Generational changeover in family business: challenges and opportunities for family businesses

Change is a phenomenon that, while 'crisis', opens up new horizons to a range of possibilities. Human beings tend to maintain general homeostasis, i.e. both a physiological and psychological balance. This condition of internal stability, written in the genetic code, can sometimes be dysfunctional and not allow for change. When it does occur, however, it is a progressive process that requires time and multiple steps, with two main aspects to bear in mind: small changes can generate big results and their manifestation, although sudden, is the result of a gradual process. In this context, the presence of an external facilitator capable of establishing a supportive relationship with the entrepreneur who knows how to listen and ask questions of 'meaning' can therefore make all the difference.

Tell me three attributes an entrepreneur capable of governing change must have?

Leaving the helm, especially after so many years, is not easy, and it can only be done by accepting the natural flow of life and the knowledge that the challenge of generational transition can be overcome. Courage, empathy and patience are required of the entrepreneur. Courage in facing a process of change whose outcome is uncertain, empathy towards junior figures whose ideas and values may be misaligned with those of seniors but, above all, patience. While succession is an instantaneous event that determines the transfer of ownership, shares and stock, continuity is instead the path that leads to the transfer of know-how and experience from one generation to the next, a path that, at a time when everything is fast-paced, takes a long time.

You talk about a set of tools to manage the generational transition? Is artificial intelligence one of them?

Each generational transition is unique, while the cases of failure are different and the cases of success are united by certain cornerstones. The first is planning. It is necessary to plan from the transfer of rights, responsibilities and management to the gradual exit of senior figures. The way is to create a bridging support for junior profiles, an intergenerational synergy, aimed at gradually giving responsibility for governing company dynamics to the latter. The senior's role then evolves into that of an advisor who supports and guides the decisions taken. This transfer of competences should be bidirectional, on the one hand know-how and experience and on the other hand technology and innovation. When a generational handover takes place, it is also appropriate to focus on strengthening strategy and organisation. One must ask oneself, in particular, how the market is moving, what developments are impacting on the company. It is not just a matter of extrapolating from the past but of imagining future scenarios in order to be increasingly competitive. And in this prospective analysis, artificial intelligence can certainly be a very helpful tool.

How many 'Gio' are there in Italy?

Family business in Italy is characterised by the significant presence of entrepreneurs over seventy years old who continue to manage their businesses in a centralised manner, without delegating decisions and powers to anyone. The obstacle to 'letting go' is represented by the strong bond that is established between the entrepreneur and the company, considered his creature. Recognising and overcoming this identification is the starting point but the majority of entrepreneurs, however, fail to do so or do not even contemplate tackling the issue. And the consequences of this non-choice undermine Italian success stories, impacting families, employees and, in some cases, entire territories.