Why do almost half of all Swiss family businesses fail when it comes to generational change? Why do employees and management in family-run SMEs often no longer see eye to eye? How do successful family businesses manage to preserve their values across generations while remaining innovative?
These questions are currently preoccupying thousands of Swiss companies. According to the EY Global Family Business Index 2025, around 88 percent of all companies in Switzerland are family businesses. They form the backbone of our economy – from small carpentry workshops in Appenzell to global players such as Roche and Kühne + Nagel.
The challenge here is that family businesses operate according to their own rules. Emotions clash with business decisions, long-standing traditions with digital transformation, and personal relationships with professional structures. Nowhere is this complexity more evident than in corporate communications.
Swiss family businesses combine two worlds that could hardly be more different. The family, with its emotional ties, unspoken rules, and established hierarchies, meets the business world with its rational decision-making processes and clear structures.
This duality shapes every aspect of communication. Business decisions are discussed over lunch, siblings sit side by side on the management board, and the senior boss continues to be involved even after the official handover. What would be unthinkable in other companies is everyday life here.
The strengths of this setup are obvious: short decision-making processes, a high level of commitment, and a strong sense of responsibility characterize the communication culture. When the boss personally walks through the production hall and exchanges a few words with each employee, it creates a bond that no large corporation can achieve.
But it is precisely this closeness that also harbors dangers. Conflicts between family members quickly spill over into the company. Employees often don't know who really calls the shots—the official managing director or the senior boss? And how can you offer constructive criticism when the boss is also your son-in-law?
A recent follow-up study by PwC Switzerland shows that 50 percent of family businesses begin the succession process without a clear structure. The result: uncertainty among employees, customers, and suppliers. This is where the wheat is separated from the chaff—companies with a well-thought-out communication strategy master this phase, while others fail.
Generational change is the litmus test for every family business. The figures speak for themselves: only around 30 percent make the transition to the second generation, and just 10 percent successfully reach the third generation.
Why do so many fail?
One of the main reasons for this is poor communication. The PwC study reveals that a quarter of successors criticize the late start of the handover process. Many companies only take action when acute problems arise. By then, it is often too late for structured communication.
Successful family businesses take a different approach. They begin preparing for the transition years before it actually takes place. Specifically, this means:
Internal communication is systematically established. Managers are involved at an early stage, and employees are informed about changes. It is particularly important to communicate clearly what is changing and what is staying the same. The continuity of corporate values must be evident.
Successful companies communicate change as an opportunity to the outside world. They use generational change to set new agendas and position themselves as modern. The next generation often brings a breath of fresh air—digital expertise, new networks, different leadership approaches. This must be used to communicate effectively.
A real-life example: A medium-sized construction company in the canton of Bern spent three years preparing for the transition from father to daughter. Regular employee briefings, joint visits to customers, and a gradual transfer of communication responsibilities ensured a smooth transition. Today, the daughter is successfully running the company in its third generation.
Internal communication plays a decisive role in determining whether a family business remains successful in the long term. Different rules apply here than in anonymous large corporations.
Transparency is key. Employees in family businesses expect clear information about the company's development. They want to know where the journey is headed—especially in times of change. At the same time, family matters must be clearly separated from business issues.
The challenge lies in creating professional structures without destroying the family atmosphere. Regular team meetings, structured information channels, and clear responsibilities are essential. But personal interaction, a boss who listens, and appreciation for long-standing employees—that's what makes the difference.
Modern tools can help with this without losing the personal touch. An intranet for important information, digital collaboration platforms for projects, regular video updates from management—all of this works in family businesses too. The key is striking the right balance between digital and personal.
According to a PwC study, 30 percent of women surveyed feel disadvantaged in the succession process. This shows that traditional role models must also be questioned in internal communication. All family members in the company should have an equal say, regardless of gender or birth order.
Externally, family businesses have to master a difficult balancing act. On the one hand, customers and partners expect proven values: reliability, quality, personal service. On the other hand, the company must show that it is moving with the times.
The solution lies in authentically combining both elements. Swiss family businesses can leverage their tradition as a strength—especially in times of globalization, when many customers are looking for reliable, local partners. At the same time, they must prove that tradition does not mean stagnation.
This can be achieved through targeted positioning. For example, a mechanical engineering company in eastern Switzerland communicates its 120-year history as a force for innovation: "We have been developing solutions for tomorrow for four generations." Tradition becomes proof of quality, not a burden.
Social media offers new opportunities in this regard. LinkedIn posts by the junior boss about digital transformation, Instagram stories from production, podcast interviews with different generations—all of this makes family businesses both approachable and modern.
Consistency across all channels is important. The website, trade fair presence, business correspondence—the same story must be told everywhere. A story that combines tradition and innovation.
Digitalization is also fundamentally changing communication in family businesses. Suddenly, decision-makers are no longer all sitting around the same table, but are spread across different locations. Younger family members bring new communication habits with them, while the older generation relies on tried-and-tested methods.
