It sounds dramatic. But after a generational change, where the new generation takes over management, this could be the result.
Fortunately, the owner family can prevent this situation from arising. The risk can be minimized if the family is aware of the company's core values—and the importance of safeguarding them.
Because we humans are different, both as individuals and across age groups. We usually want to move in different directions. So, for a family business to succeed in a generational transition, it must be based on at least one common point of reference:
The company's values.
Sure. Values can change over time. The core values that shaped how my dad built and ran our family business reflected not only his personal values, but also his generation's way of "doing things."
But the core was made of something unchangeable.
Honesty, a sense of justice, and professional thoroughness. My father's insistence that we should develop specialized products if that was the best solution for our customers—even if it meant sacrificing the company's bottom line.
Values that are fundamentally sound can survive many generational changes. And they are universal enough to form the basis for new business successes, even as the world, generations, and corporate strategies change.
Admittedly, there were aspects of our generational transition that I, as the new chairman of the board, could have handled better. However, one of the reasons our company ended up in such a strong position is that those of us who took over upheld my father's values and made them our own.
Sure, we stumbled along the way during the generational shift, both as a company and as a family. But we were able to get back up and keep going because we stood on the foundation of values laid down by the previous generation.
Please contact me if your family business is facing a generational change. Together, we can assess whether your owner family needs help in passing on its core values in a way that is future-proof.
