Proposed Family Business Leadership Transition Strategy At Pt Sma
252
CERDIKA : Journal Scientific Indonesia, Januari 2025, 5 (1), 252-271
p-ISSN: 2774-6291 e-ISSN: 2774-6534
Available on line at http://cerdika.publikasiindonesia.id/index.php/cerdika/index
PROPOSED FAMILY BUSINESS LEADERSHIP TRANSITION
STRATEGY AT PT SMA
Liana Aripin
Institut Teknologi Bandung, indonesia
deboralianaaripin@gmail.com
Abstract
Effective leadership transitions are critical to the continuity and stability of family
businesses, especially during generational shifts, which often bring significant challenges
in conflict management. PT SMA, a family-owned food manufacturer, recently
experienced a leadership change from the founder to a younger, less experienced leader.
This transition caused conflict among stakeholders due to inadequate succession planning
and differing perspectives across generations. This study examines strategies to address
these conflicts and challenges at PT SMA. Key conflict points identified during leadership
transitions include adjustments in leadership style and strategic vision, which can have a
negative impact on organizational performance. This study proposes a structured approach
to effective conflict management, emphasizing the development of a clear succession plan,
facilitating conflict resolution, aligning organizational culture, and effective change
management. By implementing these strategies, PT SMA aims to achieve a smoother
transition, minimize conflict, and promote organizational stability. The findings will
provide valuable insights for PT SMA and similar family businesses on the success of
transition management and its impact on continued success. This study highlights the need
to address challenges such as employee turnover and strategic disagreements, which can
lead to dissatisfaction among long-term employees. Ultimately, effective conflict
management is critical for new leaders to navigate these challenges and ensure a successful
leadership transition. focus and advise on effective change management.
Keywords: Generational shift, conflict management, leadership transition, family
business, inadequate succession planning
*Corresponding Author: Liana Aripin
E-mail: [email protected]
Introduction
Business family play role important in global economy, providing significant
contribution to creation field work, innovation, and formation riches.Birdthistle &
Hales, (2023) highlight that company family donate substantial proportion to global
GDP, which shows importance they in a way economy. Although contribution its
economy big, business family often face challenge unique originating from from
intersection dynamics family and operations business. One of the the most significant
challenges is transition leadership, a process that can determine sustainability term
long from companies this (Lambrecht & Lievens, 2008).
Transition leadership in business family No just problem pointing successor ;
this involving management connection complicated family, coping difference
Proposed Family Business Leadership Transition Strategy At Pt Sma
253
generation, and ensure harmony between objective family and business .Alderson,
(2015) emphasize importance management effective conflict during succession For
reduce potential dispute and maintain stability organization. Complexity transition
leadership the more exacerbated by global trends such as increasing diversity in
structure family, progress rapid technology, and market dynamics that continue to
develop (Caputo et al., 2018).
Urgency For handle transition leadership in business family emphasized by
worrying statistics about sustainability business. Studies show that only 30% of
business the surviving family until generation second, and only 12% achieved
generation third (Morris et al., 1997). Numbers This highlight need urge will planning
strong succession and development strategy leadership. Rothwell (2010) emphasized
that planning effective succession No only ensure continuity leadership but also build
resilience and adaptability organization.
Review literature disclose the more the amount study about factors that
influence success transition leadership in business family. Themes main covering role
culture organization (Cameron & Quinn, 2011) impact gap communication
(Morrison, 2011), and its importance development leader generation next (Miller,
2014). De Massis, Frattini, and Light (2016) argue that that transparent and consistent
communication is essential For manage expectations and building trust between
stakeholders interest during the transition process. In addition, the construction of "
familiness ", as defined by Le Breton-Miller and Miller (2015), highlighting source
power and ability unique that appears from overlap overlap system family and
business, which can utilized For facilitate successful transition.
Although there is outlook this, still There is gap in understanding about method
overcome challenge specific like conflict between generations and diversity culture
in business family. Gavrić & Braje, (2024) take notes that management diversity
culture is very important in an increasingly global economy, because in a way direct
influence performance team and results organization. Likewise, Moreno-G & Gallizo,
(2021) emphasize importance recognize and overcome difference generation For
increase profitability and sustainability business.
