Why is Succession Hard?

Succession planning is often delayed in construction and contracting businesses — not because owners don’t care, but because the topic is deeply personal. For many founders, the business is more than a job; it’s an identity, a legacy, and a source of pride.

In this episode of the Cabinet Maker Profit System podcast, Dominic Rubino speaks with Josh Baron, Harvard Business School professor and co-author of the Family Business Handbook, about why succession planning is so challenging and how contractors can approach it more effectively.

The ARC of Succession: Assets, Roles, and Capabilities

Josh explains that most failed transitions focus on only one issue, usually ownership. Successful succession requires balancing three areas:

Assets – Who owns the business and how ownership is transferred
Roles – How leadership responsibilities shift over time
Capabilities – Preparing the next generation to lead effectively

Ignoring any one of these creates confusion, resentment, and long-term risk.

Why Founders Struggle to Let Go

For many contractors, stepping back raises difficult questions about identity, purpose, and relevance. Without a clear role after transition, founders often reinsert themselves into day-to-day decisions, unintentionally undermining the next generation.

A successful transition requires planning not just for who takes over — but for where the founder goes next.

The Four Rooms of a Family Business

Josh introduces the Four Rooms Model to help families separate conversations:

1. Management Room – Running the business day to day
   
   
2. Board Room – Strategy and leadership decisions
   
   
3. Owner Room – Ownership, values, and big-picture choices
   
   
4. Family Room – Relationships and family matters
   
   

When these conversations are mixed together, conflict grows. When they’re separated intentionally, clarity improves.

Preparing the Next Generation

Working outside the family business builds:
• Confidence
• Competence
• Credibility

This outside experience helps future leaders earn respect and bring valuable perspective back into the company.

Final Thoughts

Succession doesn’t have to destroy families or businesses. With intentional planning, honest conversations, and clear governance, it can become a powerful legacy-building moment.

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More About Josb Baron: LinkedIn | Book | Company Website | Instagram | YouTube Channel

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