Good plans do not always go as planned.

Sean sat in his doctor’s office in shock, absorbing the news as his mind raced. “At your age, the Parkinson’s progression could be rapid. We must plan our next steps…” The physician’s voice faded as Sean felt a rush of denial, anger, and frustration.

An action-oriented individual, he recovered quickly and told his visibly upset wife, Claire, not to share this news until he had made arrangements for the highly successful family enterprise he had built. Claire was not amused by this suggestion. Grief-stricken, she needed family support. “You do realize we can’t possibly keep this a secret,” she snapped.

Despite Sean’s diligent estate planning to protect the future of their successful family business and ensure its eventual transition to the couple’s five children, one major gap remained: what would happen if Sean became unable to lead? He had intended to work another decade until one of their children was ready to take over. Now, Sean and Claire faced the difficult reality of having no one to step in and run the business. Panic set in as they confronted managing Sean’s medical challenges while finding someone to run things day-to-day until a long-term successor could be found.

When Life Doesn’t Follow the Script

Family enterprises often plan for transitions they can control, like estate planning, wealth transfer, and leadership succession. However, even the best-laid plans can fail because life and business events occur in unanticipated ways or at unexpected times. 

This article examines examples of unplanned scenarios and outlines tools to help manage disruptions and unforeseen transitions, thereby safeguarding family and business continuity.

Unexpected Turns Can Challenge Any Family Business

In the quaint town of Holland, a somber atmosphere descended upon the community following the unexpected death of Matt, the young family CFO of Quality Beverages. Matt was only 37 when he passed away from cardiac arrest. The family was torn between finding space to mourn quietly and the immediate need to consult various advisors for estate planning.

And in a large West Coast city, Lanie explored rehabilitation options to comply with a court-ordered inpatient treatment. For years, her undiagnosed bipolar disorder had led to substance abuse and numerous legal issues. Although she had a good chance of developing a long-term treatment plan to manage her bipolar disorder, she needed to be absent from her full-time job as president of her family’s aerospace manufacturing company to focus on her mental health. Lanie was an accomplished third-generation family leader and the likely successor to her uncle, the CEO.

As news spread, the family and board of directors quickly realized the need to develop a plan to manage the gossip and misinformation circulating among employees, customers, and shareholders. As the impact of Lanie’s health challenges became more apparent, the family also had to consider how to support a beloved family member in crisis, while the business needed to prepare an alternative leadership succession plan in case Lanie could not fulfill all expectations.

The Complexity of Crisis: It’s Never Just One Thing

Crises in family businesses rarely unfold in isolation. They tend to be complex, layered, and emotionally charged. The earlier story of Sean and Claire illustrates how one health disruption can cascade into every corner of a family enterprise. Their experience shows that crisis management often means juggling multiple dimensions, each with its own set of challenges.

Managing the Narrative

  • Claire and Sean wrestled with how to break the news to their five children. Each was at a different stage of life, and they feared overwhelming them too soon, but also knew secrecy would be unsustainable.
  • Sean debated whether to inform his executive leadership team. On one hand, transparency could help the business prepare for change; on the other, he worried about shaking the confidence of key clients, employees, and partners. Without a succession plan in place, even a carefully worded announcement felt risky.

Managing the Illness

  • Claire took the lead in coordinating Sean’s care, juggling appointments with physicians, specialists, nurses, dieticians, and physical therapists.
  • Their eldest daughter joined Claire in providing hands-on support with managing meals, medications, and Sean’s daily routine. Like many family caregivers, they assumed the role out of love and necessity, unaware of how emotionally and physically taxing it would become. Seeking outside caregiving help can offer critical relief, allowing families to be more present in the time they have together.
  • The family also faced difficult financial questions, from medical costs to the long-term viability of the business without Sean at the helm.

Managing Grief

  • For Sean, perhaps the only thought more painful than death was the idea of losing his sharp, decisive mind. He grieved the loss of his identity as a capable leader and feared becoming dependent on others.
  •  Claire found herself navigating what psychologists call anticipatory grief. She cycled through anger, sadness, and helplessness, not only mourning what lay ahead but also feeling the weight of decisions being made too soon.
  • This kind of systemic grief touches every member of the family in different ways. When illness strikes, it doesn’t just affect one person; it affects everyone. It reshapes expectations, responsibilities, and relationships across generations.

Approaching the Crisis  

We interviewed several family business leaders and FBCG advisors to gather strategies for effectively managing disruptions caused by events such as illness, death, or extended absences. “We prepare for these situations by conducting a dress rehearsal with role-play every year,” shared one family council chair. “Think of it like a fire drill. Everyone knows what to do and where to go in specific scenarios, such as the passing of the family matriarch or patriarch.”

