SERIES: Passing the Baton

By Becca Anderson

Do you want to hand over your company to your child or children one day? What should you be doing now to be sure the future of both the company and your children is taken into consideration? We talked with Frank Ziermann, owner and managing director of Böwe Textile Cleaning Systems in Germany about how he’s handled this delicate process.

How do you work toward having your children take your place at the head of your company one day?

I think it is very difficult to plan this; it is an ongoing process. Of course, it is the dream of every company owner to have a successor so that all the time, passion, and dedication invested in a company over a lifetime can live on, and the next generation can start from a higher level than was the case 35 years ago.

Start early

Establishing clear guidelines—particularly regarding personal expenses for hobbies, holidays, and pocket money—is fundamental in my opinion. Some parents unintentionally raise their children to be princesses or princes who have no relation to money and work. When children recognize how hard it is to earn $20, they learn to be more mindful about how they spend it. I also think it is very important for children to see from an early age that their parents work to lead the way. Our own children adopted this attitude quite naturally and at an early age.

Who has it harder in a transition, the outgoing leaders or the incoming ones?

For more than 30 years, I’ve been visiting customers and keeping in touch with so many companies. From this experience, I’ve seen many generational transitions in companies that caused businesses and family relationships to fail and fall apart. This is why I never pressured my children to enter this industry.

No parental pressure

Each of my children has a good education: Laura studied in Peru, Manuel in Mexico, and Max in Japan, so they could have chosen to do something else at any time. But it’s also important to work in other companies, not just be the owner’s daughter or son, so they can adapt to different people, colleagues, and management styles.

Today, the kids talk to former schoolmates and fellow students—and not one of the former colleagues is completely satisfied in their role. That’s why I always tell them that they are in the driver’s seat and bear full responsibility, but that they can run the company in whatever way they like. Especially in economically difficult times, such as those we’re currently experiencing in Europe, and mainly in Germany.

How do you choose the roles for your children in your company?

When you have three children, you know that each one is different. It’s important to recognize their individual strengths and to notice whether they are more interested in technical or commercial topics. By watching how they explore these areas and find their own path, you can see where they naturally fit. When they choose a role that matches their interests and abilities, they can add real value to the company.

How much freedom do your children have to change things, and where does maintaining the company’s legacy come in?

Of course, the next generation needs support and advice during the learning period. But only to the extent that they can take the final step on their own. This is how they gain self-confidence and build up know-how. This earns the respect of the employees, customers, and dealers who come to see the next generation not only as the owner’s child, but also recognize the value they bring to the company’s future success. Yet the children must also make their own mistakes in order to grow. Trust is the key.

Looking back, what is one piece of advice you would give to another company preparing for a leadership transition?

Involve the next generation as early as possible. A job during school holidays to earn their own pocket money, or light work on the weekends, is very important. This way, children at least learn what the company does and how business works. Also, talk about everyday problems and, of course, work together to find a good solution. Show the next generation that working in a family business can bring many benefits, such as traveling to trade shows, building wealth, and interacting with so many different people and cultures.

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