Business and Family Observatory

Management

From Prada to Lavazza, when managers grow the family business

Among large companies in Italy, just over one in six has external guidance. Trust and harmony in objectives the winning recipe.

by Anna Migliorati

23 April 2025

4' min read

Key points

In Italy an external manager in 30% of family businesses. In France, Germany and Spain it is 80%.
In three out of ten cases, external guidance does not bring the desired results
Change of organisation and delegation essential ingredients

4' min read

(Il Sole 24 Ore Radiocor) - Family and managers, a marriage that is still not widespread in Italian companies, but which could become crucial in the generational transitions that are bound to affect the Italian economy in the coming years. Provided it works.

Prada, which with the double soul of Patrizio Bertelli as chairman and Andrea Guerra as managing director brings Versace back into Italian hands, is just the example that has grabbed the headlines in recent weeks. But there are Lavazza, which exceeded three billion euros in a difficult year for coffee. Illy, which only a few days ago presented its new capsule system at Milan Design Week. The Gruppo Cimbali, still in the world of coffee. Sapio, the Brianza-based company leader in industrial gases, protagonist of the first Italian hydrogen train, in Lombardy. These are all stories in which the leadership of companies that are rooted in the history of Italian entrepreneurial families is joined by external managers. But not in all cases has this been the case.

In Italy, distrust wins out more than in Europe

In Italy, more than 75% of family businesses with a turnover of more than 20 million euro are led by leaders belonging to the family, according to the AUB Observatory. Collegial leadership accounts for about 10%, while only in about 15% of cases does the leader come from outside. A picture that sees Italy still very different from the rest of Europe. According to a study by ManagerItalia, in 30% of family businesses in the Bel Paese there is only one external manager, compared to 80% in France, Germany and Spain. Moreover, the average in Italy is 0.9 managers for every 100 employees, against 2-3 of the main European competitors. All numbers that give a picture of a revolution yet to come. And which is far from simple.

"Certainly, the lower presence of medium and large-sized companies compared to France, Germany and, partially, Spain affects this statistic, but there is also a certain cultural prudence. Research shows the difficulties of these choices: in about 30% of cases, the start of the process of managerialisation does not lead to the hoped-for results and can turn out to be a real failure,' explains Paolo Morosetti, professor of Management in Family Business at Bocconi University.

Prejudices come from both sides. "Family owners, not yet accustomed to confrontation with external managers, may harbour misgivings: 'they are not as loyal as family members', 'they are too short-term oriented', 'they want to take control of the company', 'they are not transparent' and so on. On the other hand, external managers also harbour their own prejudices: 'family blocks change', 'career opportunities are limited', 'nepotism prevails', 'family businesses are marked by internal conflicts', 'too much tradition is preserved', 'there is a lack of openness to innovation'," she says.

Talent the compass of choice

Yet, 'clarifying and overcoming these prejudices is the first essential step to prevent them from becoming the main causes of failure. A kind of self-fulfilling prophecy,' says Morosetti.

To manage an enterprise, talent must become the compass that replaces the family tree or even affection. And that alone is not easy. Because aptitude or competence may be within the family. But also not be there. When, then, one changes perspective, the transformation affects the whole organisation. "On a cultural level, we need to separate ourselves from the belief that the functioning of a company depends exclusively on the presence, charisma or talent of one or a few key figures, be they the founder or the entrepreneur, in order to accept the idea that an organisation is such when it is able to operate through consolidated and modern structures, policies, processes and routines, capable of guaranteeing efficiency and effectiveness independently of the alternation of individuals or professionalism," Morosetti emphasises.

Without tuning, the recipe does not work

Yet, where the mechanism works, it pays off. Among the champions of growth and longevity, the leadership team tends to be composed of a combination of family and non-family managers, with the latter predominating. So, how to decide? First of all, set a goal for the manager to achieve, "on which the evaluation will be based", but "it is also essential that family leaders are willing to cede authority. Building a relationship of professional trust, where goals are shared but execution is delegated, is essential'.

Syntony is the watchword. Which also passes through the awareness that 'it is a process not without risk' and 'the first choice may not be the final one, the relationship with external management may require a period of adaptation, and one should not think that the choice of manager is equivalent to having managed, it is only the step of a long journey'. On the other hand, we need managers who know the context in which they arrive. "It cannot be taken for granted that a manager, who is used to dealing with technicalities and a more managerial style of communication, is naturally inclined or able to build a relationship with entrepreneurial figures or to disentangle himself within the more value-based and socio-emotional dynamics that can arise in family businesses". Because a family remains a family even when it runs a business.

"Finally, competition between family and non-family managers or between ownership and external management must be avoided. Management is a process of co-creation where the strength of family ownership is combined and balanced with the value of management disciplines'. With family and managers rowing together to achieve growth objectives.

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