Family Ties Online: Generational Change Calls for Thoughtful Planning

Ensure a successful transition by working with the company’s non-family staffers.

“To get along, you go along.” This timeworn cliché of management is frequently used by executives and managers to play it safe and stay out of trouble. For the family-owned business, it may not generate new ideas or solutions, but it doesn’t rock the boat either. Is this really desirable?

Few admit to subscribing to this philosophy, and it is certainly not in the classic entrepreneur’s style. But the “get along, go along” approach enjoys heavy use among many in a family business.

As the business passes from one family generation to another, it often moves from one established culture to another. This can mean change: new focus, new products, new services, new employment practices, new approaches to customer service all engendered by the interests and aspirations of the successor coupled with the changing times and technologies.

Family members may not be aware that non-family executives and managers who have been part of the team for years can feel threatened upon realizing that the old, established way of doing things is changing. The changes can deal with items as small as holiday presents or as significant as the support provided to customers.
The transition raises questions of direction, loyalty and security.
Where is the company headed as a result of the transition?
What is the impact of the transition on the stability of the business?

What happens to all the reassuring verbal promises given by the retiring family member?

What is the successor’s commitment to these promises?

What is the successor’s commitment to these promises?
Sometimes, the family members assume everyone understands their respective roles and futures with the organization. Sometimes, the family is unintentionally myopic. Instead of taking the time to learn the hopes, dreams and concerns of each non-family member, many family members presume to know what these are. This creates the mistaken impression that the new leader simply doesn’t care.

The problem is minimized when the company has a plan, a direction, a focus that is clearly articulated throughout the company. The family members must clearly understand that providing information selectively breeds paranoia, discontent and even the withdrawal of key players.

When the non-family executives are strong personalities willing to make their opinions known, they can deal with the problem directly. But to many, that is not a desirable course of action. So, what happens? The well-qualified non-family members leave, and those who remain adopt the “get along, go along” philosophy. It keeps confrontations and all their negative implications away, but it is not good for the company and the successor’s efforts to build a team for the future.

There are, however, actions the new leadership can take that will be both helpful and productive.

  • The simplest action is to ask the non-family executive to help with the transition. Provide both formal and informal means of building a team approach to solving the problems and overcoming the challenges of the business.
  • Give appropriate recognition for assistance provided. Don’t hide the fact that someone has helped with the transition.
  • Make certain there is a game plan and that both the family and non-family employees can see their roles in it.

When the “fear of the unknown” is removed from the relationships, all can focus on the future success of the business with a much more positive attitude and commitment to the success of the business.