The American Society of Interior Designers (ASID) has released a new research report aimed at helping interior design firm owners plan for the future: Designing A Succession Plan: Insights for Firm Owners. The report highlights the critical role of succession planning in ensuring business continuity, maintaining firm culture, and sustaining a competitive edge. It provides strategic guidance for ownership transitions, helping firm leaders secure their legacies and prepare the next generation for long-term success.
“Succession planning is not just about leadership transition—it’s about safeguarding a firm’s legacy, culture, and future success,” said Khoi Vo, chief executive officer of ASID. “With this report, ASID equips firm owners with the insights and strategies needed to navigate transitions with confidence. Whether passing the torch to internal staff, selling the business, or preparing for new leadership, proactive planning is essential to maintaining stability, preserving client relationships, and strengthening the next generation of design leaders.”
Key Findings and Challenges
The report, developed in partnership with Greenway Group, a consulting firm with over 30 years of experience advising design businesses, identifies two major factors shaping succession planning:
- The emotional challenges firm owners face when considering transition.
- The complexity of succession planning, particularly in small and mid-sized firms.
A study conducted by Greenway Group of 63 architecture and interior design firms with fewer than 40 employees revealed significant gaps in succession planning:
- Only 30% of mid-sized firms (25-40 employees) have a succession plan.
- Just 12% of small firms (2-10 employees) have a plan in place.
- Fewer than 5% of sole practitioners have taken steps to plan for succession.
Generational shifts further complicate transitions, as younger professionals increasingly prioritize work-life balance and specialized expertise over traditional leadership roles. This trend has created a leadership gap, with fewer candidates pursuing firm ownership or senior management positions.
Tailored Strategies for Firm Owners
The report explores various exit strategies for retiring design firm owners, including mergers, asset sales, and internal transitions. It also outlines six critical transitions that should take place over time to ensure a seamless handover of leadership:
- Mission and values – Successors must align with the firm’s vision and ethos.
- Knowledge transfer – Future leaders should develop business acumen before assuming ownership.
- Strategic relationships – Client and industry relationships must shift to new leadership.
- Decision-making authority – Gradual delegation ensures a smooth transition of power.
- Business management – Successors must move from project work to firm-wide leadership.
- Owner’s transition – A financial exit strategy is essential for a successful transfer of ownership.
The report is available to both ASID members and nonmembers. For more information or to access Designing A Succession Plan: Insights for Firm Owners, visit www.asid.org.
