Family Constitution
Van Hoof sees two trends contributing to the realization that it’s the younger generation’s turn. “The first is the ESG story of sustainability, societal impact, and good governance. Concepts the older generation may not be entirely familiar with. The same goes for digitization. Think, for example, of the rapid changes in communication, such as social media.”
In practice, there should always be a reason to start thinking about professionalization and family governance, he notes. “It can be a difficult situation, like a death or an accident. But it can also be because more is being talked about, for example, through our Family Business Award. Additionally, the baby boomers are reaching the end of their professional career. This is a potential trigger that will gain importance over the next five years.”
A good example of family governance is the drafting of a family charter. This is a kind of 'constitution' that includes, among other things, the conditions for who may and may not join the company. “Of course, that’s about the elaboration of rules,” says De Ridder, “but it primarily teaches you to talk about sensitive things with each other, something that doesn't necessarily come naturally to Belgians.”
Haspeslagh underscores the importance of these conversations. “During a transition between generations, it’s about what should be preserved from the company’s roots, values, and vision, and what should change. I think the older generation is sometimes afraid that the younger generation wants to change everything too quickly. The younger ones also don’t always express what they appreciate from the past and what they want to preserve. They should talk more about that with each other. Then the older generation can let go more easily, I think.”