More and more business owners today are grappling with one question: Where can I find a successor for my life’s work? Naturally, most founders hope that their family business will be passed on to a son or daughter, but how does that work?
Esther-Marie Kloth, a researcher who now works as an HR manager, addressed this topic in her doctoral dissertation. In her book *Ambivalences in Business Succession*, the author—who comes from a farming family—examines eight cases from various companies, including a metalworking shop and a farm, to explore the motivations for joining the parental business and describes the factors that facilitate succession.
For experts like Kloth, communication is one of the most important factors. Kloth advises an open exchange among those involved, in which the family business is not a constant “family topic.” According to her findings, if the topic of succession and the family business are constantly at the forefront, not only does the pressure on the successor increase, but so does the risk that this emotionally charged topic can no longer be discussed objectively.
In addition, experts emphasize that sensitivity on the part of the owner is absolutely essential. This is because the wishes and expectations of the owner generation differ greatly from those of Generation Y. Generation Y is considered well-educated; its members often hold degrees from technical colleges or universities and are highly knowledgeable about mobile communication and the Internet.
It is helpful for the business owner to know what kind of successors they have among their children. Researcher Carolin Brückner has categorized successors into five types. First is the tradition-preserver who craves harmony and is determined to become a successor in order to preserve traditions.
Second, she identifies the indecisive, duty-bound individual who puts his or her career aspirations behind the wishes of the older generation. The younger generation member feels an obligation to continue running the business and keep it alive.
The uncompromising self-actualizer thinks and acts quite differently. This individual is primarily focused on realizing their own interests and insists on seeing them through. They decide spontaneously to pursue generational succession when it serves their own interests.
The applause-seeking freedom fighter seeks individuation as the motivation for business succession. The younger generation member has been designated as the successor since childhood, but no plan for the business transfer has been developed. Consequently, the applause-seeking freedom fighter pushes for this.
The defiant “no-alternative” type postpones a potential takeover because external circumstances prevent him from making a commitment. However, the succession decision is not perceived as a burden because the successor does not commit to the succession.
Communication is a key component of success in all cases. If you’re looking for support in this area, check out our consultant directory. Alternatively, if you’re seeking an external succession solution, you can post an ad in the succession marketplace.
