Transformation in family businesses across generations: A culture of leadership crucial for victory
In the heart of Europe, approximately 30,000 family-owned businesses in Germany face a succession issue each year. Yet, amidst the challenges, there's a silver lining; around 10,000 of these businesses undergo a generational transition annually. The process of this shift can determine whether the company emerges from the succession strengthened or weakened.
Navigating this transition is a delicate balance, as two systems often collide: the family system, characterised by loyalty, tradition, and harmony, and the business system, driven by market logic, innovation, and result orientation. This is where PLÜCOM TRAINING comes into play, offering practical trainings and coachings for leadership development and strategic consulting in the mid-market.
PLÜCOM TRAINING promotes a value-oriented leadership culture that motivates employees, strengthens teams, and delivers sustainable results. One opportunity for reshaping this culture is a shift away from patriarchal directive leadership towards participatory leadership with clear decision-making spaces.
Digitalization, sustainability, and internationalization are future fields that the successor generation often brings naturally. However, the actual success factor in a generational shift lies in the leadership culture. Successful transitions occur when these two systems are consciously separated, and their interfaces are clearly defined.
External impulses, such as interim managers with transformation experience, can act as a catalyst for renewal. A generational shift is a process that requires strategic positioning, participatory value work, and pilot projects, taking about two to three years.
The generational shift in family businesses is not just a change in the organisational chart, but a profound transformation process that decides the future viability of the company. It presents opportunities for cultural and leadership style reshaping. If the separation and definition of interfaces fail, loyalties can block entrepreneurial decisions, or economic rationality can destroy the cultural foundation of the family.
This transformation affects nearly half a million employees. PLÜCOM TRAINING's training and consulting are an effective cost-saving program, reducing turnover, lowering absenteeism, and decreasing recruitment costs with simultaneous increased productivity.
In conclusion, the generational shift in family businesses is the greatest opportunity for a comprehensive cultural renewal. By navigating this process thoughtfully and strategically, family businesses can emerge stronger, more innovative, and better equipped for the future.
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