Simple Truths for Successful Business Transitions
I recently read a blog post by Morgan Housel in which he makes the point that architecture that wins awards and looks great in magazines is often not very practical for the people who actually live in it. Similarly, he says that investing advice that sounds beautiful and intelligent is often not particularly useful for the average investor.
I think the same is true when it comes to business transition and succession planning counsel.
It’s easy to be drawn toward advice that sounds smart and innovative. Many of us fall into the trap of what’s known as sophistication bias—the tendency to overlook simple, practical ideas in favor of those that seem more complex or intellectually clever.
We also live in a world saturated with information—case studies, books, podcasts, articles—all offering different perspectives on what you should do. It is hard to distinguish what’s actually helpful from what’s just noise. And more often than not, we end up feeling more stuck and confused than when we started.
I don’t want to minimize the value of thoughtful planning techniques and tools—there’s certainly a place for them, and when applied appropriately, they can offer significant value. That said, beginning with the basics, applying common sense, and keeping things simple is almost always a wise choice.
With that in mind, here are a few practical tips that, while often overlooked, are incredibly useful in all every ownership and leadership succession endeavors:
- Start early
- Communicate often
- Develop deep clarity about your priorities
These simple and timeless disciplines won’t solve every issue, but it’s amazing how much value they can unlock.
At North Group, we’ve seen firsthand how the most effective transitions are often grounded in these kinds of straightforward truths. If you’re navigating the complexities of succession or ownership transition or don’t know how to get started, we’d be honored to walk alongside you—offering counsel that prioritizes clarity, practicality, and the long-term health of your organization.