The fact that formal succession plans are not prepared does not necessarily
mean that there is an absence of planning. It may be that “plans” exist but are
more open, fluid and unstructured. Further, they may be subject to ongoing
adaptation and change based on family and business dynamics. Formalization
may be thought to undermine family relationships or undercut motivation. In
addition, the nuances of such plans may have resided more in the mind of the
predecessors, with many details never shared with the successors or other
involved parties.