(March 6, 2025– Washington) –– The American Society of Interior Designers (ASID) has unveiled a comprehensive new research report to support the interior design workforce and firm owners nearing retirement: “Designing A Succession Plan: Insights for Firm Owners.” The report underscores the growing importance of succession planning for interior design firm leaders, emphasizing its role in ensuring business continuity, preserving firm culture, and sustaining a competitive edge. It further examines the impact of succession planning and offers tailored strategies to help firm owners navigate ownership transitions, preserve 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, ASID. "With this report, ASID provides firm owners with the critical strategies and insights needed to navigate ownership transitions with confidence. Whether passing the torch to internal staff, selling the business, or preparing for new leadership, proactive planning is essential to ensuring stability, preserving client relationships, and strengthening the next generation of design leaders."

Succession planning is crucial for maintaining a firm’s legacy, preserving client relationships, and preparing the next generation of leadership. ASID partnered with Greenway Group, a consulting firm with over 30 years of experience advising design businesses, to present key research findings. The report identifies two key factors shaping the succession planning process: the emotional challenges owners face when considering transition and the complexity of succession. By proactively addressing these factors, firm leaders can facilitate a seamless transition of leadership, values, and business operations, ensuring their firm’s longevity and legacy. Notable findings include:

Greenway Group conducted an internal study of 63 architecture and interior design firms with fewer than 40 employees. The findings highlight significant gaps in succession planning:

• 30% of mid-sized firms (25-40 employees) have succession plans.
• 12% of small firms (2-10 employees) have succession plans.
• Less than 5% of sole practitioners have succession plans.

Shifting generational expectations present new challenges for succession planning. Younger generations increasingly prioritize work-life balance and specialized expertise over traditional career advancement paths, particularly within management and leadership positions. This shift creates a leadership gap as fewer qualified candidates seek these roles.

Small design practices face unique succession challenges due to their scale. The most significant barrier is the limited talent pool of potential successors. Small firms also struggle to dedicate resources for succession planning, such as hiring external consultants or providing training and development opportunities for future leaders.

The report also explores various exit strategies for retiring design firm owners, including mergers, asset sales, and internal ownership transitions. Additionally, it outlines six essential transitions that should take place over time to ensure a smooth and successful leadership handover.

1. Mission and values: Successors must align their values with those of the firm.
2. Knowledge transfer: Future leaders should develop business-related skills and competencies before assuming ownership roles.
3. Strategic relationships: Key client and industry relationships must transition to the successor.
4. Decision-making authority: Owners often struggle to relinquish control—gradual delegation helps ensure a smooth transition.
5. Business management: Successors must shift from project work to firm leadership responsibilities.
6. Owner’s transition: A financial exit strategy must be implemented to ensure a smooth transfer of ownership.

The report is now available for both ASID members and nonmembers. For more information, visit Designing A Succession Plan: Insights for Firm Owners.