Based on findings this, research This aiming For propose a transition strategy
leadership in business family, with focus specifically at PT SMA. Research This make
an effort integrate outlook theoretical with solution practical For overcome challenge
unique challenges faced by organizations this. With adopt approach qualitative, as
recommended by Naeem et al. (2023), studies This will develop a conceptual model
that includes practice best in planning succession, management conflict, and
development leadership.
Proposed strategy will use framework mark compete (Cameron & Quinn, 2011)
For align culture organization with objective leadership. In addition, research This
will explore role mentoring and feedback mechanisms turning, as highlighted by
Gilley, Gilley, and McMillan (2009), in prepare leader generation next. With handle
conflict tasks and relationships, as described by (De D & Weingart, 2003), research
This aiming For facilitating a harmonious transition process that balances priority
family and business.
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As conclusion, research This aiming For give contribution to the literature about
transition leadership business family with overcome existing gaps and offers
recommendation customized practical with PT SMA context. With integrate outlook
from various discipline knowledge and use attribute unique business family, research
This aiming For increase sustainability and resilience entity this vital economy.
RESEARCH METHODS
Types of research
This study uses a qualitative descriptive research method. This method was
chosen to explore the phenomenon of leadership transition in PT SMA, including
conflict, generational differences, and challenges in succession planning.
Research Approach
A qualitative approach was used to gain an in-depth understanding of
stakeholders’ experiences of leadership transitions. This approach allowed for
exploration of the social and cultural contexts that influence the success of transitions.
Population and Sample
The research population includes all employees of PT SMA, especially those
who have experienced a leadership transition from the previous leader to the new
leader. The sample was selected purposively, involving new leaders, managers, and
employees from various levels relevant to the research.
Method of collecting data
Interview
In essence, defining problem research and describing the research design or plan
is the first step in the responsibility of data collection. In other words, the importance
of data collection stems from the fact that research cannot be conducted without
obtaining the specific information needed (Syeda, 2021). Interviews are very
appropriate for using qualitative research to address conflict management issues
resulting from leadership change. In addition, primary data consists of information
that is collected for the first time, which is fresh and original, as opposed to secondary
data, which consists of information that has been collected by other parties.
Primary Data
Information In-depth and direct information about personal experiences and
perspectives on conflict resolution during leadership change can be obtained through
interviews. They help to learn about personal experiences and learn more about how
shifts affect conflict and conflict resolution techniques. Semi-structured interviews
with key stakeholders and new leaders will be the method used during the interviews.
Also, utilize open-ended questions to promote thorough answers and facilitate the
investigation of surprising themes. Here are some of the questions asked by the
researchers in collect primary data
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Table 1. Interview Questions For New Leaders
No
1
2
3
4
5
6
7
8
9
Table 2. Questions Interview For Employee
No
Question
1
What are your expectations regarding the organization's approach to succession
planning?
2
From your perspective, what challenges do you face within the existing succession
planning framework?
3
Have you witnessed conflicts arising from these leadership changes? If so, how
were they managed?
4
What approaches do you think can facilitate the resolution of long-standing
conflicts and foster a harmonious team atmosphere?
5
Do you think the previous leader had a clear succession plan? Explain.
6
To what extent do you think you are aware of your organization's efforts to plan
for succession?
7
What suggestions do you have for improving communication to ensure all voices
are heard in the succession planning process?
8
How do you think different generations of organizations respond to leadership
changes in companies?
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9
In your opinion, what practices should be implemented to ensure a successful
transition?
Secondary Data
Study this also includes examination of secondary data including related news
articles, scientific journals, and other relevant information to support more relevant
and in-depth exploration of the material.
RESULTS AND DISCUSSION
Analysis Comparative Findings Interview
Before explain and analyze each further conflict, it is necessary to know,
understand, and summarize each interviewee 's point of view. Below is attached a
comparative analysis of the interviewees.
Table 3. Overview Analysis Comparative Interviewees
Aspect
Employee 1
(Finance
Manager)
Employee 2
(Accounting
Staff)
Employee 3
(Production
Manager)
Summary
Succession
planning
Propose
organized,
open or
transparent
procedures.
offers
possibilities for
professional
growth and
mentoring.
places a strong
emphasis on
being proactive
in
communicating
changes
sequentially.
