Last month’s attempt by media baron Rupert Murdoch to keep BSkyB in the family, showed just how tricky the whole issue of succession can be.

The appointment of his son James as chief executive of the company, appeared to make a mockery of the whole principle of there being a degree of independence between a firm’s chairman and his CEO.

As he usually does, Big Rupe got his way in the end. However, the whole messy process has created a great deal of ill feeling within the company and among its shareholders, and serves to illustrate just how easy it is for your decision to step down to turn into the hand-over from hell.

One company, which has managed to avoid the headaches normally associated with succession, is NWF Group Plc. The £169m turnover Cheshire-based firm, which comprises four separately managed divisions: distributions; retail; fuel and animal feed, recently announced the retirement of Graham Scott as chief executive. Mike Guest, director of the company’s distribution division is set to take over the reins.

Even though Scott isn’t due to step down until this time next year, NWF began the process of finding his successor months ago, proving the often made point, that it’s never too early to begin thinking about the issue.

“If you’re looking to get in someone who is really top drawer then you’re going to have to get the ball rolling well in advance,” says Scott.

“If you bring in someone externally, they’re more than likely going to be on a year’s contract, of which they would have to honour at least six months of that, so to ensure you get the best possible person you have to factor in this sort of time scale.”

The position of chief executive was advertised internally first, with a clear job spec being written out and distributed. “No one was tapped on the shoulder and told quietly not to apply,” adds Scott. As it turned out three of the four heads of the company’s divisions threw their hats in to the ring and, with help from the company’s advisors Charles Stanley, NWF’s non-executive directors decided they had found their man.

So while the amount of time factored in ultimately proved unnecessary, at least it provided NWF with more flexibility. “If we had even the slightest bit of doubt about the appointment, we would have extended the search externally,” says Scott.

But as an AIM listed group with 1,350 shareholders, NWF also had to convince them They had made the right decision. Last August the company announced record pre-tax profits of £5.05m, so it was important Scott’s retirement would not be seen as a sign all this good work could be about to end. It was also vital to ensure, with development projects in the pipeline, potential investors knew just who they’d be backing.

“We’re an old fashioned company, we do boring stuff, but we do it both consistently and well. It requires huge courage to preserve that and keep the continuity of success going. Mike will inevitably have a different way of doing things to me, but he has been party to all our strategic development plans so it will be more evolution rather than revolution,” says Scott.

As his retirement draws near, Scott will spend the next year grooming Mike into his new role, while the soon-to-be chief executive will in turn have to put his mind to finding someone to head up the distribution division.

Meanwhile Scott can now look forward to December 2004 knowing he will be able put his feet up over the festive period, safe in the knowledge that the firm is in good hands.