The Risky Business of Succession - From Disney to Paul Weiss

 Succession is tricky business for any business. It becomes all the more risk-laden in these volatile times when most of the supposed experts are proving quite useless in projecting what is ahead. We read their pontifications in Bloomberg, then smirk not long after when something very different plays out.

Well, at Disney in February 2020, Bob Chapek took over the corporation. It was at one of those worst of times for that maker of happiness. The impacts of the COVID lockdowns were devastating for the theme parks and more. Also he was following the long-term charismatic leadership of Bob Iger. Pile on also ESG problems and bad public relations stumbles.

Some did not expect Chapek's contract to be renewed. Some Disney fans hoped that Iger would parachute back.

Well, the contract has been renewed. Chapek is thriving. So is the corporation.

In the process - and this is the lesson I showcase to struggling professionals in my intuitive career coaching business - Chapek had the confidence and the vision to go bold. That lifted him out of the shadow of Iger. Obviously he had not only grown into the role but reshaped it into his own image.

His moves have not only been strategic. They are symbolic. For example, there has been his raising of the price of the streaming service. It was in direct conflict with Iger's thinking. Disney watchers watched for more.

Financial performance improved significantly.

And, now, as Deadline gushes, Chapek is betting part of the future on the metaverse. That's the interactive extension of the internet. For Disney platforms such as Disney+ Chapek plans to make them two-way mediums. They will provide not only content but open themselves up to having members create lifestyle experiences. 

Simultaneously, there is another piece to the business of succession. That’s Iger’s legacy and his present. He will now have to focus on being relevant. Much of the memory of this earlier leadership is being erased by the strategies of his successor.

Those who study the complex succession process might also be conjuring up scenarios for elite law firm Paul Weiss. That transition will kick in if the current chairperson Brad Karp decides to retire from the law-firm leadership when his contract expires in May 2023. 

Karp has served in that role since 2008. That means he got the law firm through The Great Recession. At the time there were no layoffs at Paul Weiss. In contrast, in 2009, about 6,000 lawyers at other law firms found themselves on the street.

Then Karp got the firm through COVID, with more than $6 million Profits Per Equity Partner for 2021.

Now there is the normalizing of demand after the pandemic boom. 

Along the way, Karp transformed Paul Weiss from a Wall Street litigation powerhouse to one which also had transformational practices, packed with star players poached as laterals.

He extended the traditional role of a law firm to being on the front lines of social justice.

Plus, he is quite the rainmaker. Each year he bring in about 20 new accounts.

As a result, he has become the public face of Paul Weiss. That is, the brand. 

So what kind of professional could succeed Karp? Also, since he's 63 years old, a boomer, will the next chairperson be from a younger generation? Should a power quake be anticipated?

No matter how carefully and wisely that succession decision is made, there is no guarantee it will pan out. It could be a disaster for Paul Weiss. In addition, of course, there is the issue: Since it is unlikely Karp will retire from working full-time, will his next job or contract assignment pan out for him? In addition, how will his legacy for law-firm leadership evolve over time?

For individual careers, the succession ordeal businesses go through is analogous to career change. It is complex. It is risky. And there are no guarantees of success. More and more of my coaching clients want to shift from employee to entrepreneur. We usually have lots to sort out together about that one.

Your just-right professional fit. You can bypass the usual pain points. You may need to change jobs, careers, or from being a worker to entrepreneurship. So many are at a crossroads. Complimentary consultation for coaching, job-search materials, and interviewing. The menu of services includes Tarot readings, both spreads and one-card pulls. Please contact janegenova374@gmail.com or text 203-468-8579.