There is
agreement that
there is a lack of
clear succession
planning, but
there are
differing
opinions on how
to make it
better.
Generation
Challenge
observing
opposition to
younger
leaders from
senior staff /
Observing
skepticism
regarding the
abilities of
younger
leaders ,
which leads
to
changeover .
highlights the
difficulties
middle-aged
employees
experience in
adjusting to
new
management
styles and new
regulations
especially
those coming
from the older
generation.
found that mid-
career
employees were
uncertain, but
younger staff
were more
enthusiastic and
flexible.
Everyone
interviewed
acknowledged
that the
generation gap
poses serious
problems,
especially in
terms of
leadership styles
and
communication
preferences.
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Communication
gap
Prefer
frequent
updates to
help the
succession
plan gain
credibility.
Suggesting
understanding
and mentoring
as a means to
bridge the
generation gap.
Encourage
regular team
meetings to
improve
communication.
Everyone agrees
that
communication
is a big deal;
ideas include
team meetings,
coaching, and
frequent
updates.
In general, everyone raised the same points, such as the need for succession
planning, communication difficulties, and generational gaps. For example, in the
aspect of generational challenges, all interviewees discussed and considered the
differences between younger staff and older generation employees. Although each
discussed slightly different aspects of each issue, representing their own perspectives
and positions within the company, they essentially made the same points.
Leadership transition challenges
Studies on family business leadership transitions show a complex range of
choices and challenges, reflecting the change from one generation to the next, which
is usually the son or daughter of the previous leader. This process requires a
combination of inadequate planning, communication gaps and the generation gap that
occurs during the transition. This section begins with a brief table summarizing the
key points and difficulties associated with family business succession. It draws
attention to a number of challenges posed by generational change, such as
communication barriers and generational gaps. These difficulties are grouped
together with possible improvements. A comprehensive study that provides a detailed
explanation of each aspect of the succession process and solutions to fill gap must
done.
Planning succession that is not adequate
Table 4. General overview about planning succession that is not adequate
Challenge
Problems and Characteristics
Proposed Solution
(By researcher)
Lack of clear succession
planning / inadequate
succession planning
-Founders are not aware of
succession planning
-Uncertainty of successors
regarding leadership roles and
responsibilities
-Ambiguity that hinders
decision making
- The need for a succession
planning process
Develop a comprehensive
succession plan that outlines roles
and timelines.
Open communication /
transparency
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Inadequate training and
guidance for successors
-The successor may not have
the skills and experience
required for the job.
-Lack of confidence in decision
making
Create a mentorship program to
help aspiring leaders by offering
them support and guidance.
The need for succession
planning
- Lack of clear communication
- Resistance to change
- Improve communication and
transparency
- Provide training on change
management
The table above shows the challenges and concerns faced primarily by new
leaders of PT SMA followed by the issues and characteristics and suggested solutions
made by the researcher to them. A more comprehensive inadequate succession is
provided below:
a. Lack of planning clear succession
Lack of a clear succession plan often has a negative impact on organizational
stability and leadership during leadership transitions. Effective decision-making can
be hampered by ambiguity over leadership roles caused by the lack of a clear
succession plan. This is because the previous leader did not realize the importance of
succession planning and was late in preparing the succession plan. As a result, this
affects potential successors who feel unclear about their responsibilities and
authorities as a result of this uncertainty, which creates problems in the organization
especially employee morale. In addition, this effect causes employees to be unaware
of sudden changes and causes employee resistance. Workers can have a sense of loss
or insecurity because they worry that the future of the company is unclear if there is
no experienced leader. There is still no trust between employees and the new leader.
The problem can be worse if the new leader is inexperienced or unfamiliar with the
company's operations and culture.
Given these difficulties, it is critical that family businesses give top priority to
creating a comprehensive succession plan. According to Lambrecht and Lievens
(2008), family businesses can increase their resilience, ensure continuity, and
preserve a strong organizational culture that fosters long-term success by proactively
developing a succession plan. clear succession.
b.Inadequate training and guidance for successors
Inadequate training and mentoring for successors is a significant problem in
family businesses, such as PT SMA, which can significantly hinder the success of a
leadership transition. Successors may feel overworked and unprepared for the
demands of running a business as a result of this lack of planning. Without a
structured training program, successors may struggle to gain confidence in their
decision-making abilities.
