Saving Family-Owned Companies – Curse of the next generation

by Finn Majlergaard | 21. Mar, 2025 | Blog

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Many of the companies who have been in business for more than 100 years are family-owned companies and Hoshi Ryokan, Founded in 718 AD, in Japan, Hoshi Ryokan is the oldest continuously operated family business in the world

Most people and the vast majority of the entertainment industry has a positive perception of the family as an entity where the members are engulfed in mutual love and affection. The reality, however, is often very different. Douglas Coupland's book: "All families are psychotic" is worth a read if you need a more balanced view on what families can also be.

Gugin has worked with many family-owned companies over the past 20 years helping them facilitating the cultural change when a new generation is going to take over.

The main challenge in generation change of family-owned companies

The main challenge in generation change of family-owned companies is to secure continuity and introducing change at the same time.

Generation change in family-owned comoanies. How Gugin help facilitate the process

In each of these areas there is a potential for a fight that can damage the relationship in the family and potentially damage the company. It is often very difficult for the older generation to step completely back and let the next generation make the changes they feel necessary to make. The younger generation, however, often continue a strategic path they don't support in order not to upset the older generation.

 

What does Gugin do help reach reconciliation in generation change?

Having an external mediator like Gugin has a lot of advantages. We not only listen to concerns and aspirations from both parties, we also interview people in the organisation to get their perspective on what they would like to see changed with the new incoming generation. Sometimes we also interview suppliers and customers to get a full picture of the company's position.

We use all this information with the talks with the family members. In these talks the older generation often become more open to changes because the changes are not only required by the younger generation bot also by the employees, customers and suppliers.

Similarily, we also help the younger generation reconsider some of the drastic changes they often want to introduce by showing them how important the things they might want to change is to the employees and customers.

Iterative processes is the answer to successful generation change

This is an iterative process, that requires a lot of time both from us and from the family.

It is however our experience that this time is well invested because we get a transition that is accepted by most stakeholders and we avoid the common disaster where many, very valuable employees leave the company because they don't have confidence in the new generation taking over. On the other hand you also need to let people go, who don't support the new direction of the company or who just don't like the new generation. It is always very emotional in family-owned companies, not only within the families, but often in the entire organisation. That is one more reason why it is important to have a company like Gugin on board in the transition process, to infuse some cultural intelligence in the strategy and decision processes.

Emotions are both blessings and curses

Some people say you shouldn't mix feelings and business. In Gugin we don't necessarily agree with that and in family-owned companies it is (fortunately) impossible.

You can't have a successful business without passion, and passion is a feeling. But passion doesn't come from nowhere. Passion is a result of a lot of other feelings playing together. It is dreams, fears, disappointments, aspirations and many more feelings. All these feelings are usually much more explicit in family-owned companies, and that is why a very different leadership style and leadership coaching is required than in a traditional company with external investors and the primary focus on pleasing the investors on an annual basis.

What is next?

Please do get in touch if you have a family-owned business which is about to go through a generation change.

All the legal and financial tasks are easy. It is the cultural change that will make your company either flourish or parish.

 

 

What separates a good leader from one who truly moves people? Research — and decades of cultural intelligence practice — point to one word: charisma. And unlike talent, charisma can be learned.

In 1979, Warner Records refused to send Prince on tour. Not because of his music — they knew he was exceptional — but because he lacked charisma. He couldn't yet move an audience. Fast forward one year, and Prince had transformed himself into one of the most commanding performers in the history of popular music. He didn't wait for charisma to arrive. He worked at it, systematically, studying and adopting the techniques of the performers he admired.

That story is not just about rock and roll. It is a precise metaphor for leadership. At Gugin, we have spent over two decades helping leaders across cultures and industries make exactly this kind of transformation — not by telling them to "be more confident," but by equipping them with concrete, learnable strategies rooted in emotional intelligence, cultural intelligence, and communication science.

 

Why Most Charisma Advice Fails

The most common advice leaders receive about charisma is frustratingly vague: project confidence, be warm, be present. These qualities do matter. But they are nearly impossible to "just do" on command, especially under pressure, across cultures, or in unfamiliar organisational contexts.

Research by Professor John Antonakis and his colleagues at the University of Lausanne Business School has shown that charisma is not a personality trait reserved for the few — it is a set of communicative behaviours that can be identified, taught, and practised. In their studies, randomly selected middle managers who underwent structured charisma training were subsequently rated by peers and subordinates as more charismatic, more competent, and more trustworthy. The training worked.

At Gugin, we have built on this science and gone further — weaving it together with emotional intelligence (EQ) and cultural intelligence (CQ) to create a leadership development approach that is both evidence-based and globally applicable.

The Nine Charismatic Behaviours — And What They Really Require

The Antonakis research identifies nine concrete charismatic leadership tactics: using metaphors and stories, showing moral conviction, expressing shared feelings, setting high expectations, using contrast and rhetorical questions, using lists, and animating communication with body language. These are the building blocks. But building blocks need a foundation — and that foundation is emotional and cultural intelligence.

