Internal communication during the company handover

Franziska Klotz: Family businesses form the backbone of the Tyrolean tourism industry, accounting for over 90% of all businesses. The handover to the next generation is one of the most critical phases in the life cycle of these businesses. Only around a third of family-run businesses are successfully handed over to the second generation and only 10-15% make the transition to the third generation. Effective communication within the business family and with employees is a key success factor. As this topic has been largely neglected in both practice and research, my master's thesis makes an important contribution to understanding the importance of internal communication in the handover process.

Franziska Klotz: As part of my master's thesis, I conducted a qualitative study in which a total of 14 members of the entrepreneurial families and employees were interviewed in five family-run hotels. In four of the five hotels, the handover had already been successfully completed and the participants reported on their experiences. In one hotel, the generational handover is due to take place next year, which is why the interviewees talked about their impressions and preparations to date. In order to be able to take the size of the company into account in this context, the selected hotels differed in size. While the smallest company employs 15 people, the largest family business manages several hotels with around 400 employees. As I conducted all the interviews on site in the hotels, I was able to gain particularly authentic insights into this sensitive and emotional topic.

Franziska Klotz: With the help of my master's thesis, I was able to show that functioning internal communication is crucial for a successful handover and that the size of the company changes certain communication structures and processes. In smaller companies, communication is usually informal and spontaneous, with private and professional conversations being heavily intermingled. In larger companies, on the other hand, communication is more formal and the involvement of managers from outside the family and clear communication rules are more often necessary.
Regardless of the size of the company, communication is predominantly verbal in all family businesses surveyed. The need for external support depends less on the size of the company and more on the respective family and business situation. Consistent and timely communication between the business family and employees is particularly important.

Franziska Klotz:

1. Transparent communication: Honesty, openness and respect as well as a climate of discussion in which all parties involved can openly address their needs are key foundations.
2. Bring in external consultants: Regardless of size, all family businesses should consider whether consultants are necessary. They provide neutral support during the handover process and help with conflicts.
3. Be able to let go: Clear agreements on the role of the transferor after the handover are essential. Transferors should take on an advisory and supportive role and not give unsolicited advice.
4. Reduce role complexity: Members of family businesses often have several roles at the same time. Communication rules help to create role awareness. It is important that these are accepted by everyone.
5. Inform and involve employees: Consistent, continuous and consistent communication to employees is essential. Long-serving and senior employees in particular should be actively involved in the handover process.