Emergency Succession True Tales: When the Unimaginable Strikes

Here’s a tale of emergency succession: It’s mid-January. Drivers are working double shifts, and tanks are being filled around the clock. Then, the phone rings. It’s the owner’s wife — he didn’t get up this morning. 

Within hours, the phones illuminate with queries: 

• Who can authorize deliveries?
• Who can get to the bank accounts?
• Who’s signing payroll?
• Who oversees the business? 

No one knows. The bookkeeper isn’t authorized to sign checks. The general manager lacks the authority to make necessary strategic decisions. The leadership stands paralyzed because no one had ever told them what to do in a situation like this. 

Does this sound dramatic? It’s not. Similar stories occur often in the propane industry, exposing what was never planned for. In a business as hands-on and service-driven as propane, the effect is immediate. Customers panic, creditors call, employees lose confidence and families mourn as they navigate decisions they never expected. 

This isn’t a story of loss, but one about what you can control. When the unthinkable occurs, the distinction between a company that survives and one that crumbles is often a matter of proactive strategy and scenario planning. 

The Domino Effect: What’s Next? 

When an owner or key leader is suddenly gone, it’s not just their responsibilities that falter. They are the center of the wheel. 

Remove that hub, and everything attached to it begins to wobble: 

• Leadership continuity: Who’s calling the shots?
• Team synergy: How well does the team come together or fall apart?
• Family governance: Can the family act as one?
• Strategic direction: Was there a strategy or instincts in one person’s mind?
• Business performance: Will the company be able to generate cash flow and maintain its reputation through uncertain times? 

All propane companies operate within these interdependent areas. When one part of the chain weakens and breaks, it’s going to start pulling on all the others. In the middle of heating season, there’s no grace period to figure it out. That’s why succession planning is not only about estate documents. It’s strategic risk management. It’s what distinguishes the companies that can weather a storm from the ones still selling at a loss — or leaving behind a legacy of regret. 

Let’s examine three real-world scenarios and learn from the mistakes so you can avoid these painful outcomes. 

Scenario 1: Collapse in the Heating Season 

It was January, the peak of the heating season, when the owner of a local propane company died unexpectedly. 

The business served nearly 8,000 customers across three counties and employed 45 people whose livelihoods depended on the owner’s leadership and the company’s stability. For decades, the owner’s accountant and lawyer had assured him everything was in order. The estate plan was signed, insurance was funded and the trust was up to date. What no one knew was that the papers had protected the family’s wealth but not the company’s ability to operate on Thursday morning. 

There was no operating agreement, no emergency signatories and no leadership bridge. 

After the owner passed away, the bank froze all the accounts because he was the only authorized signer. Vendors stopped shipping. Payroll halted. And while the certified public accountant (CPA) and attorney were quick to assist, neither had the authority or skills needed to operate the business or quiet customer fears. 

The owner’s wife, still reeling from the news, suddenly found herself signing off on a slew of purchases and explaining to staff why checks weren’t being honored. The general manager attempted to rally the troops, but with no authority or fallback plan in place, what had been a thriving business lost clients, cash flow and credibility within weeks. 

By February, routes were disrupted, accounts were lost and competitors were circling because planning stopped where the tax strategy ended. 

What This Business Didn’t Do, But You Still Can 

• Establish strong financial and legal continuity:
  • Include cosignatories to all accounts and signing authorities.
  • Draft an operating agreement specifying who can make decisions in an emergency.
  • Keep important papers up to date and within reach.

• Design a clear pathway for leadership continuity:  
  • Determine who leads in the first 30 days, six months and beyond.
  • Identify and develop interim operators and long-term successors now.

• Align your advisory team for the big picture:
  • Ensure your CPA, attorney and succession planner collaborate.
  • Estate and tax planning protect assets, but a succession planner brings it all together — aligning business management, family dynamics, leadership development and strategic direction so the company performs through transition, not just survives it.

• Prepare family and key leaders:
  • Bring transparency to structure, finances and decision-making to reduce confusion, prevent conflict and protect relationships during transition.

• Review and update annually:
  • Update with significant changes, such as growth, leadership transitions or new regulations.
  • Conduct scenario-planning sessions that anticipate emerging issues before they reach the crisis stage.

Scenario 2: The Family Feud Fallout 

A second-generation propane company was thriving with good margins and a loyal customer base. The founder, who was 79, had semiretired and left both children to run the business. 

One sibling was responsible for operations, overseeing 20 drivers and daily logistics. The other managed sales and administration. Each thought they were the key driver to their success. 

For years, simmering tension played out as competing leadership styles and a turf battle frustrated top managers caught in the middle. The founder saw the conflict but avoided it, hoping time and success would smooth things over. They didn’t. 

When the founder passed away, the siblings became co-owners; a governance structure was set to determine authority, profit distribution or dispute resolution. Every disagreement turned personal. 

The operations sibling often said, “I’m the one who’s keeping this place running.” The other countered, “You may do deliveries, but I’m the one who’s keeping customers and cash flow.” 

