Family Business Succession: The Wallenberg Model

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FAMILY BUSINESS,SUCCESSION PLANNING,WALLENBERG FAMILY

The article examines the challenges of succession planning in family businesses, drawing on the example of the prominent Wallenberg family in Sweden. It highlights the rarity of open discussions about succession, emphasizing the Wallenbergs' unique approach of transparency and collaborative governance.

An old adage states that family businesses often go from “shirtsleeves to shirtsleeves in three generations”. The buccaneering entrepreneurs of the first generation make the money, the second generation enjoy it, and the third squander it. It is a tale of woe every successful business person wants to avoid. But as current succession dramas like the current frictions in the family of Rupert Murdoch demonstrate, it can be highly tricky to pull off, especially in the public gaze.

Many had secured observer roles on foundation or corporate boards, and for the first time in the family’s history, women were likely to play a leadership role. Several aspects were striking. The Wallenbergs have formally split their activities into three buckets — business, foundations and family — and members of the next generation will be able to choose which one, if any, best suits their interests.

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