In many family businesses, a significant emphasis is placed on preparing the next generation of leaders for success, ensuring they have the necessary skills, knowledge, and resources to lead the organization into the future. Extensive time and effort are invested in preparing successors, developing their leadership capabilities, and familiarizing them with the intricacies of the business. However, an equally important, yet often overlooked aspect of this transition is the need for current outgoing leaders to prepare themselves emotionally as they relinquish control over the business.
For many outgoing family business leaders, their identity and purpose are deeply intertwined with their leadership role. The emotional attachment to the leadership position and the organization cannot be understated. Years of dedication, hard work, and personal sacrifices have been invested in building and growing the family business. The daily routines, relationships with employees and colleagues, and feeling in charge all contribute to a strong emotional connection to being the leader. With this transition, there are opportunities for you to reinvent yourself. What follows is how to start navigating the many emotions that come with this transition.
Acknowledging the Sense of Loss
Throughout the transition, it’s natural for outgoing leaders to experience feelings of sadness, grief, or longing. These emotions stem from the shifting dynamics of one’s personal and professional life. The sense of loss can be strong as the leader confronts the reality of no longer being at the centre of decision-making and the organization’s day-to-day operations.
Acknowledging and validating these feelings is an essential first step in processing the transition. Leaders must recognize that these emotions are normal and valid. For many clients we’ve worked with, it is common to experience a sense of loss during this time. Engaging in open and honest conversations with family members and trusted confidants, seeking the guidance of a professional coach or therapist, and practicing mindfulness and self-reflection can all be effective strategies for accepting and managing these emotions while building the resilience necessary for navigating the transition.
Confronting Uncertainty and Identity Shifts
An unsettling, sense of uncertainty can accompany stepping down from a key leadership position in a family business. Questions about your new identity and purpose outside of the business context often arise—Who am I without my leadership title? What will my new role be within the organization? Within the family? How will I find meaning and purpose in this new chapter of my life? Confronting this uncertainty requires an open willingness to explore new avenues for personal growth and fulfillment.
This may involve pursuing long-held passions, engaging in philanthropic endeavours, or seeking new challenges and learning opportunities. It may also require reframing your identity, recognizing that leadership skills and experiences can be applied in new and meaningful ways beyond the organization. Embracing change and viewing the transition as an opportunity for self-discovery is often an empowering side effect when leaving the family business leadership role.
The Importance of Self-Care and Support
Navigating the emotional complexities of leadership transition requires a strong foundation of self-care and support. Leaders must prioritize their physical, mental, and emotional well-being during this time, as the stress and uncertainty of the transition can take a toll. This may involve establishing new routines and habits that promote resilience, such as regular exercise, mindfulness practices, and time for reflection and relaxation.
Equally important is the need for a support system. Leaders should surround themselves with trusted advisors, mentors, and peers who can offer guidance, empathy, and encouragement throughout the transition process. Joining peer groups or mentorship programs specifically designed for leaders in transition can provide valuable insights and a sense of community during this transformative period.
The period of leadership transition is a complex and emotionally charged process for family business owners. There tends to be a lack of clear roles or positions for former leaders, and the societal pressures and expectations surrounding the transition can be daunting. The term “retirement” itself, with its connotations of being put out of service, can be problematic as it relates to one’s sense of identity and purpose. However, by viewing the transition as an ongoing journey of personal and professional growth, leaders can embrace the challenges and opportunities of their “third act” with resilience and purpose.
Beacon Family Office at
Assante Financial Management Ltd.
Suite 519, 10333 Southport Road S.W.,
Calgary, AB T2W 3X6
