Businesses thriving with expertise handovers: pioneering role of skilled employees as successors
In the heart of Southwest Germany, Stuttgart plays host to the economic ministers' conference today and tomorrow. The event, chaired by Baden-Württemberg, brings together key decision-makers to discuss topics relevant to the region's economy.
One such topic is the increasing need for specialists and managers in business succession advisory, leadership transition roles, and strategic succession planning consulting. According to Economic Minister Nicole Hoffmeister-Kraut, this demand arises primarily from the imminent generational change and retirement-driven transitions faced by a significant number of small and medium-sized enterprises (SMEs) and family businesses in Germany.
With around 70,000 businesses, employing about 678,000 people, requiring successors annually, the need for professionals who can support companies early in the succession process is evident. Many owners start considering succession planning very late, often only near retirement.
The demand for specialists extends to roles in leadership transition and governance development within firms preparing for or undergoing succession. For instance, law firms like K&L Gates are currently appointing co-managing partners as part of long-term succession plans, signaling opportunities for experienced managers to step into leadership as predecessors retire.
Moreover, companies are placing a growing emphasis on robust, strategic succession planning, driven by investor expectations and regulatory scrutiny. Boards seek professionals who can help design and implement forward-looking succession processes, including skills matrix-based candidate identification and accountability structures such as appointing lead independent directors.
The need for succession specialists also includes facilitating knowledge transfer and leadership development in complex family-run or SME contexts. Research from Korn Ferry emphasizes the need for thorough knowledge sharing and mentoring to support smooth handovers and continuity, creating opportunities for experienced managers to serve as mentors or transition coaches.
In summary, specialists and managers are sought in roles that provide business succession advisory and support, take on senior management or leadership roles as part of planned succession in companies, develop and implement succession planning frameworks and governance at board or executive levels, and facilitate mentoring, knowledge transfer, and leadership development to ensure effective transitions.
These opportunities arise amid the broader context of widespread personnel cuts, increasing pressure on business continuity, governance expectations, and an aging business owner population in Germany.
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It's worth noting that the southwest is committed to promoting entrepreneurship and improving conditions for founders. With over 54% of company owners in Germany being 55 years and older in 2024, the need for successful succession planning is more crucial than ever.
[1] dpa/lsw, "Opportunities for specialists and managers in business succession," [Date of Publication], URL [2] K&L Gates, "Co-managing partners appointed in long-term succession plan," [Date of Publication], URL [3] Investor expectations and regulatory scrutiny, various sources, URLs [4] Boards and succession planning, various sources, URLs [5] Korn Ferry, "The importance of knowledge sharing and mentoring in business succession," [Date of Publication], URL
- The conference in Stuttgart is discussing the rising demand for succession specialists and managers, particularly in the fields of industry, finance, and business, due to the looming generational change and retirement-driven transitions in small and medium-sized enterprises (SMEs) and family businesses.
- In light of the increasing need for effective succession planning, boards are seeking professionals who can design and implement strategic succession plans, with a focus on robust succession processes, accountability structures, and knowledge transfer in complex family-run or SME contexts.
