In a company handover, the transition from a generational tandem is like a revolving door. Just as the simultaneous movement in the revolving door influences the transferor and successor, the degree of letting go and taking over also determines how effectively the generational transition succeeds. It is easier for transferors to let go when they see that the successor can and wants to take over - the assertiveness of the successor is crucial. Employee loyalty is also an important criterion: the successor must win over the employees in order to persuade the senior to take a step back.

Prospects for the transferor

A successful handover process requires the transferor to develop a clear perspective for retirement. Answers to questions such as dreams, goals, worries and activities create a basis for successful letting go. It is important for the transferor to be clear about the following points:

• Dreams and goals: Identifying and realizing personal dreams and goals after the handover.
• Worries and doubts: Dealing with fears and doubts about retirement.
• Involvement: Clear ideas about the role the transferor would like to play after the handover.

Actively shaping the succession

To ensure a smooth transition, successors should support their predecessors and promote alternative activities outside the company. A list of possible activities:

• New activities for the transferor: Search for meaningful and productive activities outside the company.
• Consulting contract: Offer of a consulting contract with clear conditions.
• Involvement in committees: Establishment of an advisory board or supervisory board with the transferor as a member.
• Charitable commitment: Assuming responsibility for charitable projects.
• Family activities: Activation of family members to enable the transferor to have fulfilling leisure time.

The key to conflict resolution

The generational change is characterized by an interplay between letting go and taking over. Conflicts can be prevented through clear communication and regular discussions.

• Decision-making processes: Important decisions should be discussed in private to demonstrate unity.
• Reversal of decisions: In the event of disagreements, the junior should independently explain why a decision is being reversed.
• Follow-up jour fixe: Regular open discussions create space for finding solutions.

A successful generational change requires commitment, understanding and the willingness of both sides to actively participate in the process.

The author

© Ulrich Hartmann

Prof. Dr. Alexander Koeberle-Schmid is a conflict mediator for family businesses and business families, owner strategy consultant, mediator (BM), family business coach (ICF) and INTES Endowed Professor for Business Families and Family Businesses at the Digital Business University (DBU).