With the help of a solid mentoring relationship, successors can gain a deeper
understanding of the company's history, values, and operational difficulties. When
experienced leaders actively coach their successors, they foster a culture of
information exchange and facilitate a smoother transfer. fluent (Sharma et al., 2003).
To address these challenges, family businesses must prioritize implementing
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comprehensive training and mentoring programs. Companies can provide a sense of
accountability and ownership to their successors by supporting their training,
empowering them to take on leadership roles, and leadership with guarantee.
c.Necessity planning succession
Of all these challenges, it illustrates that a smooth transition and the least
operational changes are made possible by effective succession planning, which
ensures that the business is prepared for unexpected leadership changes. In this case,
the younger leader taking over the position may not have the same background and
familiarity with the company as the outgoing leader. Employees may become
confused and unstable as a result of the sudden change in leadership style, priorities,
and expectations if there is no clear succession plan. In addition to identifying
potential future leaders, a clear succession plan defines the education and training
needed to prepare them for their positions, promoting stability and consistency during
the transition.
Employees feel more secure and committed to the organization when they see
that a proactive plan for leadership change is in place. Employees may feel uncertain
about the direction of the company and their responsibilities within it after a sudden
loss, so this sense of security is critical. According to research by Rothwell (2010),
succession planning helps businesses develop a pipeline of leaders who share their
vision and goals. It also strengthens the overall talent management strategy and helps
ensure leadership continuity.
The Gap generation
Table 5. Overview gap generations and succession strategies
Challenge
Problems and characteristics
Proposed solution
Different in leadership
and management style
- The founders preferred a more
traditional style.
-more into collaborative and
participatory decision making
-The founders are more into
hierarchical and authoritative style.
-Different points of view between
the older and younger generations
- Leadership and management training
(Employee recommendation 3)
- Promote a culture of flexibility and
adaptability (Researcher Recommendation)
-Cross-generational mentoring program
(Employee 2 recommendation)
Different in values
and priorities
-Founders may be more focused on
short-term profitability
-Successor more into long-term
sustainability
-Founders prefer formal and
structured communication
-successors seek more feedback and
collaborative communication
- Establish Clear Organizational Values
(Researcher Recommendations)
-Implementing Flexible Work Policies
(Researcher's recommendation)
-Encourage open feedback
(Researcher recommendation)
Resistance to change
- Established leaders are more into
stability and risk avoidance
-Successors are more likely to
embrace innovation and risk
- Promote open communication between
older and younger leaders (Employee
recommendation 3)
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-Established leaders tend to use
traditional methods
-successors are often more open to
innovation
-Involve all generations in the change
process (Employee Recommendation 1)
Disagreement over
resource allocation
-Older generations prioritize
financial stability and conservative
investing.
-Younger leaders can advocate for
more aggressive investment in
innovation and technology.
- Set clear strategic goals that reflect the
interests of older and younger leaders
(Researcher Recommendation)
- Transparency in decision making
(Researcher Recommendation)
Mismatch between
expectations and
desires
- Different leadership aspirations
- Different views on business growth
and risk
-need for open communication and
alignment of goals
- Facilitate open dialogue or discussion
(employee recommendation 2)
- Establish clear role definitions (employee
recommendation 1)
- Implement flexible policies
(Researcher recommendation)
The table above shows the challenges and concerns regarding the generation
gap between previous leaders and new leaders and also between new leaders and
older generation employees followed by the problems and characteristics and
suggested solutions made by researchers and employees towards it. A more
comprehensive inadequate succession is provided below:
c.Different in style leadership and management
In family business leadership, generational gaps often emerge as significant
variations in management and leadership approaches. Traditional, hierarchical
methods that prioritize authority, structure, and established protocols are generally
preferred by the older generation. This approach uses tried-and-true techniques to
direct operations and decision-making, placing a high value on stability and risk
avoidance. Such authoritative leadership can enhance a sense of stability and control,
but it can also stifle creativity and limit the contributions of younger team members
who are willing to share their thoughts and perspectives, according to research by
Sharma et al. (2003).
