A Successful Transition

Letting go is always difficult. For family business owners in particular, the connection to their work runs especially deep. There is a very strong sense of identification—often spanning many years, perhaps even several decades, during which the “elder generation” has been active in their family business. And it is precisely this generation that often finds it extremely difficult to let go. Especially since, in most cases, there is a direct family relationship between the older, handing-over generation and the next, taking-over generation.

Same Pace

Letting go, however, is a key—and possibly the decisive—factor for the success of any generational transition. Without letting go, there can be no successful generational transition. How could a relay race—a baton handoff—work if one runner didn’t pass the baton to the next? True letting go means actively handing over. Just as in a relay race, it is also important in business succession that, at the moment of the handoff, both parties are moving quickly and at the same pace.

Personal Experiences

For the older generation, being able to run at the same pace means not stepping down too late, but also giving their successors enough leeway. In this context, it seems most practical for the next generation to develop independently of the older generation—for example, in a different company where they can and must prove themselves in a new environment without the advantage of being the son or daughter of the founder. A genuine, not an artificial, environment is crucial here. For the next generation, keeping pace means challenging themselves, setting clear goals, pushing their limits as part of this preparation, being willing to make mistakes, and gaining their own experience through them. Celebrating their own successes—regardless of whether their parents’ generation was successful—is a pleasant but equally important part of this process. For both generations, “keeping pace” means mutually acknowledging each other’s situations, recognizing that both sides face challenges, and understanding that it’s usually harder to let go than to take over.

Gradual Separation

Letting go completely does not mean that a complete separation will follow. Once the older generation has let go and the next generation is “running” on its own, the older generation should be ready to support the next generation when asked. For the successors, this is not a sign of weakness, but rather an active drawing from the well of the older generation’s experience—and, overall, an approach that is motivating and fruitful for both sides, which should further contribute to the success of the next generation.

I therefore call on the “older generation” to be ready to let go, for only in this way can the stated goal of a successful generational transition—especially in family businesses—be achieved.

But I also call on the “next generation” to make use of the older generation’s experience and to reach out to them. Just as in a relay race, it is important in business succession that, at the time of the handover, both parties are moving quickly and at the same pace.