Ego, power and relationships: the invisible challenges of generational transitions in companies

The first negotiation business owners have to make is therefore with themselves, since thinking they are eternal is a limitation to the growth of the organisation: one has to accept the transience of life by cultivating a new generation of leaders in good time.

Power is an 'uncomfortable' subject to deal with, almost a taboo to be ashamed of. Yet it is the enzyme, the indispensable engine to make things happen. Numerous sons and daughters of entrepreneurs boast lofty job titles that do not, however, coincide with actual decision-making power. And the nature of this inhibition is mostly cultural, as people in Italy are often reluctant to deal openly with monetary issues. Consequently, the transfer of quotas - and therefore of power - risks being postponed, generating ambiguity and dissatisfaction.

A second reason might relate to convenience, since those in power do not need to make it explicit. That is why it is the new generations that must have the strength to bring the issue to the table, addressing it in a humble, respectful and, at the same time, decisive manner.

The third resistance lies in accepting generational diversity within companies. It is not uncommon for grandparents, children and grandchildren to sit at the management tables of family businesses at the same time. And in today's age, the generation gap is even more pronounced due to the sudden changes in the world of work. Today's entrepreneurs must be able to combine tradition and innovation, adopting business strategies that take into account the interests of all age groups.

The key is to turn these physiological differences into value by bringing together different mindsets, ways of working and ideas. Keeping relations between generations alive is crucial in order to avoid clashes that, over time, can generate discontent, frustration and, in the extreme, rupture.

Cases where it is the entrepreneur himself who plans the generational transition with foresight remain, alas, isolated. Conversely, when those in power do not appear ready to hand it over, the heirs stand by hoping that time will bring change.

Between these two extremes, however, there is a third way, one in which it is the new generation that proactively activates a dialogue capable of shifting the focus from personal positions (who should lead and how) to shared interest. That is, safeguarding the continuity and solidity of the company over time.

This is the case of the heir to a pharmaceutical company who some time ago approached my company with a mandate that was as clear as it was threatening and harboured a strong conflict: 'I am here to take the sceptre of power away from my father'. In order to acquire the necessary skills and the trust of stakeholders, he went through an intensive training course to develop his commercial, interpersonal and leadership skills. His ambitious goal succeeded five years later with his appointment as CEO, taking over from his father as Chairman. While the father was in charge of a few strategic aspects, the management of more operational decisions was in the hands of the son.

Roles and responsibilities were clearly defined, reducing grey areas and significantly improving the relationship between the two. An approach that fostered a more serene climate, while stimulating commercial and organisational development and bringing sustainable growth to the company.

From this experience, the young entrepreneur realised that dealing with a generational transition does not mean 'kicking the king off the throne' but, rather, positioning oneself on the chessboard so that each pawn can enhance its own talent.

*Director of the Academy of Strategic Communication