How to announce a succession to the company and the board

To announce a family business succession well, tell people in a deliberate order, from those closest to the decision to those furthest away, within as short a time as possible. Typically that means the family first, then the board, then the senior team, then the whole company, then key partners such as the bank and the largest customers, and finally the public. The founder and successor should announce it together, the successor should speak in their own name, and everyone should hear a clear message about what changes, what does not and when.

Why the order matters

People judge a leadership change partly by how they heard about it. A senior executive who learns of the succession from a customer, or a sibling who reads it in a company email, will remember that more than anything said in the announcement itself. Each group that hears late, or second hand, starts the new leadership relationship with a grievance.

A practical sequence

1. The family

Every family member who is affected should hear it directly, in person if possible, before anyone outside the family. This is especially important for siblings who are owners or who work in the business, and for anyone who might have hoped for the role.

2. The board

The board has usually been involved in the decision. If not, it must be formally informed and, where required, approve it before any wider announcement.

3. The senior team

Senior executives should hear it in person, ideally from the founder and successor together, shortly before the rest of the company. Give them time to ask questions. Some will have worked with the founder for decades and will want to know what the change means for them.

4. The company

The whole organisation should hear it at the same time, from the founder and successor together, in person or in a live company meeting. A written note can follow, but it should not replace the meeting.

5. Key partners

The bank, the largest customers and the most important suppliers should hear it personally, by a call or a visit, ideally on the same day as the company. Partners who learn about it from the market tend to worry more.

6. The public

Press release, website and industry announcements come last, once everyone who should hear it personally has done so.

Keep the whole sequence short, ideally within a day or two. The longer it takes, the more likely the news travels ahead of you.

Who speaks, and how

The founder and successor should appear together. The founder’s role is to transfer trust: to say clearly why the successor has their full confidence. The successor’s role is to show who will now lead.

A simple structure works well:

The founder opens briefly, acknowledging the history and handing over explicitly.
The successor speaks, in their own name and at more length.
Both take questions, with the successor answering most of them.

What the message should contain

What is changing: who leads, from when, and what the founder’s new role will be.
What is not changing: the values, the key commitments, people’s jobs where that is true.
When: the dates of each step, if the handover is staged.
What happens next: how people can raise questions, and when they will hear more.

Clarity about what is not changing matters more than most families expect. Uncertainty is what makes people anxious.

Mistakes that create rumours

Letting it leak. If too many people know in advance, the news travels before the announcement.
A written announcement only. An email feels distant for a change this personal.
The founder speaking for the successor. It suggests the successor is not yet really in charge.
Vague dates. “Over the coming period” invites speculation.
Promising nothing will change. If things will change, people will remember the promise.

Prepare the successor’s part

The announcement is often the successor’s first address as the leader, and it is remembered. Rehearse it out loud, record it, and prepare answers to the questions people are most likely to ask, including the uncomfortable ones.

In short

Announce in order: family, board, senior team, company, key partners, public, ideally within a day or two.
Founder and successor announce together, the founder transferring trust and the successor speaking in their own name.
Say clearly what changes, what does not and when.
Avoid leaks, email-only announcements and vague dates, and rehearse the successor’s part.

The announcement is one of the agreements made in the handover session at the end of the Second Chair™ program, and the successor’s first address is rehearsed beforehand.