Younger leaders, including current PT SMA leaders, on the other hand,
typically favor an inclusive and cooperative management approach. They often value
honest communication, adaptability, and flexibility in an effort to foster a space
where everyone’s opinions are heard. Younger generations place a greater priority
on work-life balance, transparency, and clear goals in their work, which is indicative
of broader shifts in society (Chua et al., 2012). However, these differing approaches
can lead to miscommunication and conflict within leadership groups as younger
leaders may feel constrained by the strict demands of their predecessors, and view
the former leader’s strategies as outdated or too restrictive, while those in the older
generation in the company may view the younger leader’s methods as too informal
or unstructured.
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Employee engagement and decision-making procedures can be affected by
these variations in leadership philosophy. For example, a younger leader may place
more emphasis on innovation and market adaptation, whereas the previous leader
would have prioritized long-term stability and risk avoidance. Employees may
become confused as a result of these changing priorities, unsure of the company’s
strategic direction and their place within it. Building an environment of mutual
respect and open communication is essential to closing this gap and motivating
leaders of all ages to exchange ideas and collaborate on strategic choices.
d.Different in values and priorities
In family businesses, generational gaps often reveal stark differences in goals
and values, which affect how each generation approaches work and makes decisions.
Older generations tend to value long-term relationships and the continuation of
family traditions, and they place a higher value on stability, loyalty, and a strong
work ethic. Focusing on these habits can lead to an inoffensive corporate strategy
that prioritizes risk avoidance and maintaining time-honored traditions. In contrast,
younger generations value creativity, flexibility, and social responsibility. They place
a high value on corporate culture and collaboration. Younger leaders are more likely
to push for change, emphasizing the importance of aligning the company’s operations
with current moral principles and environmental goals. These shifting values can lead
to conflict in family businesses because younger leaders may view the older
generation’s emphasis on tradition as an obstacle to progress, while older leaders may
view the younger leader’s priorities as reckless or at odds with the company’s core
values. Additionally, employees may find themselves torn between new and
traditional leadership approaches. Tensions can arise if the successor’s push for
collaboration is met with resistance from those who benefited from the first-
generation leader’s aggressive style.
Family businesses must foster an atmosphere that promotes honest
communication across generations to address this gap. Bridging the gap and
promoting a shared vision of the future can be achieved by facilitating conversations
about values and priorities. A more integrated approach to business decisions can
result from holding strategic planning meetings that take into account the
perspectives of all view second generation.
e.Resistance to change
Problem main with family businesses are resistant to change, which is often
exacerbated by the age gap in leadership. Prioritizing stability and avoiding risk,
older generations tend to show a strong allegiance to tradition and traditional values.
This can result in a reluctance to embrace new approaches or new technologies
promoted by younger executives. Younger generations, on the other hand, tend to
embrace change and be risk takers because they believe it is necessary to stay
relevant. Their focus is on adaptability and creativity, advocating for modifications
that are in line with contemporary company procedures and customer demands.
Because they see a younger leader’s new ideas or methods as unnecessary
interruptions to tried and true methods, older generation people may be hesitant to
adopt them. This reluctance may be due to fear of the unknown because routines offer
security and comfort. As such, employees may resist the new leader’s plans, making
it difficult to make the necessary adjustments. According to research by Le Breton-
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Miller and Miller (2015), overcoming resistance to change requires cultivating a
culture of collaboration and open communication across generations. Family
businesses can better manage the challenges of change and harness the capabilities
of each generation by encouraging communication and involving both generations in
the decision-making process. decision.
f.Disagreement about allocation resource
Family businesses often experience disagreements about resource allocation
due to generational differences in leadership priorities and perspectives. Older
generations typically focus their resources on preserving the family legacy and
running established businesses. This cautious attitude is a reflection of their
experience building companies in unpredictable times when having a stable financial
future was critical. Younger executives, on the other hand, are typically more willing
to invest in technology, innovation, and untapped markets. This push for
development and flexibility can cause problems because younger executives may
view older leaders’ reluctance to fund new projects as a barrier to progress. On the
other hand, employees may also become unclear and confused about the company’s
priorities as a result of disagreements about resource allocation as well as between
proposed new strategies and the old ways they are used to.
