Succession Planning According to Encanto
Dear Advisors,
If you haven’t seen the Disney movie Encanto yet, or at least heard one of the viral songs that has taken the world by storm, it’s time to reconnect with your inner child! I wish I had a quarter for every time I heard someone start singing the catchy tune, “We don’t talk about Bruno!” Well, today, we are going to talk about him, as well as the other members of the Madrigal family. (Here is your fair warning that if you haven’t seen it yet, there are spoilers in this blog post!)
In the midst of this enchanting story about complex family relationships and finding worth deep within yourself, Encanto also has a theme woven throughout of passing on a legacy to the next generation. We can definitely learn what to do (and what not to do) in a succession plan by digging deeper into the Madrigal’s story!
1) Holding on too tight can kill a Succession Plan.
In the movie Encanto, the abuela (grandmother) is the central leader. She grew the family and the entire town from sacrifice and tragedy. It is because of her that her children and grandchildren inherited different magical gifts. The family is constantly trying to please Abuela and measure up to expectations. In the lyrics of the song, “The Madrigal Family,” Abuela sings her perspective of passing on her legacy to the next generation.
“We swear to always help those around us,
And earn the miracle that somehow found us.
The town keeps growing, the world keeps turning,
But work and dedication will keep the miracle burning.
And each new generation must keep the miracle burning.”
As the story unfolds, you find out that “work and dedication” are, in fact, not enough to keep the family legacy burning. Unknowingly, Abuela’s relentless determination puts so much pressure on her family it leaves them in ruins.
Unfortunately, I have seen this pattern in Succession Planning, specifically in family run advisory firms. An advisor who just reached out to me recently is struggling because her father has initiated a sale, but refuses to complete it. He is holding on too tight, and now the advisor is looking for a job elsewhere even though it is a family business. Part of being succession ready is decide your non-negotiables and being open and flexible with the rest.
2) Talk openly about your Succession Plan.
Secrets- we think they protect us. But when it comes to passing on a legacy, communication is a key component to a successful Succession Plan! In Encanto, you find out the Madrigals aren’t the best at communicating. It’s not just Bruno, the uncle who disappeared, that they refuse to talk about. Luisa is having anxiety attack symptoms from her workload and performance pressure. Isabel is plagued with perfectionism and no longer identifies with the role she was playing in the family. Mirabel is shut down and told she is stirring up problems whenever she tries to facilitate conversation about her concerns. Abuela, the matriarch, is scared that anyone in town will find out about their troubles. She wants to keep it hush hush.
It may seem counterintuitive, but talking about your Succession Plan cultivates mutual trust! You may think talking about your exit strategy would cause anxiety for your team and clients, but I’ve seen it do just the opposite. Talking about it gives your team a sense of job security, and your clients know that they will be well taken care of when you transition out of the firm. Everyone ultimately wants you to be happy! And, if you remember the end of the movie Encanto, it is actually the town’s people (that Abuela thought would be anxious when they found out about the transitions the family was going through) that came together to support the family in their next phase of life, much like most clients will do!
3) You often need an outside guide for a Succession Plan to succeed.
Don’t underestimate the power of fresh perspective! In the case of the almost failed succession plan of the Madrigals, Mirabel acts as an unlikely guide to dig into the family’s situation and force the Madrigals to unload their burdens, frustrations, fears, and even their hidden talents. Being one of the grandchildren eager to please Abuela and contribute to the family, Mirabel is often distracted by her own emotions and worries. The drama makes for a great movie but isn’t fun in real life. It would have saved a lot of heartache if someone outside the situation served as a guide.
When it comes to Succession Planning, often the advisory firm owner and the potential successors (especially in a family business) are too close to the situation. That is why I advise hiring an Exit Planning specialist to help with the transition. I have a client who is working on an internal succession plan. I help “translate” the perspectives between seller and successor. My client was struggling with feeling like her son wasn't ready to take on the leadership role, and the son felt eager for opportunities to prove himself and learn “the ropes.” I suggested that they work on a business ownership project together to address both concerns. There can be a lot of emotions swirling around during a Succession Plan. Having a mediator to help facilitate those discussions can make or break the experience!
So, did the Madrigals’ Succession Plan succeed? At the end of Encanto, Mirabel, the unlikely successor and only family member who isn’t magically gifted, is the one who ultimately (literally) opens the door for her family into a new generation. Even though it was filled with unnecessary drama, we can assume that the Madrigal’s legacy will continue for the years to come. Maybe we will even get a movie sequel? Fingers crossed!
In the meantime, let’s learn from Encanto what to do (and NOT do) during a Succession Plan. Don’t hold on too tight, openly communicate, and find an Exit Planning specialist to help guide the process. If you are considering your exit strategy and need resources, I would love to chat about your situation. Schedule a free consultation call with me here.
Warm regards,
Brooklyn
P.S.
At Ellevate Advisors, we believe that advisors deserve to retire too. What does that look like for you, your family, and your business? Let’s figure it out together! Check out our services here, our new products page here, or get to know me on my bio here!