Part 2: The Three Phases of a Strategic Succession

This is the second article in our two-part series on strategic succession. If you have not read the first article, you can find it here.

Once you have made the decision to begin thinking about your succession, the real process begins.

A successful transition is not only about what will happen, but about how the family approaches the task. It is the ongoing conversations, the careful planning, and the step-by-step handover that gradually shape the future ownership.

At Harbour, we work with a three-phased approach that helps build clarity, continuity, and strong collaboration across generations.

Phase 1. Planning: When will you step back? What comes next? And what should the future ownership look like?

A successful succession begins with reflection from the person or people who make up the current generation. What is important to carry forward? What should the future ownership look like; for example, do we envision that the next generation fills an operational role or joins the board? Should the business, if there is one, be sold fully or in part? And what should my/our next chapter look like after a long working life?

This phase is about building a clear understanding of the ownership: the values that guide it, the capabilities and ambitions within the family as well as the hobbies and the friendships that may have been set aside simply because there was never enough time.

The key: Focus and time spent on planning now avoids confusion – and potential conflict – later. This is the moment for you, as founder or current generation, to set out your wishes and define the strategic direction for the future ownership. It requires time, and one or two trusted advisers who can support you and challenge you when needed. In this phase, be careful not to base your thinking on too many assumptions about the future – both the overly optimistic (“my child has the professional and personal competencies required to succeed in my current role”) and the limiting ones that underestimate the potential that could be developed in the next generation.

Phase 2. Involvement: How do you engage the next generation and figure out what they want? How to prepare them for the ownership role?

A well-managed succession requires active involvement. The next generation needs the chance to understand the overall ownership and the company (if such exist), gain relevant experience, and become familiar with the structures and culture that shape it.

When the next generation feels seen, heard, and well prepared, confidence grows – both yours and theirs – that they can handle the responsibility you are preparing to hand over.

The key: Create a process in which learning and responsibility go hand in hand. This is not about control but about giving space, and you need to listen to the next generation in this phase. Many carry a strong sense of duty and may become involved in the ownership out of obligation rather than out of genuine motivation. Pay close attention to whether the interest seems real. A handover rarely succeeds if becoming the next CEO is not truly a life you want. If not, the planning phase needs revisiting to look at alternative options.

Phase 3. Anchoring: Forget the baton, plan a phase, where you co-exist instead?

A successful succession relies on collaboration. When the three elements: planning, involvement and anchoring, work together, succession becomes more than a handover: it becomes an opportunity for the family to grow together.

In companies where the family is active in day-to-day operations, a respectful anchoring period is essential – often lasting from six months to five years. It ensures continuity while employees, customers, the board and others adapt to the change and adjust to the new leadership.

Whether the succession involves an operating company, a family office or a foundation, it is vital to have open conversations about future roles and responsibilities. This allows everyone to work towards a plan that includes shorter or longer periods of working side by side, ensuring both continuity and renewal.

The traditional story suggests that the founder should “pass on the baton” and walk out the door for good on their final day before retirement. A well-managed anchoring phase takes a different view: it allows the founder to maintain a meaningful role as mentor and support to the next generation. This requires humility and mutual respect – the ability to coexist professionally and recognise each other’s different styles and contributions. But when it works, it strengthens both the company, the joint wealth management and, importantly, the family itself.

The key: Communication, clarity and respect for each other’s skills and working styles. A well-managed anchoring phase makes the transition run smoothly and helps the family feel at ease.

As we outlined in the first article, succession is far more than a transfer of shares or titles. It is one of the most significant moments in a family ownership, and it therefore requires time, reflection, and ongoing dialogue. The three phases provide a helpful framework, yet families will often move between them as new questions arise or circumstances change. This allows them to create clarity and strengthen their shared understanding of what should be carried forward in the ownership.

Read more about succession here or feel free to contact us for an informal conversation about the options in your family ownership.