Take metaphors, for example. A metaphor is only powerful if it resonates with the audience. In Gugin's cross-cultural leadership programmes, leaders quickly discover that a metaphor drawn from American sports culture may fall flat in a team from Northern Europe, and that a story invoking individual heroism may alienate a collectivist audience in East Asia. The charismatic tactic is the same; the cultural calibration is everything.

The same applies to moral conviction. Appealing to shared values is one of the most potent charismatic tools a leader has. But whose values? Which moral frameworks? A leader operating across multiple cultural contexts must understand that concepts like fairness, loyalty, duty, and hierarchy carry profoundly different weight in different cultures. High cultural intelligence — the ability to read, respect, and adapt to cultural difference — is what allows a leader to express genuine moral conviction that actually connects rather than alienates.

Emotional Intelligence: The Inner Architecture of Charisma

Charisma without emotional grounding is performance. It can work in the short term, but it rarely sustains trust. The leaders Gugin works with are taught to understand that emotional intelligence is not a soft supplement to charismatic leadership — it is its inner architecture.

Consider the tactic of expressing shared feelings. Antonakis identifies this as key: when a leader says "I feel the same uncertainty you do, and here is how I am holding it," they build identification and trust. But this requires real self-awareness. Leaders must be able to name and regulate their own emotional states before they can credibly reflect the emotions of others. In Gugin's programmes, we invest significant time in developing exactly this capacity — helping leaders identify their emotional triggers, understand how their inner states broadcast outward, and build the emotional vocabulary needed to communicate with authenticity.

Empathy — a core dimension of emotional intelligence — also directly underpins several charismatic behaviours. Setting high expectations while simultaneously communicating belief in others (another of the Antonakis tactics) requires a leader who genuinely sees the potential in the people around them. That kind of seeing is empathic. It cannot be faked over time. When Prince produced the band The Time for Warner Brothers, he did not simply demand excellence — he made each member believe they were capable of more than they thought. That is emotionally intelligent leadership in action.

Cultural Intelligence: Charisma That Travels

One of the most important — and most overlooked — dimensions of charismatic leadership in today's world is its cultural portability. A leader who is magnetic in one cultural context may be perceived as arrogant, shallow, or inappropriate in another. This is not a flaw in those audiences. It is a signal that charisma, like all communication, is culturally embedded.

Gugin's work in over 60 countries has shown us that the nine charismatic tactics are universal in their structure but must be culturally adapted in their expression. Rhetorical questions, for instance, invite participation and create anticipation — but their delivery must match the power-distance norms of the audience. In high-hierarchy cultures, a rhetorical question from a senior leader may silence a room rather than energise it. In low-hierarchy cultures, it may spark exactly the engagement intended. Cultural intelligence tells the leader which dynamic they are working in, and how to adjust.

Similarly, the use of storytelling — one of the most powerful charismatic tools — varies enormously across cultures in terms of what stories are appropriate, how direct or indirect they should be, and what kinds of protagonists resonate. Gugin teaches leaders to build a culturally diverse repertoire of stories and to develop the sensitivity to know which story belongs in which room.

How Gugin Trains Charismatic Leaders

Gugin's leadership development programmes integrate the science of charismatic communication with structured development in emotional and cultural intelligence. The process is iterative and experiential, not theoretical.

Leaders begin by gaining honest self-awareness: understanding how they are currently perceived, what emotional signals they project under pressure, and how their default communication style reads across cultures. This foundation phase often surfaces important blind spots — the technically brilliant executive who speaks too abstractly to inspire, the empathetic manager whose conflict-avoidance reads as a lack of conviction.

From there, leaders move into skill-building: practising charismatic communication tactics in safe, structured environments with real feedback. They learn to craft metaphors that carry cultural resonance, to tell personal stories that build connection without oversharing, to use contrast and rhetorical structure to sharpen their message. They receive coaching on non-verbal communication — the body language, vocal variety, and presence that Antonakis identifies as essential to bringing charisma alive.

Finally, leaders apply these skills in live contexts, with coaching support, and receive 360-degree feedback that tracks their progress. This mirrors the approach Antonakis found to be effective — group training combined with individual coaching — and embeds it within the broader cultural and emotional intelligence framework that makes the development durable and globally relevant.

Charisma as a Leadership Responsibility

There is a deeper point worth making. Charisma is not about making yourself more impressive. At its best, it is about making others feel seen, energised, and capable of more than they believed. It is about communicating in a way that bridges difference, builds shared purpose, and creates the conditions for people to do their best work.

In a world where leaders must navigate unprecedented complexity — technological disruption, geopolitical volatility, multi-generational and multicultural workforces — the ability to communicate with clarity, conviction, and emotional resonance is not optional. It is a strategic capability.

Prince didn't work on his charisma because he wanted to be famous. He worked on it because he knew, instinctively, that the music mattered — and that without the ability to connect, the music would never reach the people it was meant for.

The same is true of leadership. The work matters. Charisma is what carries it across.

 

About Gugin  |  Gugin is a global advisory firm specialising in cultural and emotional intelligence. We help organisations build the leadership capability to thrive in a complex, multicultural world. Learn more at www.gugin.com

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