Generation Change - For Family Businesses

Generational change with Coaching
and Organisational Development.

The Succession Secret of a Successful Family Business!

We help Hungarian family businesses to smoothly transfer the life's work. We bridge the generation gap and ensure the success of the company flourish under new leadership.

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Why it is essential to Generational change with Coaching support?

The generation change (family business)

In the case of Hungarian family firms, **generational change** is the critical and often emotionally charged process whereby the founder-owner transfers ownership and operational management of the company to the next generation. This step goes far beyond a simple administrative or legal transaction; it is also the inheritance of a „life's work” built up over decades, a strategic, psychological and cultural shift.

For domestic family businesses, the shift is not about contracts, but about **people**, expectations and unspoken and unstated fears.

This is where we step in with **Generational Change Coaching**. Our goal, to help the parties understand each other as external, objective parties, and together lay a clear framework for the future of the company.

These are the Most Common Dangers of Generational Change

Based on more than 10 years of CoachLab experience, the most common obstacles that can cause family businesses to fail without the support of **Generational Change Coaching** are:

  • The Inability to Let Go: The identity of the founder is synonymous with the company. He cannot step down, thereby undermining the authority and decisions of the successor.
  • The Family Role Conflict: A company dispute can easily turn into a personal insult because the parties cannot separate the roles of boss-subordinate and father-son/mother-daughter.
  • Unmotivation of the Successor: The next generation may not always want to take on the burden or have a different vision for the future of the company than the founder.
  • The Generational Communication Divide: The „founding spirit” and the „new digital mindset” do not find common ground on strategic issues.
How do we deal with these conflicts?

The CoachLab Solution: Generational change with Coaching for the Peaceful Transfer

With decades of management experience, we offer the most efficient three-step process:

1. Individual Executive Coaching

We hold up a clean mirror to the founder and successor. We help the founder to process the letting go and the successor to strengthen their leadership identity.

2. Joint, Facilitated Planning

We are the „translators” between generations. We filter out the family emotions and help you lay down a precise handover schedule and responsibilities on a business basis.

3. Modern Organisational Development

The change affects the whole team. We help you retain key people and prepare your organisation for the new strategy. The goal: not just survive, but thrive.

Future-Proof Handover: Organisational Development and New Tools

With **Generational Change Coaching**, we don't just improve communication. During the organisational development phase, we help the successor to build a modern, efficient company.

Example of AI Automation

In a family business, the successor was confronted during coaching with the fact that the administrative processes of the company were taking up too much time. As part of the coaching, we identified manual tasks where simple **AI automation** solutions could free up the new manager's time for strategic work.

In CoachLab's experience, successful **generational change** involves preserving old values and introducing modern tools so that the successor can lead in a more efficient system rather than in the shadow of the founder.

Don't Let the Life's Work Fall on Communication!

With **Generational Change Coaching** the best investment for your family business continuity and family peace. Start the process today today, while there is still time for conscious planning.
Let's start with a Personal, Free of Charge Assessment!

Ask us for a free introductory online consultation! We'll discuss where you are now and how CoachLab Coaching Services can help you make a smooth transition.

Frequently asked questions about generational change:

Generational Change Coaching and Organisational Development. FAQ - Frequently Asked Questions - FAQ - FAQ
Generational change with Coaching
and Organisational Development.

When is it „too early” or „too late” to start the generational change?

The short answer is: never too early, but very easily too late. According to our experts, the ideal is to start the first conversations and conscious preparation 5-10 years before the planned handover. If the house is already „on fire” and the founder suddenly drops out, it almost always leads to chaos.

What if the founder and the successor have completely different visions for the future of the company (e.g. digital vs. traditional)?

This is the most common conflict in generational change. This is where coaching comes in: the aim is not for one of them to „win”, but to turn the two perspectives (stability of experience and drive for innovation) into a common strategic goal that is acceptable to both parties.

The founder „can't let go”, he continues to step in and interfere. How to deal with this?

This is the „Founder Syndrome”. The identity of the founder is intertwined with the company. A coach helps the founder to work through this letting go process and find a new, meaningful role (e.g. mentor, board member), while giving the successor real freedom of choice.

Why do you need an external coach? Can't we „do it within the family”?

It is almost impossible to remain objective within a family. Conversations are fraught with decades of grievances, unspoken expectations and role conflicts (e.g. „are you saying this as my father or my boss?”). An external, independent coach acts as a „translator” and moderator, free of emotion and focused solely on the common goal.

How can I be fair if I have several children but only one of them works in the company?

This is a huge source of tension. According to international practice, it is key to separate ownership (can be equal) from leadership (should go to the best person). Coaching helps to lay down the family and business „rules of the game” (e.g. family constitution) that clarify who gets what role and how this relates to inheritance.

What if my child doesn't really want to take over the company, but just doesn't dare to say no?

This is more common than we think, and it leads to the slow death of the company. Coaching gives the successor a safe space to honestly explore their own motivations and fears. Sometimes, the best solution is to recognise that, for example: bringing in an external manager (while keeping ownership in the family) is a better decision.

How can we prevent business disputes from destroying family relationships?

The most important tool is conscious „framing”. You have to learn when to speak as a „company executive” (e.g. in the boardroom) and when to speak as a „family member” (e.g. at Sunday lunch). Coaching helps you to set these boundaries and to learn communication techniques that will keep arguments from becoming personal attacks.

How do we communicate the change to the old, loyal staff? They fear a successor.

Uncertainty is the greatest enemy. As part of organisational development, a well-developed communication plan is needed. The handover should be transparent and gradual. A coach helps to prepare key people (e.g. through team coaching) to be change agents rather than barriers to change.

What is the purpose of the Generational Change Coaching process? Are we just talking?

The aim is not to talk the talk, but to act and reach a clear agreement. The outcome of the process is a concrete, laid down succession plan that includes the powers, responsibilities, a precise timetable for the handover and the founder's new role.

What is the biggest mistake family businesses make when changing generations?

Procrastination. Business owners think „there's still time” or „the kids will sort it out when I'm gone”. The reality is that unplanned generational change leads in most cases to fragmentation, loss of value or family break-up.

Generational change through coaching

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