Every practice needs a clear succession plan in order to flourish once its founders are no longer at the helm. Jonathan Morrison talks to RSHP, Henning Larsen, Arup, and Grimshaw about making the process effective and pain free.
The news that Richard Rogers had passed away, in December last year, brought a moment of great sadness. It also focused the mind. I’d been working on a report in to the problems of succession planning in architecture with ING Media for some months before Lord Rogers’ death, and one of the natural places to start the research was at Rogers, Stirk, Harbour & Partners (rebranded as RSHP in June) who had already put a lot of thought into this – not least because Rogers was determined that the firm he founded, and the charity it supports, would continue after his retirement and death. Whilst it was hardly a one-man band, it faced many problems that are typical of the profession, particularly if practices are associated with a ‘big beast’ whose name, and perhaps trademark style, draws clients in the first place. The directors of RSHP were extraordinarily candid; if some wondered where they would go after their founder’s demise, the fact is: they already knew.
Communication is a crucial part of any succession strategy. Gimshaw prioritises making time for conversations with staff and making sure all employees are clear about the direction of travel and excited about the future.
It’s not an easy topic to contemplate: like mortality itself, the idea of moving on or retiring is unpalatable. Hanging up the pen and handing over the CAD does not come naturally to someone who has founded and grown a business. But time waits for no man or woman, and it’s important to think ahead and devise a succession strategy if the firm you have put so much energy into is to flourish rather than wilt. And you owe it to your employees, from senior partners to the most junior, to give them confidence and hope for the future, to reward them for their loyalty. If succession planning had been lurking at the bottom of the to-do list, I suspect the shock of Rogers’ passing will have resulted in that changing at more than one practice.
The good news is that succession planning is not intractable. From interviewing senior figures at the likes of NBBJ, Arup, Grimshaw, Henning Larsen and, of course, RSHP, a few consistent strands have emerged. Putting it simply, there are five points you might consider starting with:
1. Planning
It may sound obvious, but preparing as in advance as possible and giving the planning process the time and resources it needs is key. It may seem uncomfortable at first, not least because if you are the founder, you need to decide how and when you want to leave. It’s best if you then don’t come back – sorry!
Graham Stirk describes what happened at RSHP: “Richard had already pinpointed a date when he planned to retire so it wasn’t a sudden shift – there was a period of working together and it gave people time to accept that there was going to be a change. Richard left in 2020, as he’d always planned to – if he’d suddenly gone in 2007, we’d have struggled.”
So because of that, it was seen as a natural evolution. People were very aware of what was happening. We didn’t have resignations! My advice would be that it’s best to do your succession planning earlier on. The period you have available is very, very brief.”
2. Identify your successors
No one’s irreplaceable, but finding a replacement is certainly going to be difficult. Who can take the company forward? How can you help them grow into a leadership role? What training might they need?
John McElgunn, another partner at RSHP, puts it thus: “Graham Stirk and Ivan Harbour were recognised [as leaders] when young, but now we have to identify the next generation of leaders and educate them to run a business.
“Some people naturally select themselves – they have a thirst and ability to look outside the immediate task, a capacity for breadth. But we also need to find those who don’t naturally select themselves but who can be helped and encouraged.”
3. Get the right advice
Don’t know the tax implications of an Employee Ownership Trust off by heart? Ask someone who does. Canvass widely. Use your contacts: legal, financial, HR, PR. They will all have suggestions. Some might share a few examples where it went badly wrong, too.
As Mette Kynne Frandsen, the CEO and partner of Henning Larsen – who actually did her MBA on succession planning – says: “In a global world you need more strategic business thinking… finding the right ownership model has allowed us to keep our culture, strengthen what we’re good at and also grow.”
4. Identify problems
What will stop you? What are the opportunities and what are the dangers? Look for different perspectives and tackle any issues head-on. They might not be what you expected, but you can expect finances to be involved.
Tristram Carfrae, deputy chair of Arup, has this to say: “Set down what’s happening. Try not to idealise it. If you’re not successful going forward, it might be the business environment, but, more often than not, it’s the wrong leaders.
“The most divisive thing is money and the last thing you need is to have the ongoing company burdened with along-term drain of money.”
5. Communicate
Once you’ve decided what the strategy is, make sure all your employees (and clients) know. Get your people excited about the future. It may seem obvious, but this is the key to retaining talent!
Kirsten Lees, managing partner of Grimshaw’s London studio explains: “If I can offer some advice, it’s this: be willing to make time for conversations. Trust each other. Assume positive intent. Make sure you give everyone an opportunity to come together. That’s the way to prepare for future challenges.”
Of course, there’s lots more to it, but, as with all things strategic, a little forethought pays big dividends in the long run. And who knows? You may end up creating not only an enduring business, but something better – an enduring legacy. That’s what Richard Rogers and RSHP have achieved.
Succession in Practice will be published in early October. For more information on the report and launch event visit ing-media.com