Be Proactive

The best time to plan is when you don’t need to. Being ready entails planning for contingencies with continuous and consistent communication done with transparency and respect for the family system. Several tools can help manage these challenging and uncomfortable communications effectively, such as:

  • Scenario planning: Facilitated conversations that simulate unexpected events can help the family evaluate or develop documents and policies.
  •  Regular family meetings: Create comfort with tough topics through consistent, open conversations.
  • Education for all generations: Share and review key documents like governance policies as a group.
  • Healthcare infrastructure: Include insurance options for family members who are not active in the business but may need support in the future.

Be Present and Supportive

The gift of time is often underrated. A person undergoing such crises seeks emotional, physical, and mental support that can be extended by being present and attentive.

  •  Support doesn’t have to mean having answers. It can be as simple as showing up, listening, and staying connected.
  • People who can no longer serve in a traditional role may still have valuable contributions to make. Help them find meaningful ways to stay involved.
  • Everyone grieves differently. Some may prefer privacy while others are more open. Respect both approaches.

Manage the Narrative

Like the Roy family from HBO’s Succession, controlling the narrative is everything for a high-visibility family. The first message is critical because it needs to originate from the family before newspapers, social media, and TV tell the story.

  • Planning consistent messaging: Families need to draft a message, align on its content, and understand what they are communicating.
  • If the person experiencing the decline has enough capacity, it is especially beneficial if the family can work with them to shape communications.
  • Tailor the message to suit the audience, such as family members, team members, partners, or the general public.
  • Timing and delivery matter. Think through the sequence of who hears what, when, and from whom.

Deal Directly with the Diagnosis

For the person receiving a diagnosis, the impact goes far beyond medical facts. It is not just about the disease itself, but what that diagnosis represents to them. Understanding how your loved one makes sense of this moment in their life is essential.

  • Face the facts together by encouraging open and honest conversations about the diagnosis. Denial can stall progress and create distance when connection is most needed. In-person family meetings can help align everyone on the reality of the illness, available treatments, and possible outcomes.
  • If the illness may lead to cognitive decline, start preparing early. Consider how responsibilities may shift and what systems need to be in place to ensure continuity and clarity.
  • Families can work with trusted advisors to create checks and balances in their governance. This helps prevent decisions from being made in emotionally charged moments and ensures choices are grounded in shared understanding.

Assemble the Right Team

As the saying goes, “It takes a village.” Families benefit from assembling a team of experts and thoughtful advisors, as shown in the diagram below.

It’s important to facilitate dialogue among the team to make sure everyone is aligned in providing the best care and counsel while maintaining privacy. Your trusted advisors may help in creating or collecting the following important documents:

  • Durable power of attorney for business
  • Medical power of attorney for medical decisions
  • Will and estate planning documents
  • Shareholder agreements or operating agreements: Based on illness, addiction, or mental health, these documents can include a clause that addresses if someone is incapacitated mentally, e.g. not having adequate space, time, and place orientation when they no longer have the cognitive abilities to make informed decisions.
  • The charter for your board of directors would benefit from a clause about removal due to mental incapacity from positions.

Normalize the Pause

The truth about life is that it never stops. No matter how shocked or upset one becomes by a tragedy, societal norms often encourage carrying on.

Francesca was stunned by the sudden passing of her daughter, no one knew when or if she would recover from this terrible loss. But she did survive this tragedy, and in her own words, what helped her most was the space to breathe and grieve. That’s why it’s imperative that we “normalize” the pause.  

It is always a good idea to pause and check if all stakeholders are ready to engage in a business discussion. Rushing into tasks like estate or will handling can be done in due time. Take time to grieve, mourn the loss, and then prepare yourself.

To everything there is a season. Sometimes you pause, and sometimes you need to do the work. All the tasks around wealth, estate, and wills may seem futile, but ultimately, necessary actions must be taken to maintain the continuity of the legacy.

When Families Choose to Face the Unexpected Together

Navigating disruptions in a family business requires thoughtful planning and foresight, enabling families to mitigate uncertainties and maintain continuity in both business and personal life.

However, beyond administrative frameworks and legal documents, disruptions can create space for profound growth, both for individuals and for families. As our FBCG colleague David Lansky shares in his article “A Founder Dies,” families can emerge with new dynamics as they begin to:

  • Understand the value of communication at a deep emotional level
  • Nurture patience in the face of urgent calls to action
  • Discover family strengths not previously realized
  • Practice proactivity

Being intentional in a crisis can create resilience and stronger bonds, both in business and within the family.