Learning from Walt Disney

By Alex Stewart, CPO Advisory Council

On December 15, 1966, Walt Disney took his last breath in a hospital bed in Burbank, CA, right across the street from the animation studio he founded and grew into one of the biggest entertainment empires the United States has ever seen. As much of a visionary genius and business mogul as Walt Disney was, he failed in one key area: He never created a succession plan.

As such, The Walt Disney Company fell into what entertainment industry historians call “The Disney Dark Ages.” The studios couldn’t find a hit film to save their lives, the theme parks began to stagnate in regard to innovation, and all the plans Walt had for the building of city prototypes and disrupting urban development utterly disintegrated. It would take the company almost 20 years to recover from the Dark Ages. All of this chaos was the result of a lack of planning for the future.

Looking at Walt Disney’s example challenges us as leaders within our companies to reflect on our own succession plans within our company. Some of us may have a clear vision of what that transition looks like, and some may have next to nothing in regard to ideas. For those who have a plan, congratulations! And for those who don’t, well, this article is for you. We’re going to explore a few of the most important first steps you’ll want to take when it comes to planning for that eventual succession inside your company. 

A Plan Years in the Making

Too often we find ourselves behind the 8-ball when it comes to planning for the future. We get distracted by the all-consuming daily activities or find ourselves in denial that there will eventually be an end to this song we’ve been playing for so many years. But as hard as it may be to carve out time or to face the music, looking toward the future is something that is vital for the survival of our businesses long after we’re gone.

We need to be proactive in the planning of our legacies years before that time comes. In fact, some experts recommend that we have our plan in place at least 5-10 years in advance of retirement, 2-3 years being more of a rushed timeline. But what do we do in that time before retirement? Well, let’s explore some of those “big picture” items that you’ll want to be ready for.

Find the Right People

Finding a worthy successor can be a monumental task. The truth is, no one can run your business the way you do. But instead of getting bummed out by this information, instead acknowledge this truth and begin finding the best person to run the show, even though they aren’t you. This takes skills that can’t be taught in books, but some great things to look for are:

• Alignment: Does this person share your dreams for the direction you’re currently leading your company?
• Creative Vision: Do they have the capability to look even further down the road of success and see above and beyond your own ideas of what success looks like?
• Leadership: Can this person motivate and inspire your employees to be their best?
• Integrity: Can this person be trusted to protect your brand and reputation, even a company that may have your name in the title?

Who is this person? Well, thankfully it’s your job to find the right candidate, not mine! It can be very, very difficult to find someone who fits all of these qualifications. Which is another reason why starting years, not months, before the succession is critical.

Some prefer this role go to a family member. Some prefer to look inside their own company ranks, and some scour the internet looking for the person with the right qualifications. In the end, what it comes down to is finding that person who is truly qualified to fill the role and carry your torch.

Mentorship Is Key

Another reason why you want to plan your succession far in advance is because it takes time to mentor your successor. Just like you can’t expect a stalk of wheat to appear the day after the seed is planted, it’s unreasonable to think a successor can be ready for the role within a few weeks. Sure, the right person can fill in the blanks and learn while on the job, but that time taken to learn is time taken away from your business being grown.

Take the months or years needed to truly teach your successor everything you know, not only about how your business operates, but most importantly, how to be a good leader and a good person. This effort will pay dividends in the success of your business.

Create a Clear-Cut Company Culture Game Plan

Creating good company culture is good, but clearly outlining how you create that culture on a day-to-day basis is better when it comes to succession. It’s no surprise that great leaders create great culture naturally. But as we probably all know, those who are intrinsically great at something oftentimes struggle to clarify how they are doing those great things since it comes to them as naturally as breathing.

Plan for Your Future Role

Once you have your successor in place and ready to take the position, what do you have planned for yourself? What will your new role in the company look like? Will you stay on as president of the board? Remain a board member? Transition into an advisory role? For how long? At what capacity? Or will you simply be lounging on a beach chair somewhere in the Caribbean with your cell phone silenced?

These are the questions you need to have answered long in advance. These are also things that need to be discussed in many candid conversations with your successor. Be on the same page with your successor and your entire company so none of these moves come as a surprise or a shock. Planning your future role now (with your successor as a meaningful collaborator in that process) will prevent any mess or fuss when the time comes for someone to step into your role.

Finally, Learn from Others' Succession Successes and Failures

Experience is a great teacher, but others’ experiences are the best teacher. Read stories of other business owners’ succession experiences or listen to business-related podcasts that focus on this act of succession. Implement what they did to be successful in the process and avoid the things that harmed them in the process.

In the end, it is best to become a devoted student of the succession process now, so your business can thrive in the future.