Why should CEO posts be passed on like heirlooms?

John Ward has been studying family controlled businesses for more than 30 years. The professor at Northwestern University's Kellogg School of Management knows plenty of patriarchs who talk of eventually turning over control to their children. But, he says, "such handoffs happen smoothly only about one-third or one-quarter of the time."

The management turmoil at News Corp. is the latest case in point. The media company's chief executive officer, 74-year-old Rupert Murdoch, had been grooming his oldest son, Lachlan, 33, for a shot at the top job. On Friday, however, Lachlan Murdoch said he was quitting the company to pursue his own career in Australia. Immediately, analysts speculated that Rupert Murdoch would now shift his attention to younger son, James, 32, who runs the News Corp.-affiliated British Sky Broadcasting Group PLC satellite-television service.

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Also see: Murdoch son 'quit over family rift' & Murdoch Son Leaves News Corp., Tossing Succession Into Question