Involving both generations in discussions about resource allocation and
promoting transparency can help family firms better align their strategic goals,
according to research by Lambrecht and Lievens (2008). This cooperative strategy
not only helps close the generation gap but also leverages superiority every
generation.
g.Incompatibility between hopes and desires
Leadership and organizational cohesion may be severely hampered in family
businesses by misalignment of generational expectations and goals. In terms of work
ethic, commitment, and following established procedures, older generations often
have traditional expectations. On the other hand, innovative ideas, flexibility, and a
better work-life balance are often desired by younger generations. They may want to
be involved in decision-making and seek arrangements that promote their goals for
career advancement and personal fulfillment.
In addition, this age gap also affects the company's anticipated goals for the
future. Older employees may prioritize maintaining the company's profitability and
legacy, while younger leaders often encourage innovation and flexibility in
responding to changing market conditions. To address this mismatch, Chua et al.
(2012) emphasize the importance of cultivating a culture of collaboration and mutual
respect. By promoting honest discussions that allow both generations to express their
goals and aspirations they.
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The Gap communication
Table 6. Review gap communication and succession strategy
Challenge
Problems and
Characteristics
Proposed solution
Lack of knowledge and
alignment on employee
issues
- Differences in HR
management strategies
- Misinterpretation of
employee needs
- Inconsistent messages
- First generation top-down
approach and next generation
interactive communication
- Clear communication
channels or regular cross-
generational discussions
(Researcher recommendation)
- Open communication
(Employee 2 & 3
recommendations)
Miscommunication as a
result of different
expectations and
communication styles
- Older generations prefer
formal communication
- The younger generation
prefers informal/direct
interactions
- Challenges in knowledge
transfer
- Implement cross-generational
training (Researcher
recommendation)
- Cultivate a culture of open
communication (Employee
Recommendations 2 & 3)
- Overcoming differences in
communication styles
(Researcher
Recommendations)
Uncertain expectations and
poor feedback processes
- Ambiguity in task execution
methods
- inadequate or no feedback
from generation First
- Building clear communication
(Researcher Recommendation)
- Strong feedback mechanism
(Researcher recommendation)
Gaps in the methods used to
resolve conflicts
- The older generation prefers
a formal and structured
approach. For resolution
conflict
- Younger generations may
prefer more informal, direct
discussions that focus on
collaboration.
- Older generations rely more
on indirect communication
- Create a unified framework or
procedure for resolving
conflicts. (Researcher
recommendation)
- Promote clear lines of
communication (researcher
recommendation)
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- Younger leaders can choose
the straightforward one
The need to understand
different points of view and
overcome communication
gaps
- Younger leaders need to
make more effort to
understand and respect the
perspectives of older
generations.
- Creating credibility and trust
in intergenerational
communication
- Adapt and understand diverse
communication styles
(Researcher Recommendation)
- Harmonious relationships
between generations
(Researcher Recommendation)
In this communication gap table runs the challenges and problems that come
due to communication between new leaders and employees as well as the result of
different generations followed by the proposed solutions from the researcher.
h. Lack of knowledge and harmony about employee issues
The effectiveness of family business leadership can be seriously compromised by a
lack of understanding and agreement with staff concerns caused by communication gaps.
Leaders may make inaccurate assumptions when they lack knowledge of the particular issues
facing employees. For example, older leaders may prioritize operational effectiveness while
ignoring the needs of younger employees for flexibility and work-life balance. Employee
dissatisfaction and disengagement can arise from policies that do not take their needs into
account.
Additionally, when there is no cohesive strategy for employee grievances, staff
members may feel more alone because they believe their opinions are not valued. Employees
may be reluctant to voice their concerns without a regular feedback system and clear
communication routes, which can leave issues unresolved and further strain management-
staff relationships. According to research by Chua et al. (2012), creating an inclusive
workplace culture that promotes open communication is critical to closing the generational
knowledge gap.
i. Miscommunication as consequence from different expectations and communication
styles In family business leadership, misunderstandings caused by different
expectations and communication styles are common and can lead to disagreements
and inefficiencies. Younger leaders tend to prefer more direct and informal
communication methods, such as instant messaging and open conversations, while
older leaders tend to prefer a more formal communication style, depending on
established procedures and planned meetings. Since messages may be understood
differently depending on the perspective of the recipient generation, these differences
can cause confusion for employees. On the other hand, differences in communication
styles between the first and second generations can also cause conflict between them
and they hesitate to make decisions.
