:quality(80))
Vanessa is 20 when she senses that her father is considering her as his successor. It happens one evening over the weekend. She had just arrived at her parents’ house two hours earlier; it had been a tough week. Every day, starting at 8:00 a.m., she had lectures, seminars, and workshops, followed by work at the library, and then at night, her remote job for a large call center. She’d actually been looking forward to a relaxing weekend, but the way her father looked at her, she knew without him saying a word that a lot was on his mind. He seemed calm, pensive; his eyes looked sad; the man who was usually so full of life was walking with slumped shoulders and a weary expression. “I’m not ready yet,” a voice inside her cried out. “Just let me finish my studies in peace—and decide whether I even want to do this. Why so soon? Is he sick and she doesn’t know about it? Can she even take on this huge responsibility? Can Dad even let go? Does she even want to take on this responsibility?” “Try it out and then let it go”—that won’t work here, will it? Many thoughts are swirling through her head. Few of them are positive. Things are different for her father. Mr. Kruge has just undergone heart surgery. Nothing life-threatening, but serious enough that he’s starting to seriously think about his successor. Who knows how much longer his heart will hold out? Is Vanessa ready for such a huge responsibility? Who else will do it? What else does Vanessa need to learn to be ready for
The Silent Power of Emotions
When companies undergo a generational transition, it is one of the most sensitive phases in their history. Studies show that around 40% of business successions fail due to interpersonal conflicts. Not because of a lack of strategy, but because of a lack of trust. Yet that is precisely the currency that makes succession possible.
Understanding Psychological Dynamics
Succession involves a complex interplay of psychological factors. On one side is the outgoing generation, which is often handing over decades of life’s work. There is concern about whether the succeeding generation can handle the transition, whether the life’s work is in good hands, but also about what comes after the handover—what meaning will one then find in life, given that the company has always been the center of attention until now. On the other hand, there is the succeeding generation, which steps in with new ideas and a different set of values, but is often still unsure whether it can—or even wants to—fill the large shoes of the previous generation, whether it is up to the task, and whether taking over is a responsibility from which one cannot simply quit if things don’t go as planned. For both generations, a sense of finality hangs in the air—the responsibility for something that embodies tradition, achievement, and employees, coupled with the fear of losing it all. This situation is emotionally explosive. And how often are these emotions left unspoken? For the older generation, it’s often simply because such conversations have never taken place—because they’ve been taught not to talk about weaknesses. For the younger generation, it’s often due to uncertainty in the face of the immense task at hand, the worry that speaking out about the responsibility they’re taking on will make the situation feel final—but also because such topics have never been discussed, and many would rather remain silent than risk striking the wrong note. And this is all too easy, even when dealing with hard facts. Emotional reactions can flare up time and again.
According to a study by the Bertelsmann Foundation, over 60% of outgoing business owners feel inadequately prepared to let go emotionally. At the same time, more than 50% of the successors taking over report a lack of recognition and a lack of trust in their competencies.
Trust as the Foundation
Trust is the emotional glue that binds the generations together. It doesn’t arise automatically when the keys are handed over; rather, it must grow through dialogue, transparency, and shared goals. Particularly helpful are facilitated discussions led by external facilitators or coaches, who help clarify unspoken expectations. It’s also beneficial to establish clear structures for regular communication: when we discuss what on a regular basis.
A successful example: A third-generation family business that planned its succession early on. The handover process began four years before the official generational transition. Regular facilitated discussions were held, during which not only financial figures but also fears, hopes, and visions were discussed. Result: A smooth, trust-based transition without any disruptions.
The Role of Emotional Intelligence
Emotional intelligence—that is, the ability to perceive, understand, and manage one’s own and others’ emotions—is central to the succession process. Business succession is also a matter of identity: Who am I when I hand over the reins? Who am I allowed to be when I take over?
A shift in perspective helps: Both sides should understand that succession is not a zero-sum game. The outgoing party does not necessarily lose significance. And the incoming party does not have to change everything to be effective. Mutual appreciation is the key to balance.
Figures That Catch the Eye
According to the KfW Succession Monitoring Report 2024, approximately 560,000 businesses are set to be handed over in the coming years. Nearly half of these businesses lack a clearly defined succession plan. The economic consequences are significant: estimates suggest that this results in the loss of billions in potential revenue each year.
Yet case studies of successful business transfers show that forward-looking planning, combined with emotional clarity, is the key to resilience.
Conclusion: The future depends on relationships
Succession is not just a contract, but a process of letting go, accepting, and rethinking together. Trust, emotional intelligence, and open communication are not “soft” factors, but “hard” success factors. Those who have the courage to prioritize these aspects not only ensure the company’s continued existence—but also lay the foundation for a strong, cross-generational future.
