Passing the Baton in Family Enterprises: Why the Conversation Can’t Wait
In family enterprise systems, generational transitions are inevitable, but rarely straightforward. I speak with people navigating these moments all the time. Both generations often carry big expectations, yet avoid the very conversations that would make the handover easier. The situations vary, but the fears often share the same root: uncertainty, and a reluctance to have the conversation.
I see it in first-generation founders and CEOs who want to set the next generation up for leadership over the long term. In adult next gens who know - without it ever being said - that they’re expected to take over a farm, an estate, or a business, but who have never had a single real conversation with parents, in-laws, or siblings about what that actually means.
And in next gens in their twenties who know a significant amount of wealth is coming, but have no idea how much or when. They want to know so they can make sensible decisions about work, career, and life, yet they feel it would be “too grabby” to ask.
Generational transfers in family enterprise systems can involve ownership of assets, leadership roles (executive or non-executive), or other responsibilities tied to the family’s legacy. Whatever the form, both sides often carry unspoken fears.
For those passing it on:
Will they be ready? Will they respect what’s been built?
What will my role be once I’m no longer “the one”?
If I step back, will the work of my life lose its purpose?
For those stepping in:
Am I ready? Will I measure up?
How much freedom will I have to do things differently?
I don’t want to seem pushy or acquisitive by asking questions, but I also don’t want to be unprepared and fall short when it matters most.
It’s tempting to wait until every detail - timelines, structures, expectations - is settled before talking. But that delay can make the transfer harder. In my experience, and in much of the research, these conversations in family enterprise systems should happen earlier than most people think.
Avoiding them often leaves everyone in limbo, filling in the blanks with guesswork, mixed signals, or quiet worry. You can’t have all the answers, but you can control some of the chaos. Starting the conversation sooner helps replace ambiguity with shared understanding and stops unhelpful meaning-making from happening behind the scenes.
A better place to start: Talk about what you do know and name what you don’t.
From the giving side:“I’m not sure yet exactly when or how the transfer will happen, but I know I want you to feel prepared and confident when it does.”
From the receiving side:“I don’t yet know the full scope of what I’ll be taking on, and I don’t want to seem pushy in asking, but I’d like to understand the intentions and expectations so I can prepare well and be ready to steward what’s being entrusted to me.”
These opening lines lower the temperature, make the intent explicit, and create space to explore the unknown together. Because generational transfers in family enterprise systems aren’t just about moving an asset or a leadership title from one set of hands to another.
They’re also an opportunity to transfer confidence, trust, purpose, and wisdom across generations and that process can start today, one conversation at a time.