Additionally, differing expectations of dispute resolution and feedback can
exacerbate this communication gap. Younger workers will want instant, informal
feedback, while older generations may anticipate structured, formal feedback
meetings. This can lead to resentment and feelings of underestimation among
younger leaders when these expectations are not met. Lack of knowledge about these
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different communication styles and expectations can hinder productive teamwork
and hurt overall organizational performance, as noted by Chua et al. (2012). Clear,
open, and transparent communication is therefore essential to resolving and
addressing employee expectations.
j.Unmet expectations sure and bad feedback process
Family business leadership communication gaps can be greatly exacerbated by
unclear expectations and poor feedback systems. In the absence of clear expectations
for roles, tasks, and performance indicators, employees may find it difficult to
understand their responsibilities. Due to uncertainty about their contribution to the
company, people may become confused and less motivated as a result of this
ambiguity. De Massis et al. (2016) found that unclear expectations can lead to
misaligned goals, which further compromises team dynamics and productivity.
In addition, the procedure Poor feedback exacerbates this problem because
workers cannot get the direction they need to advance or align themselves with
company goals. Employee engagement may suffer and they may feel disconnected
from leadership if they receive feedback that is too formal, ambiguous, or infrequent.
Chua et al. (2012) suggest that this lack of constructive criticism can hinder
professional and personal growth, leaving workers feeling neglected and
underappreciated. New leaders can close this gap and create a more engaged and
cohesive team during the transition by setting up clear feedback systems and
communication routes that engage for all generation.
k.Gap in methods used to resolve conflicts
When a family business experiences a change in leadership, differences in
conflict resolution techniques can present serious challenges. Conflict and
miscommunication may arise because different generations often approach conflict
resolution differently. For example, younger leaders may favor informal,
collaborative tactics, while older leaders may favor formal, structured procedures.
These differing communication styles can hinder productive discourse during
disagreements, leaving issues unresolved and possibly damaging relationships. Such
generational differences in conflict resolution techniques can hamper the entire
transition process, reducing team cohesion and impacting organizational
performance.
In addition, during times of transition, these differences can make it difficult to
create a cohesive workplace. Employees may become skeptical and resistant to new
ideas if they believe the younger leader’s strategies are inadequate or unprofessional.
On the other hand, communication gaps that hinder collaboration can arise from the
younger leader’s inability to understand the ingrained expectations of the older staff.
Therefore, as Chua et al. (2012) point out, it is important to encourage a culture of
understanding and adaptability in conflict resolution techniques to improve
collaboration and communication. It is important to implement training sessions that
highlight the benefits of different strategies and encourage open discussion. about
resolution conflict .
l . The need for understand corner different perspectives and bridging communication
gaps This is the bottom line that understanding different perspectives is critical to
addressing the communication gaps that occur during the succession process in family
business leadership transitions. New leaders can better navigate the challenges of this
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Proposed Family Business Leadership Transition Strategy At Pt Sma
266
transition by having a thorough understanding of the perspectives of the workforce,
especially those who may have worked for the former leader for a long time. Older workers
may resist new ideas or methods because they have deep attachments to the vision and
management style of the past leader. Maintaining morale during difficult times requires new
leaders to build trust, validate employee views, and foster a sense of inclusion by actively
engaging with diverse perspectives through open dialogue and listening sessions.
It is equally important to bridge the communication gap that often occurs during such
transitions. While younger leaders tend to prefer a more relaxed and collaborative approach,
new leaders must address the communication style gap, as older generations may prefer more
formal interactions. Everyone can feel heard and valued by creating open lines of
communication and welcoming criticism. Organizations will also have a more unified path
when a clear vision is communicated and aligned with the hopes and concerns of the
workforce. Embracing other perspectives not only reduces miscommunication but also
strengthens organizational resilience, enabling businesses to successfully navigate this
critical transition, as noted by Lichtenstein and D’Aunno (2021).
1. Proposed Solution Summary
There are many proposed solutions mentioned above, in order to provide a more
efficient method to address succession planning, generation gaps, communication
breakdowns, and leadership disputes within the company, this section compiles the proposed
solutions and combines comparable solutions.
Table 7. Summary of Proposed Solutions
Challenge
Proposed Solution
Description
Succession planning
Structured Planning
Providing clear succession
planning including the
obvious
roles and responsibilities for
successor to ensure
smooth transition.
