In 2024, the largest wave of Australians turned 65 in history1. For family businesses, this demographic milestone signifies an important moment.
As many founders and senior leaders approach retirement age, the need for thoughtful succession planning and effective intergenerational collaboration has never been greater. Navigating this transition isn’t just about handing over the reins – it’s about evolving the business while preserving its legacy.
This balancing act is complex. It often involves navigating differing perspectives across generations, managing emotional dynamics, and making strategic decisions that impact both the business and the family. Yet, when approached with intention, these challenges become opportunities for growth and collaboration.
The power of generational perspective
In many family businesses, multiple generations work side by side. Each brings a distinct lens shaped by their generational experiences, values, and worldviews. Older generations may prioritise stability, stewardship, and tradition. Younger members often advocate for innovation, agility, and purpose-driven leadership. Rather than viewing these differences as obstacles, successful multigenerational family businesses treat them as opportunities.
The aim is to understand why family members from different generations view things the way they do. Let’s use the rising generations’ use of mobile phones during a meeting or training session. The older generations may view this as the younger generations being distracted or not listening – even a sign of disrespect. However, the younger generation may be using their phones for their notes function, to voice record, or to look up unfamiliar terms used in the meeting or training. However, unless a conversation is opened to discuss the use of mobile phones, there is a clear misalignment and misunderstanding between the generations.
By staying curious, family businesses can create a culture that fosters open dialogue, encourages mutual learning, and creates space for shared decision-making. This intergenerational collaboration strengthens resilience, fuels innovation, and ensures the business remains relevant across time.
With Gen Zs being the newest generation to enter the workforce, we could currently have four generations working in any one business. To successfully facilitate intergenerational conversations, all generations have a responsibility to try and understand the norms of the other generations, to appreciate their values, ideas, thoughts and opinions.
Navigating change with confidence
Change can be triggered by many factors – succession planning, market disruption, digital transformation, or shifts in family dynamics. In these moments, clarity and alignment of the family and the businesses values are critical. Families must ask:
- How do we honour our legacy while preparing for the future?
- What are the values and missions of the business that cannot change?
- If we were to remove certain values and missions, would be detrimental to the business?
- How do we build governance structures that support both business and family goals?
These are not easy questions, and they may mean different things to different generations. Therefore, they require thoughtful reflection, strategic planning, and often, external guidance.
We’re here to help
Our approach is grounded in empathy expertise, and a curiosity in understanding of what makes your family businesses tick. We work with you to create solutions that are tailored to your needs and reflect your story, values, and goals.
If your family business is facing change – whether it’s generational transition, strategic transformation, or simply a desire to future-proof – now is the time to act. With the right support, change can be a great chance to grow your legacy and build a business that’s more adaptable and ready for whatever comes next. Reach out to one of our Family Business Consulting experts today.
Article contributed to by Priscilla Ly – Private Business Tax & Advisory
1Older Australians demographic
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