Successful communication when changing ownership

88% of all companies in Switzerland are family-run businesses and employ around 65% of the labor force in our country. They are one of the most important pillars of our economy. One of the biggest challenges for family businesses is succession planning. Regardless of whether the company remains in the family or is taken over by a person from outside the company: A change in leadership is always associated with uncertainty – for employees and external stakeholders. This makes planning of forward-looking communication all the more important.

Communication as an important success factor

In addition to clarifying the financial, tax and legal issues that are paramount in an ownership change, communication support for the succession process takes on a central role. It is important to provide reassurance to all stakeholders, both internal and external, through good and clear communication. In our fast-paced world in which everyone has the opportunity to communicate, it is important to take the reins quickly and carefully steer the flow of information. At the same time, the social need for inclusion and the desire for a meaningful task must not be neglected. Employees want to be involved and enjoy taking on responsibility. Leadership is required.

Leadership communication

The challenges of an ownership change are also opportunities. Leaders who actively listen, create trust, and communicate openly and clearly can capitalize on this momentum for themselves and their company. The most important elements are:

• Create identity
  A leader must justify his decisions. He must clearly communicate the “why” to employees. A boss’ presence should be felt. Employees want to experience the sincerity of the owner. They want to experience that the new person loves what he does. This inspires employees to do their best.

• Demonstrate trust
  Open communication is essential to building trust. Employees need to feel that management stands behind decisions and follows through on them – and is also willing to make bold decisions. This requires an environment in which everyone can express their opinion and employees feel comfortable.

• Taking a stance
  All eyes are on the new boss. He represents the company internally and externally. He is a role model and through his actions makes the values evident. His behavior has a direct impact on the company’s reputation.

Learn more in our white paper «Why good leadership is communication». Order here.