Conflict Management Between Old and New

Conflict Management Between Old and New: Challenges and Solutions

Business succession is a complex process that requires consideration not only of financial and strategic aspects but also of interpersonal conflicts that may arise. The relationship between former owners and successors is often marked by tensions. Differing visions for the company’s future, emotional attachments to past successes, and the establishment of new roles frequently lead to conflicts that can complicate the handover. Effective conflict management is therefore essential to ensure a smooth and successful transition.

Typical Conflicts Between Former Owners and Successors

Common conflicts between former owners and successors often involve disagreements over the company’s strategic direction. While the former owner tends to adhere to established traditions and processes, the successor usually seeks innovation and modernization. This tension between preservation and change can strain collaboration.

Another frequent issue is the lack of clear boundaries regarding roles and responsibilities. The former owner, who has been the central decision-maker for many years or decades, often finds it difficult to relinquish operational control. This can limit the successor’s decision-making freedom and lead to frustration. A practical example illustrates how a family business fell into crisis because the former owner continued to make operational decisions even though leadership had officially been transferred to the successor. This situation caused misunderstandings within the management team and a loss of clarity for employees.

The Importance of Clear Communication Channels

Open and respectful communication is key to resolving conflicts between former owners and successors. Regular meetings to discuss strategic and operational issues create transparency and foster mutual understanding. These discussions should not only involve information exchange but also clarify expectations and define shared goals.

A proven approach is the monthly fixed meeting (Jour fixe), where former owners and successors discuss current challenges and long-term plans within a structured framework. Such regular meetings provide an opportunity to identify and resolve conflicts early before they escalate. They also build trust between the parties and promote constructive collaboration.

One example demonstrates how this model can be successfully implemented: In a mid-sized company, a father and son agreed to hold a weekly fixed appointment to discuss strategic decisions. This structure not only helped avoid operational misunderstandings but also allowed the son to gradually take over company management while the father focused on an advisory role.

Role Clarification and Areas of Responsibility

Clear delineation of roles and responsibilities is essential to avoid overlaps and prevent conflicts. The former owner should be aware that their primary role after the handover is to support the successor without interfering in operational decisions. At the same time, the successor must be empowered to act independently and implement their vision for the company.

A phased transition can facilitate this clarification. For example, the former owner might initially take on advisory functions before fully stepping back. A clearly defined timeline and written agreements regarding respective roles can help prevent misunderstandings. In one case, a successor took over operational management of a manufacturing company while the former owner focused on maintaining relationships with key customers. This clear division of tasks fostered a harmonious working relationship and allowed both parties to leverage their strengths.

Mediation and External Support

In many cases, involving a neutral third party can be helpful in resolving conflicts. A mediator can act as an intermediary between former owner and successor, helping to ease tensions and find solutions acceptable to both sides. Mediation is particularly suitable when communication between the parties is strained or when fundamental differences exist regarding company management.

External consultants can also provide valuable support by offering an objective perspective and assisting in the development of a shared strategy. In one case study, a company engaged a mediator to clarify differing views between father and son on the company’s future direction. Through facilitation, an agreement was reached that took both perspectives into account and laid the foundation for successful collaboration.

Long-Term Collaboration and Corporate Culture

Sustainable conflict management goes beyond resolving immediate issues and focuses on fostering long-term cooperation. Former owners and successors should work together to cultivate a corporate culture based on trust, openness, and mutual respect. Regular feedback sessions and joint workshops can help continuously improve collaboration and respond to new challenges.

An example shows how a company established a culture of openness through regular workshops involving the entire leadership team. Former owners and successors not only exchanged experiences and ideas but also jointly developed visions for the company’s future. This active collaboration strengthened the relationship between the parties and sent a positive signal to employees.

Through clear communication, role clarification, and the involvement of neutral support, conflict management between old and new can be effectively structured. This not only enables a harmonious transition but also lays the foundation for the company’s long-term success.