BUSINESS WIRE: Cross-Generational Leadership in Family Business: New Study from Egon Zehnder and FBN Unveils Strategies for Success

MITTEILUNG UEBERMITTELT VON BUSINESS WIRE. FUER DEN INHALT IST ALLEIN DAS BERICHTENDE UNTERNEHMEN VERANTWORTLICH.

Global survey of 300 family business owners shows that while values are consistent across generations, differing approaches require careful management of the transition.

ZURICH --(BUSINESS WIRE)-- 30.10.2024 --

Egon Zehnder, the world’s preeminent leadership advisory firm, in partnership with the Family Business Network (FBN), the world’s leading family business organization, today announced the findings of their new study, “Building a Winning Cross-Generational Culture in Family Business.” The study draws on a survey of 300 family business owners, interviews with 86 family business leaders, and Egon Zehnder’s proprietary Culture Profile analysis.

“We understand family businesses—we respect their strengths, appreciate their challenges, and above all value their unique culture,” said Dominique Otten-Pappas, FBN Board Member. “This new study casts light on just how important that culture is for sustaining, and building on, a brilliant legacy.”

The results include the finding that, while 88% of business leaders agree that a strong culture is vital for ongoing success, only 39% are confident that their culture is very future-ready. To close this gap, cultural shifts must be carefully managed, especially at times of leadership transition. 'Family businesses are jewels in the crown of the global economy,” Elaine Yew, Co-head of Egon Zehnder’s Global Family Business Advisory, noted. “To thrive, they must consciously manage culture change, preserving timeless values while adapting to stay relevant and modern. All generations involved need to engage equally in evolving the culture.”

Family businesses are a mainstay of economies and employment worldwide. They owe this success to a distinctive culture, one which typically values family connection, strong principles, and a long-term outlook—but a new generation of leaders may not always agree on how to implement this vision. This report lays out a model for managing culture shifts and achieving successful cross-generational transition. “Leadership succession can be stressful for any company—particularly so where family and business are intimately entwined,” said Alexis du Roy de Blicquy, CEO of FBN. “We’re proud to unveil a roadmap for family businesses embarking on a path of culture change and look forward to supporting them on this journey.”

Key Findings from the Study:

• While family business owners surveyed overwhelmingly (88%) recognize the importance of a strong business culture for the future, a minority (only 39%) feel that their company culture is currently future-ready. This points to the need for managed culture change.
• There is a remarkable level of cross-generational agreement on fundamental values. Yet differences exist, often over approach rather than core principles, and may cause friction. As a new leadership cohort steps in, there is more than ever a need for communication and cultural alignment.
• We see three distinct modes of cross-generational leadership. In the first, the two generations may share a cultural core—but there is little communication and collaboration. In the second, generational approaches are integrated into a unified roadmap. And in the third, the upcoming cohort takes the lead as supportive prior leaders step back. Ideally, a business will progress through these three modes to achieve increasingly successful transitions.
• A successful culture shift must be consciously and actively managed. The study outlines best-practice enablers of this process, as well as clear action steps to advance from mode to mode in a managed and deliberate way.

“With years of experience advising family businesses, we know that farsighted leaders have a long-term view that embraces the next generation,” said Michael Meier, Co-head of Egon Zehnder’s Global Family Business Advisory. “This new study provides the tools to sustain that vision far into the future.”

For more insights on “Building a Winning Cross-Generational Culture in Family Business,” visit the report.

Survey Sample Size

• 300 participants
• 166 family businesses
• 35 countries across the globe
• Additional interviews with 86 family business owners from 39 businesses
• 75% of survey participants are decision-makers or strong influencers

About Egon Zehnder

Egon Zehnder is the world’s preeminent leadership advisory firm, inspiring leaders to navigate complex questions with human answers. We help organizations get to the heart of their leadership challenges and offer honest feedback and insights to help leaders realize their true being and purpose.

We are built on a foundation that supports partnership in the truest sense of the word and aligns our interests with the interests of our clients. Our 600 consultants across 66 offices and 36 countries are former industry and functional leaders who collaborate seamlessly to deliver the full power of the Firm to every client, every time. We believe that together we can transform people, organizations and the world through leadership.

For more, please visit https://www.egonzehnder.com/.

About FBN

FBN (Family Business Network) is a global not-for-profit membership organization headquartered in Switzerland, comprising 33 member associations spanning 65 countries on 5 continents, 4,500 business families, and 22,000 individual members. For over 35 years, FBN has helped enterprising families grow, succeed, and prosper through the exchange of best practices and innovative ideas.

By families for families, FBN provides a unique environment where business families can learn from each other. As a global community, we welcome all business family members and their diverse needs, interests, and roles, including Next Generations, Now Generations, Entrepreneurs, Large Families, Family Office, and Impact.

For more, please visit www.fbn-i.org.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029258415/en/

Cheryl Soltis Martel, Egon Zehnder, Cheryl.Martel@egonzehnder.com