Company year of founding: 1928
Location: Aberdeenshire
Turnover: £75 million
Number of staff: 260
Generation of Business: 3rd
transplant, which prompted him to call Alastair into his office and ask, “what would you do if I don’t come back from this?” Which prompted Alastair to run into the next room and type out a list of things he would do if he were in charge. His father survived the operation, thankfully, but that piece of paper became the foundation of the Macphie succession plan. Which leads to another piece of advice, this one for the Next Gen: “Start your planning even before you get the job.” Meanwhile the Now Gen needs to be planning how they leave, and how to train their successor. “If the Next Gen isn’t ready, bring in a hired gun to facilitate that transition.” “Remember also that Plan A usually does not work out as you’d hoped. Plans B, C and D also need to be thought about.” Having a sounding board is vital to test the logic of succession plans. Alastair has relied on a couple of different non-family advisors to tell him when he’s being blinkered to the relative strengths of family members. A final ingredient to creating a succession plan is trust. “Trust is a word that can be easily misinterpreted. Trust has to be earned and given. Those things take time to nurture.” “Trust in people, to and from, is crucial” Alastair concludes. This includes the older generation trusting in the ability of the Next Gen to take over. “Trust yourself to make the call.”
The succession conundrum
Since succession planning is essentially like writing a will for your business, why are so many family businesses avoiding it? That’s a question troubling Alastair Macphie, third generation owner and until recently Chair of the food manufacturing and wholesale business that bears his name. “If 90% of businesses globally are family owned, and something like 80% of family businesses don’t have succession plans, that’s insane”, Alastair laments. But there are several logical reasons why succession is not the top agenda point at family meetings. “There is a lot at stake”, Alastair says. “Passing on responsibility often comes with assets, so it is a big load for anyone’s shoulders.” Plus, committing to one person of the Next Gen may cause family tensions. There are emotional dynamics at play. Meanwhile, the Senior Gen may have mixed feelings about stepping back. “They know their energy levels are dropping, but they also know they have a lot of valuable experience, which they don’t want to see lost.” That is why Alastair himself has stepped down as Chair but remains as a non-executive director at Macphie, specifically so he can continue to advise on a deal involving a company asset nobody knows better than he does. Nonetheless, stepping back from full-time duties has given Alastair some time to reflect on succession planning, and he has some advice. Make sure your timing is right. “There are undeniably some bad times for raising the succession question – for example, for macroeconomic reasons. But a bad time could also be if the family isn’t ready. You need to pick a time that suits the family.” Sometimes, events catalyse the discussion. Alastair recounts the time his father was going into surgery for a kidney
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