Addressing communication challenges during succession and generational change.
5 Things You Will Learn in Just 3 Minutes:
- How early succession communication can minimize uncertainty.
- How to strategically address different stakeholder groups to build trust.
- Why emphasizing continuity and values is crucial for generational transitions.
- How to professionally handle the “elephant in the room” question when succession involves an external candidate.
- Which communication channels are most effective for successful succession communication.
Succession communication in family businesses is essential to maintain the trust of all parties involved and is therefore a key factor in successfully managing generational transitions. It should begin early and should be strategically planned to ensure transparency. Therefore you should consider the following points:
- Early Planning and Transparency
Communication should commence early, ideally several years before the handover, to build trust and minimize uncertainty. A clear, coordinated strategy helps to involve all stakeholders early and maintain transparency throughout the process. - Target Group Orientation
Different stakeholders – family members, employees, management, customers, and business partners – have varying informational needs. Internal communication should precede external communication to ensure that employees do not learn about succession plans from rumors. - Emphasize Continuity and Values
Successful succession communication conveys that the company’s core values and quality standards will be maintained. Simultaneously, the successor should be introduced as a personality, presenting their vision and any potential changes transparently to build trust. - Communication Within the Family
Communication should also address the family and children. In cases where succession occurs outside the family, the question of why the children are not taking over remains the “elephant in the room.” A brief explanation can defuse this situation. - Choosing the Right Communication Channels
Personal conversations, company meetings, and digital formats such as newsletters, corporate blogs, or video messages are suitable for effectively reaching different target groups. The choice of channels should reflect the corporate culture and structure.
A successful communication process in the context of succession is always linked to the actual course of the handover process. It should be carried out step by step and provide an outlook on the next steps while leaving sufficient room for individual dynamics. Accompanying experience is crucial here—whether internal or external expertise.
The end goal is always to build trust through an authentic presence, clear messages, and coordinated communication between the current and future leadership. This is the only way to ensure that the transition is positive and supported by everyone involved.
Conclusion:
Succession communication requires a high degree of strategic planning, sensitivity, and targeted messaging. This approach helps to foster trust in the generational transition and the new leadership.
To assess whether your succession communication is strategically planned and well-structured, consider the following questions:
- Has an early communication plan been developed to minimize uncertainty?
- Have the needs of all relevant stakeholders – from employees to business partners – been considered?
- Have continuity and corporate values been clearly communicated to build trust?
- Is there a strategy in place for responding to family-related succession questions?
- Have suitable communication channels been defined to reach all target groups?
Creating a succession communication strategy can be overwhelming. Leverage our expertise from over 20 years in investor relations. Contact us via the form below or reach out directly to Claudius Krause.
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For 25 years, we have been combining capital market expertise with in-depth sustainability analysis and structured consulting approaches. In over 1,000 mandates, we have learned to be both a long-term partner and a flexible source of expertise. Whether it’s an IPO, an M&A transaction, a (double) materiality analysis, or the complex field of ESG regulation, we bring clarity to challenging issues and create a solid basis for decision-making. Our services are tailored to promote exactly what matters to you— whether it is economic success, sustainable impact, or, ideally, both.
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