Communication as driver of generational engagement in family businesses
Lack of communication is frequently pointed as a source for low employee engagement, failing succession or ineffective leadership in organizations. In his presentation at the FBN Czech annual conference and looking at an almost three century old family business, Louis de Schorlemer suggests that strategic communication comprising a mindful organisational framework, appropriate governance and attuned personal behaviour provides an opportunity for a novel approach.
Many of us have experienced situations where our teams, customers or shareholders have been struggling to follow senior management decisions, ultimately leading to tensions, court cases, sale or other disruptive exits. While separation is not necessarily negative, the root cause is often attributed to bad communication. Even if we acknowledge that truth may be multiple-faceted, reality is that we still wish to convince the other side with our point of view.
To sustain the business, we need to achieve sufficient alignment from our stakeholders. The older the business, the more decisive moments such as changes in leadership or ownership, refocus on the strategic directions, or major variances in financial success you will encounter.
Invariably, decisions are taken within the intangible and mostly intemporal framework of business ethos, ethics, values and the collective emotional memories. Even if some of these elements can be pinned on a wall, this is generally about the “normal-way-we-do-things-here”, known to those from “within” and the elder generation. Newcomers or non-family members may struggle with these unwritten rules and dealing with legacy unless leadership provides proper onboarding and further intentional proactive interventions.
Those initiatives will get shape within a formal governance and decline as the operating model. A model that would usually have a limited validity as it keeps adjusting to the broader economic and regulatory evolution of the environment in which it operates. Training the next generation for ownership or leadership, access to functions and roles, allocation of resources and decision-making processes fit within this pilar.
Yet, ultimately, for generational continuity of a business, it not only takes a vision and reserves, it also requires a benevolent sum of individual actions and decisions. If both the emotional memory of a family and the operating model provide a well-intended normative context, only the sum of all personal stakeholder decisions to support or oppose a direction will make the difference in terms of entrepreneurial resilience and longevity.
For a family engaged in the same business for over nine generations, focus on employee and customer engagement, aiming for what’s best for the business has been a core value. This support and resilient leadership allowed for the company to stay at the forefront of the European ceramic industry.
Louis de Schorlemer is member of GUBERNA since 2020. 8th generation family member, he serves on the supervisory board of Villeroy & Boch and chairs the nomination committee. He is a senior advisor in communication for transformation and lectures strategic business communication. Early 2024, he held the keynote at the FBN Czech Republic’ annual conference in Prague.