The service manager walked out after some heated exchanges. Consequently, one of the lead drivers followed him to another employer. Losing them hit hard; they knew the customers and kept things moving. When they departed, everything felt difficult. Deliveries were delayed, calls fell through the cracks and customers began walking away. 

At home, it was no better. The siblings’ mom attempted to keep the peace, but family dinners were filled with silence. The siblings hardly spoke. 

Two years later, the company that had been a local success story was on the verge of collapse. Sales were sinking, crucial people had departed and legal threats hung in the air. So, the siblings made a final decision together: sell before it all collapsed. 

The sale to a regional consolidator wasn’t supposed to happen; it was a matter of survival. 

How to Hold a Family’s Leadership Together 

If you already sense there’s resentment in the family or a feeling — “I don’t know if they’re all going to work well when we’re gone” — don’t leave it up to them. There is too much risk for your business, your employees and your family relationships. Address the issue now while you’re able to steer the process. 

• Establish governance early:
  • Formalize decision-making, voting rights and dispute resolution.
  • Governance allows siblings to establish expectations and transform resentment into accountability and mutual respect.

• Clarify roles, key responsibilities and accountability:
  • Define who’s leading, who’s supporting and how decisions are made. Clear roles prevent overlap, confusion and resentment while building trust and teamwork among family members.

• Protect and empower key leaders:
  • Family members outside the family tree are often the glue that holds the business together — but only if they feel supported.
  • Define authority and provide leadership training for family and nonfamily managers.

• Create a communication forum:
  • Organize structured meetings to talk about priorities and challenges before conflict takes hold.
  • Create a supportive environment where siblings can learn to be partners, not competitors.
  • Utilize a third party (someone neutral) to manage productive and focused discussions.

• Engage in strategic planning:
  • Strategic planning serves as a platform through which siblings can come together around long-term vision and goals.
  • With an outside facilitator, they can reach mutual decisions rather than depend on a “dad” to take sides. 

Scenario 3: The Market ‘No One Planned For’ 

For over 60 years, a family-owned propane company was the go-to provider in its region. The current president, a third-generation owner in her mid-50s, had worked her way up through the business. Ten years earlier, when she stepped into a leadership role, she helped double the company’s size and modernize its systems. 

But despite her success, significant decisions were still made by her father, who continued to work as chairman. There was a strong, visionary management team, but major strategic decisions had to wait until the chairman returned from vacation or hobbies. 

The president lobbied to adapt to new carbon rules and emerging technology trends. Her managers provided data and ideas, but approval from her father was required for every major investment. His semiretired life and skepticism of modern technology frequently delayed progress. 

Suddenly, the president’s father had a stroke. While he did bounce back, he was forced to focus on his recovery, which distanced him from the business for nine months. While he was recovering, his daughter discovered how little real power she had. Everything from contracts to supplier agreements and even financing was subject to dual approval. Managers felt the strain of unclear direction and the inability to address critical strategic issues. 

Frustration grew. Some top managers, unsure how things would play out, decided to leave, taking good employees and long-time customers with them. The loss of stability quickly affected performance, service and morale. 

The president was paralyzed — expected to lead but not given the power to act. Her relationship with her father became strained as she pushed for control while he resisted letting go. 

When her father returned, the damage was evident. Key accounts had left, morale was low and momentum had halted. They weren’t brought down by regulation or competition but by uncertain authority and lack of planning for the transfer of control. 

Building Depth of Leadership Before It’s Too Late 

• Create a culture of shared leadership:
  • Involve managers in strategic planning and key decisions.
  • Encourage collaboration and cross-department problem-solving.
  • Shared leadership strengthens adaptability and performance under pressure.

• Develop and test leadership readiness:
  • Invest in development and coaching for current and emerging leaders.
  • Delegate real responsibility and step back to see how the team performs without you.
  • Testing readiness builds confidence and exposes gaps before a crisis.

• Plan for generational transitions early:
  • Outline the timing and structure for transferring leadership and decision-making.
  • Include all active family members so expectations are clear.
  • Early planning prevents confusion and resentment.

• Clarify authority and decision-making:
  • Define who has authority for strategic, financial and operational decisions now and in the future.
  • Document approvals so decisions don’t depend on one or two people.
  • Clear authority keeps the business moving when leadership shifts.

• Formalize a leadership succession plan:
  • Work with a succession planning advisor to align ownership, management and governance.
  • Define key roles, responsibilities and backup authority for critical positions.
  • A formal plan connects people, authority and systems for smooth transitions. 

The Planning Advantage: The What-If Factor 

Succession planning isn’t about predicting everything that can go wrong. It’s about finding what you cannot afford to be wrong about. 

• Identify your critical dependencies — what would happen if they were absent, and what would idle operations look like tomorrow?
• Map the “what-ifs” — sickness, death, regulation or even a key employee walking out.
• Test your reply — who comes in, and what’s the chain of communication? 

When owners complete this exercise, fear becomes a form of control. They identify areas they have never seen before, bolstering leadership and building confidence that their teams can perform under pressure.