotion out of the dialogue, which is not always easy to do.”

Often patriarchs remain in the office in some capacity, even once they’ve passed the business on to the second generation. How did your own father’s role change in that capacity?

“My father, Ross Glen, has continued to come in the office every day. He knows our people and is still very interested in what happens within the various companies. He is not involved in the day-to-day activities.

Ross is a very engaging, curious man – being at the office and involved at a high level gives him a purpose. He often interrupts my meetings. However, it is usually because he needs an answer. If I can’t talk or am engaging in something that can’t be disrupted, I tell him, and he takes it well – he is very resilient.”

How has the experience of having your father in the office some of the time been, even though you are now running the family business?

“At times, it can be a challenge. Our family life and business lives are intertwined so it is not always easy to separate – Am I the CEO or the daughter? My two core goals when I succeeded my father remain to this day: to continue to build the business and honour my family.”

Reflecting on your own experience over the years, what would your advice be someone facing a similar situation?

“Be intentional about the planning, teaching and opportunities for gaining experience in the different parts of the business, as appropriate.

It’s difficult to be fully prepared, but the more equipped one can be, the greater the confidence for both parties.

If the parent is there, through, and after the transition, there is still great access to knowledge, experience and best practices. Also, passing on the relationships is a great succession strategy, as it shows the commitment to the future.”

Responses have been lightly edited for length and clarity.

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• How Canadian family offices fit in with global peers
• Why next-generation immigrants clash with parents over money, business
• Better than ‘bank of mum and dad’: How to best support family ventures

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