Stick or twist: managing tradition
versus innovation in family succession

Discover how families can honour tradition and embrace innovation
as they transition from one generation to the next

Treating succession like a startup

It’s a question many families find themselves pondering at some point: how can you preserve the family legacy while building a foundation for the future?

In our view, the answer lies in balancing tradition and innovation by understanding how each complements the other. Tradition anchors identity and values, providing a foundation for continuity, while innovation injects energy and adaptability to meet new challenges. Succession sits at the intersection of these powerful forces, transforming generational transition into opportunities for shared progress.

For founders, tradition often feels like a source of security—a way to protect their values, achievements, and systems. For successors, innovation might be seen as a path to shaping the family’s future and leaving their own mark.

But this dynamic doesn’t have to pull the family in opposing directions. Instead, it can become the starting point for something entirely new.

If a family views succession as a startup, they can realise the importance of strong leadership, cohesive teamwork, and a clear vision to navigate complexity and uncover opportunities. But to thrive in this context, the family must achieve a delicate balance: loyalty to stability paired with a readiness for change.

Families that unite individual aspirations with a common purpose, define roles clearly, and take calculated risks are better positioned to succeed. These risks might include:

  • Redefining leadership roles to reflect evolving family dynamics
  • Restructuring ownership for sustainability
  • Exploring ventures that push boundaries while staying true to the family’s vision

Achieving this balance demands strategic foresight and significant investments of time, resources, and emotional energy.

But balancing tradition and innovation also requires addressing the deep-seated emotions and behaviours that often shape the roles of founders and successors.

If there are tensions, what are the emotional dynamics beneath them? More importantly, how might they influence the transition process?

 

What lies beneath: considering the emotional dynamics behind the tension

For founders, relinquishing control can evoke strong and conflicting emotions. They may fear that change will unravel the legacy they have built. They may even doubt the next generation’s ability to safeguard it.

This struggle is often rooted in loss aversion—the psychological tendency to focus more on potential losses than gains. Many founders gravitate towards the comfort of the status quo, avoiding the uncertainty of change.

This tension is vividly illustrated in Charles Dickens’ novel Dombey and Son.

Paul Dombey’s business symbolizes his identity, and the prominence of his family. He dreams of passing the business to his son, a dream that embodies both continuity and control.

When his son dies, Dombey is unable to adapt. He clings to his original vision, even when his daughter Florence demonstrates that she has the potential to lead. His rigid adherence to tradition blinds him to her capabilities, and his inability to let go accelerates the business’s decline. For Dombey, acknowledging Florence’s leadership feels like surrendering the essence of his legacy.

Resistance from founders, however, is not always unwarranted. Sometimes, it can stem from genuine caution, particularly when successors may not yet be prepared for leadership.

Managing complex businesses or estates requires preparation, alignment, and skills that successors may still be developing. Recognizing this fosters a thoughtful approach to succession, avoiding biases that assume the younger generation is inherently “right” or the older generation is simply “resistant.” Plans that include mentorship, recalibration, or alternative solutions—such as engaging external professionals or pursuing philanthropic goals—can safeguard the family’s broader vision.

For successors, the psychological challenges are no less daunting. They must walk a fine line between respecting the past and carving out a meaningful future. Florence epitomizes this struggle. While striving to be loyal to her father’s legacy, her vision challenges his expectations, leaving her feeling powerless, alienated, and frustrated.

For many successors, proposing new ideas is a way to assert relevance, create impact, and build a space where they can thrive—free from the weight of comparison and fear of judgment.

The heavy expectations of family, coupled with a fear of making mistakes, often amplify the need for a “safe space”—an environment where benchmarks are still forming and they can grow with confidence. In this space, successors navigate the tension between duty to the past and innovation for the future, striving to bridge generations under intense resistance and scrutiny.

The interplay of a founder’s fear of letting go and a successor’s desire for recognition creates emotional tensions that, if left unresolved, can deepen divides and hinder growth. Understanding these dynamics is critical to bridging differences and translating them into practical strategies—a roadmap that guides families toward a shared vision for the future.

