At 27, Joy Stephanny Lau faced a pivotal choice in her family’s shipping business. Rather than slotting into an existing position at the company, she proposed opening a new branch in Singapore.
“I didn’t want a preset role or to shadow someone,” says Lau, now Managing Director of Starindo Capricorn Shipping. “Instead, I asked if this expansion could be my own – a separate arm, still tied to the family business, but new.”
Her parents were anxious about her inexperience, but they agreed on the understanding that she would take full responsibility for the success or failure of the venture.
That dilemma – whether to bring the next generation in early or hold them back – is common across family-owned businesses. And these businesses are central to economies: for example, in the UK, they account for most of the private firms and employ millions. Globally, family businesses are estimated to contribute more than 70 per cent of GDP.
Yet too many of them leave succession late. A Harvard Business Review analysis notes that a lack of co-designed plans can derail handovers, with 25 per cent of failed transitions linked to an unprepared heir.
Little wonder, then, that succession planning emerged as the top priority for family businesses in Julius Baer’s 2025 Family Barometer report, in collaboration with PwC Switzerland.
How to pass on identity during succession
Succession planning is both operational and emotional. “In all wealth structuring and succession planning, one part is about the technical details – tax and legal advice – but at least 50 per cent is emotional,” says Silke Tschatsch, Julius Baer’s Head of Wealth Planning, Switzerland and Germany.
She points out that families who discuss purpose early tend to make better transitions, as the next generation feels connected to the mission, not just the money.
In Lau’s case, leadership meant evolving the firm’s identity. “I wouldn’t say we reshaped the company values, but we expanded the repertoire of what’s important.” The first generation had a traditional focus on timber transportation logistics and shipyards; her generation widened the outlook and professionalised standards.
That arc fits a broader pattern whereby wealth advisers help families articulate values, capture them in charters and constitutions and align them with governance: steps associated with stronger performance and resilience, according to a McKinsey study.
The gradual approach to succession
Phased handovers reduce risk. Families often progress from soft exposure to hard authority:
- Early observation and mentoring (attending management meetings, shadowing leaders).
- Defined projects where the heir proposes and executes, then reports back.
- Board participation or voting shares only after competence is demonstrated.
The Julius Baer & PwC Switzerland Family Barometer previously showed how families formalise this preparation. It found that ultra-high-net-worth (UHNW) families most often prepare heirs by:
- Involving them in family governance structures
- Exposing them to investment discussions and decisions
- Engaging them in philanthropic projects
- Providing targeted education and training opportunities
Each of these creates a structured setting for learning – building financial literacy, decision-making and accountability before a full transfer of power. Tschatsch also cites education as a cornerstone, with Julius Baer running tailored programmes with academic partners to build governance and leadership skills.
Even so, interpersonal dynamics can stall progress. “We do have meetings where if the parents are in the room and the next generation speaks up, they will often interrupt the children,” Tschatsch says.
Creating forums where next-gens lead segments without interjections helps them move from listening to contributing – and, eventually, to decision-making.
Lau’s trajectory demonstrates why pace matters. “There was already a sense of ownership with the Singapore expansion from the beginning, because it was my project,” she says. “But it took close to 10 years before I felt confident enough not to rely on mentors, and to be sure that the decisions I make are in sync with what we stand for as a group.”
Why heirs should step up at their own pace
There is no universal timeline. Some heirs step up in their twenties, others only in their forties. Tschatsch’s rule of thumb is to begin education early, connect heirs to assets gradually and transfer real responsibility once they have external experience. A co-designed roadmap – setting out the training, roles and milestones that trigger each stage – helps prevent both premature handovers and unnecessary delays.
She points out that the absence of such a plan can turn a family health emergency or a next-gen’s frustrations into a business-threatening crisis. Equally, the right decision may not be to hand down the operating business.
Tschatsch recalls a founder whose daughter decided, post-pandemic, that she didn’t want to take over the business. Instead, the family sold – preserving wealth and relationships. Smart succession puts long-term stewardship ahead of automatic inheritance.
How heirs can make their own success story
Many next-gens want agency, not just access: the ability to apply family resources to ventures that reflect their priorities. Enabling the next generation to bring their own ambitions into the tent – whether through entrepreneurship, a focus on sustainability or philanthropy – often re-energises legacy firms.
According to a report by Family Business United, having an ambition beyond financial success, as demonstrated by the philanthropic endeavours of the Walmart Foundation or the Ford Foundation, can help family members bond while also improving employee morale and loyalty.
As new generations bring fresh priorities, from sustainability to social impact, the definition of succession itself is changing. It is less about replicating the founder and more about equipping heirs to steer the family’s resources towards relevance during a new era.
For families willing to codify values, share responsibility and embrace change, succession can mean more than survival: it can mean renewal.
This content was paid for by Julius Baer and produced in partnership with the Financial Times Commercial department.