This transformation holds enormous potential. Digital tools make it possible to maintain family closeness even across distances. Regular family video calls, digital boards for strategic decisions, shared cloud solutions for important documents—all of this creates transparency and involvement.
But be careful: digitization is not an end in itself. It must fit in with the corporate culture. A traditional wine-growing company in Valais gradually digitized its internal communications. First, the younger employees were trained, and they then passed on their knowledge to their older colleagues. This created acceptance instead of resistance.
External digital communication opens up completely new possibilities. Family businesses can tell their stories authentically, connect directly with customers, and bring their values to life. A bakery in Lucerne shows how bread is made every day on Instagram—from the flour to the finished loaf. Followers experience traditional craftsmanship up close.
Here, too, the strategic approach is crucial. Which channels are suitable for the target group? What resources are available? How can communication remain authentic? These questions must be clarified before embarking on digital activism.
Crises often hit family businesses harder than others. The family name is at stake, personal relationships are strained, and emotional ties make objective decisions difficult.
The COVID-19 pandemic has shown how differently family businesses deal with crises. While some fell into a state of shock, others used the crisis as an opportunity for clear, empathetic communication. They kept employees informed on a daily basis, maintained close contact with customers and suppliers, and demonstrated presence and responsibility.
The recipe for success: preparation and clear structures. Even though no one can predict the next crisis, communication processes can be defined. Who speaks to the outside world? How are employees informed? Which channels do we use? These questions must be clarified in advance.
Internal company crises are particularly sensitive. Conflicts within the family, disagreements about strategic direction, scandals involving individual family members—all of these can quickly become public knowledge. This is where professional support and the courage to speak uncomfortable truths are needed.
A family business in central Switzerland experienced a public dispute between two brothers over the management of the company. Instead of sweeping the conflict under the carpet, they communicated openly about their different visions and the compromise they had reached. Their honesty was appreciated by customers and employees alike.
Our experience with Swiss family businesses has revealed the following success factors:
Define clear roles: Who speaks for what? Responsibility for communication must be clearly defined. This prevents contradictions and creates reliability.
Create professional structures: Regular meetings, defined information channels, documented processes—this may sound bureaucratic, but it creates clarity.
Involve the family: All family members should be informed about important developments. This prevents rumors and strengthens cohesion.
Take advantage of external perspectives: An outside perspective helps to identify blind spots. This can be achieved through advisory boards, consultants, or regular customer feedback.
Remain authentic: Family businesses do not need to communicate like corporations. Their strength lies in their personal touch.
The courage to change: Tradition does not mean standing still. New channels of communication should at least be tested.
Communication in family businesses remains a balancing act between professionalism and personality, between preservation and renewal. But it is precisely this tension that defines the special character that makes Swiss family businesses so successful.
The Swiss economy needs strong family businesses. With 19 representatives among the 500 largest family businesses worldwide, Switzerland shows that this model has a bright future. Together, these companies generate sales of USD 235 billion and employ over half a million people.
But this success is not a sure thing. The challenges are not getting any smaller—digitalization, skills shortages, international competition, changing customer needs. All of this requires new answers, including in communication.
Family businesses that take a strategic approach to communication have the best chance of overcoming these challenges. They leverage their strengths—proximity, reliability, speed—and complement them with modern approaches. They remain authentic while becoming more professional. They preserve their values and at the same time open themselves up to new ideas.
Are you facing the challenge of combining tradition and innovation in your corporate communications? Brand Affairs supports you in developing a tailor-made communications strategy. With our experience in supporting Swiss SMEs and our network of communications experts, we will find the right tone for your family business.
Contact us for a no-obligation consultation. Together, we will develop a communication strategy that suits your company and appeals to both internal and external target groups.
How early should you start communicating about the generational change? Ideally, communication preparations should begin three to five years before the planned change. This gives you enough time to gradually involve all stakeholders and avoid uncertainty. However, communicating too early can also cause unrest—a delicate touch is required here.
How can you separate family and business communication? Clear rules help: business matters are discussed in defined meetings, not at the family dinner table. Different communication channels for family and business create additional clarity. It is important that everyone involved respects and lives by this separation.
Should family businesses use social media? Absolutely, but with a strategy. Social media offers the opportunity to show the personal side of the company. However, clear guidelines should be defined: Who posts what? How do we deal with critical comments? A well-thought-out social media strategy is a must.
How do you deal with conflicts in family communication? Conflicts are part of life; what matters is how you deal with them. External mediation can help to remove emotions from the equation. Clear escalation levels and defined conflict resolution mechanisms prevent personal disputes from paralyzing the company.
What role do external consultants play? External consultants bring neutral perspectives to the table and can act as mediators. Professional support is particularly valuable when it comes to sensitive issues such as succession or strategic decisions. Important: The consultant must be a good fit for the corporate culture.
How do you measure the success of communication in family businesses? Traditional KPIs such as media response or social media reach are not enough. Qualitative factors are more important: employee satisfaction, customer loyalty, smooth internal processes. Regular surveys and open feedback show whether communication is working.
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