 

Creating a roadmap for the future

This roadmap should not only identify obstacles but also translate emotional insights into tangible strategies. It should merge individual goals with a collective vision— after all, succession isn’t a single event but an unfolding journey that thrives on clarity, adaptability, and collaboration.

In this context, a roadmap should be designed around three key dimensions that help families navigate the complexities of succession while aligning tradition and innovation. These dimensions provide a structured approach that balances stability with flexibility.

 

1. Setting a foundation with a business plan

Like a business plan for a startup, a roadmap transforms the inherent challenges of succession into opportunities for growth and renewal.

It builds on a strong foundation while remaining adaptable to changing circumstances. By outlining milestones, clarifying roles, and setting expectations, it provides structure while allowing for flexibility as situations evolve. For founders, it offers reassurance that their legacy is thoughtfully considered. For successors, it provides a framework to assume leadership with confidence, enabling them to build on the past without feeling constrained by it.

While a clear business plan sets the stage, translating these ambitions into action requires governance structures and accountability systems to ensure alignment with the family’s evolving needs.

 

2. Strengthening governance with flexibility and safeguards

Transitions rarely unfold exactly as envisioned. Some successors may require additional time, preparation, or external support before stepping into leadership roles. Resistance from founders often reflects a deep sense of responsibility to protect the family’s legacy rather than inflexibility. Thoughtfully designed governance systems can help families navigate these uncertainties, combining structure with adaptability.

Practical mechanisms, such as governance councils, leadership transition plans, and feedback loops, can help align individual ambitions with collective goals. By addressing both present needs and future opportunities, governance frameworks provide a foundation for continuity while fostering growth and renewal.

Contingency plans—such as involving external management, revisiting timelines, or recalibrating goals—ensure the transition aligns with the family’s broader vision, even when adjustments are necessary.

 

3. Building bridges through open dialogue

Open dialogue is often crucial to navigating these complexities. Honest conversations about what must endure and what can evolve foster trust, accountability, and shared purpose. Respect and a willingness to leverage each member’s strengths further enrich the process.

Open communication transforms succession into a collaborative effort. Gradual transitions of ownership, control, and income participation ease the pressures of change, while proactive collaboration creates opportunities for mentoring and shared learning. Together, these steps help families balance continuity with innovation, ensuring their legacy evolves with changing realities.

By addressing the tensions between founders and successors, families can navigate emotional challenges with empathy and understanding.

A well-crafted roadmap serves as a guide, offering structure and flexibility while fostering open communication and trust. The success of succession is in the relationships it strengthens, the shared purpose it fosters, and the vision it creates for future generations. Thoughtfully approached, succession becomes an opportunity to redefine leadership, deepen connections, and sustain the family’s legacy as a dynamic and evolving force.

 

Questions for reflection: tradition and innovation in succession

For founders: honouring the past and letting go

  1. Which aspects of your family’s legacy are non-negotiable, and where might you be holding on unnecessarily? How might loosening your grip empower the next generation?
  2. What does success look like for the next generation— preserving your vision or being able to create their own? How can you inspire confidence in this balance?
  3. Are there assumptions you hold—like Paul Dombey—that might limit your family’s future? How can you uncover and address these perspectives constructively?

For successors: innovating with respect

  1. How can you honour your family’s legacy while articulating a vision for the future that feels authentically yours?
  2. Have you considered the emotional investment your predecessors have in the family’s history? How can you bridge that understanding while advocating for change?
  3. What areas of preparation—such as skills, relationships, or leadership experience—might you strengthen to step confidently into your role? Who can mentor or support you in this growth?

For families as a whole: bridging generations

  1. Are there hidden assumptions or unspoken fears in your collective approach to succession that might hinder collaboration? How can you surface and address them together?
  2. How can you create safe spaces for open conversations about fears, aspirations, and roles across generations?
  3. What governance structures—such as family councils or advisory boards—might bring clarity, shared accountability, and alignment to the transition?
  4. How can you redefine success to focus on thriving relationships, shared purpose, and evolving family values, beyond just business growth?
  5. What values or principles can anchor tradition and innovation during this process?