The central challenge in this succession planning case was creating an integrated transition framework that would simultaneously address leadership succession, ownership restructuring, and governance evolution across multiple legal jurisdictions while balancing competing priorities: maintaining the operational excellence and brand integrity that had driven the company’s success; ensuring fair treatment among family members with vastly different levels of contribution and capability; minimizing global tax implications of ownership transfers; creating liquidity options for family members who might wish to exit partially or completely; establishing effective checks and balances between management, board, and shareholders; and accomplishing this complex transition while the business continued to operate and expand in a highly competitive industry. This required navigating significant emotional dynamics around the founder’s reluctance to relinquish control, unspoken expectations among family members, and the need to formalize what had historically been relationship-based decision processes.
We began with a thorough assessment of both business and family dimensions through parallel workstreams. Our business analysis included detailed evaluation of corporate structures, property holdings, management systems, succession-critical relationships, leadership capabilities, and financial projections across all jurisdictions and business units. Simultaneously, we conducted extensive individual and group interviews with all adult family members to understand their aspirations, concerns, capabilities, and perspectives on the family enterprise. We utilized specialized assessment tools to identify potential successor candidates for key leadership roles and evaluate family members’ readiness for governance responsibilities. Through facilitated family meetings, we helped the family articulate shared values and vision for the future of both the business and the family’s relationship to it. This assessment phase culminated in a three-day family retreat where we presented our findings and facilitated structured discussions that established the fundamental principles and objectives that would guide the succession planning process.
Based on the assessment results and family alignment achieved in phase one, we designed a comprehensive succession framework addressing three interconnected dimensions: leadership transition, ownership restructuring, and governance evolution. The leadership plan included identifying Mr. Kang’s son-in-law as CEO successor with a structured three-year transition process, creating a new executive committee including both family and non-family leaders, and developing individualized development plans for third-generation members in management roles. The ownership restructuring centered around establishing a Singapore-based family holding company with specialized sub-entities for different asset categories and geographic regions, creating share classes with different voting and economic rights to balance the interests of active and passive family owners. The governance framework included a formal board structure with independent directors, a family council with clear decision authorities, and a family office to manage shared assets and provide services to family members. Throughout the design process, we modeled different scenarios to test how the proposed structures would function under various future circumstances, making refinements based on family feedback and business requirements.
With the strategic framework approved, we proceeded to create comprehensive documentation across multiple dimensions of the succession plan. This included revising corporate governance documents, drafting shareholders’ agreements with appropriate transfer restrictions and dispute resolution mechanisms, creating a detailed family constitution articulating values and policies, establishing new trust structures in relevant jurisdictions, and developing tax-optimized mechanisms for ownership transfers. For the leadership transition, we created detailed implementation plans including transition timetables, communication strategies for key stakeholders, and protocols for gradually transferring relationships with critical business partners. We also established a family education program to prepare next-generation members for their future ownership and potential governance roles. Throughout this phase, we coordinated closely with the family’s tax advisors, corporate counsel in each jurisdiction, and financial planners to ensure all aspects of the plan worked cohesively while complying with applicable regulations.
The final phase focused on executing the succession plan while establishing mechanisms to ensure its long-term sustainability. We created a formal transition committee with representatives from key stakeholder groups to oversee implementation, monitor progress, and address emerging issues. We developed specialized onboarding processes for independent board members and established operating protocols for the new governance bodies. Recognizing the importance of preserving institutional knowledge, we implemented structured processes to document Mr. Kang’s key relationships, decision-making approaches, and strategic insights. We also established regular review mechanisms for all aspects of the succession framework, creating appropriate flexibility to adapt to changing business and family circumstances. Throughout the implementation period, we provided ongoing facilitation support for family meetings, coaching for individuals in new roles, and guidance for navigating the inevitable challenges that arose during the transition process. Finally, we helped the family establish relationships with advisors and resources that would support their governance system after our formal engagement concluded.
After eighteen months of intensive work, the Kang family successfully implemented a comprehensive succession framework that has transformed their approach to business leadership, ownership, and governance. The CEO transition is proceeding according to plan, with Mr. Kang now serving as Executive Chairman with clearly defined responsibilities while his successor has assumed day-to-day leadership with growing confidence and stakeholder support. The new ownership structure has been implemented with tax-efficient transfers completed or in process according to the established timeline. The governance system is functioning effectively, with the board providing valuable strategic guidance, the family council addressing family-related matters, and clear separation between ownership and management decision rights. Most notably, the family successfully navigated the Australian expansion opportunity during this transition period, demonstrating the resilience of the new leadership and governance structures. Family members report significantly improved clarity about their respective roles, rights, and responsibilities, with effective mechanisms for addressing concerns before they escalate into conflicts. This case exemplifies how thoughtfully planned and executed succession strategies can ensure continuity and growth for complex family enterprises while strengthening family cohesion across generations.