Mentoring and Training
Program
Forming mentors and
Training for successors
especially in his role
and to gain the confidence to
lead
and the skills needed to
become
a leader in the company.
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Proactive Communication
Make regular updates and
awareness to employees
About Succession Planning
and who will be the next
leaders to reduce
uncertainty.
Generation
Difference
Cross Generation Training
Providing training to
promote
Awareness and
understanding
from various
communications
and management style.
Encourage Collaboration and
Freedom
Leaders motivate groups
decision making and
Adaptable leadership
techniques, such as
guidance throughout
Generation.
Aligning Organizational Values
and Goals
Establish and share common
ground
ideals that achieve balance
Between Short Term Goals
and long-term survival.
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The Gap
communication
Open and Inclusive
Communication
Channel
Create a regular channel for
communication, like a team
Meetings and feedback
sessions, to promote
openness, inclusiveness, and
clarity of hope.
Adjust Communication Style
Urging leaders to balance
formal and informal
Communication approaches
in
according to generation
preference.
Business Solutions
In addressing the leadership transition challenges highlighted in this study, it is
important to structure the proposed solutions into broad areas. This will keep
redundancy to a minimum and will be easier to implement, mainstreaming the
solutions into resource management and operational efficiency. Therefore, all
proposed solutions fall into five areas of interest: Leadership Development and
Training, Generational Collaboration and Adaptability, Optimizing
Communications, Strategic Succession Planning, and Value Alignment and Cultural
Cohesion.
Table 8. Business solutions
Group
Proposed Solution
Description
Leadership
Development and
Training
- Integrated Training
Program: Comprehensive
guidance in mentoring and
leadership.
- Focus on Succession
Preparedness: Methodical
instructions align with
succession planning
objectives.
Develop confidence and
leadership skills while equipping
successors with the resources
they need for a smooth transition.
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Collaboration and
Adaptability of
Generations
- Cross-Generation Program:
Mentoring and training to
close the generation gap.
- Leadership flexibility
includes cooperative
decision making and
flexible workplace rules.
To enhance cooperation and
decision-making, promote
intergenerational understanding
and adaptability.
Communication
Optimization
- Unified Communication
Channel: a standard and
inclusive channel for
frequent updates.
- Feedback mechanisms: easy
to understand, clear and
accessible.
Ensure that communication flows
easily, takes into account
generational variations, and
encourages participation and
transparency.
Strategic
Succession
Planning
- Open/transparent process
development: Clearly
defined roles, tasks and
deadlines.
- Integrating conflict
management: Handling
resistance and increasing
trust during change.
To build trust and reduce
disruption, proactively manage
succession using integrated
conflict resolution techniques and
organized planning.
Alignment of
Values and Cultural
Cohesion
- Establish shared values,
such as long-term plans and
company goals.
- Develop a collaborative
vision that aligns staff
expectations with new
leadership.
By uniting leaders and employees
around shared values and goals,
you can foster a unified company
culture that will support long-
term success.
The company faced challenges due to the lack of clear succession planning,
which had caused uncertainty and affected morale. Generational differences in
values, work styles, and communication preferences had created resistance to change
and misunderstandings, reducing team cohesion. Leadership transitions also caused
conflict, with the new leader’s approach leading to skepticism and decreased trust.
All of these conflicts led to the five areas of interest of the proposed solutions and to
the point where conflict management strategies played a vital role for the above
proposed solution categories to run smoothly.
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270
CONCLUSION
Study This highlight issue critical related transition leadership in business family,
especially challenges that arise consequence planning succession that is not adequate,
gap communication, and differences generation. Findings show that transition
effective leadership need plan clear succession, mentoring and training programs for
successor, and communication open involving all over stakeholders interests. Lack of
planning succession cause uncertainty role successors and lower employee morale,
while gap generation create difference value, style communication, and priorities that
worsen conflict. In the context of this, management effective conflict become element
important For create harmonious and inclusive transition. Recommendation study
This covers development plan structured succession, improvement collaboration
between generation, and implementation channel inclusive communication. With By
integrating these strategies, PT SMA can increase stability organization,
strengthening cohesion team, and ensure sustainability business in term long.
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