Most people in my generation remember Mads Skjern from Matador. The hard-working entrepreneur from Korsbæk, who is ahead of his time, sees a gap in the manufacturing market - and builds a clothing empire.

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But we also remember how he ends up when the empire has to be passed on: no one wants to take over, and things really fall apart when his son Daniel makes it clear that he'd rather design fine dresses than sell Mads' cheapest goods.

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The conflict is particularly resonant in Denmark, one of the countries in Europe where most businesses are run by the owner or founder - and therefore at some point must be handed over to the next generation or perhaps a private equity fund. A 2015 survey showed that around seven out of ten Danish companies are owner-managed.

Feelings must be on the table

I have seen many examples of generational change that goes wrong. Feelings and emotions can tear families, friendships and partnerships apart.

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The classic strategy books don't offer much help. There is surprisingly little theory on how to reconcile emotion and business when passing on a life's work.

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In my experience, emotions need to come to the fore. They only become dangerous if left unspoken. And often they are actually more rational than you might think. Back to Korsbæk: Of course Mads Skjern turns up his nose at Daniel's fine dresses, because his business is based precisely on a rebellion against the exclusionary behaviour of the upper classes. On the other hand, it's no wonder Daniel has new ideas and cultivates his talent.

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Opposition is not necessarily a problem in such generational changes, but feelings and ideals need to be brought to the table: What drove the old founder? Where is the lifeblood?

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Use emotions strategically

Then the emotions must be used strategically. For example, by formulating the red lines of the company's future strategy and action plan. For example, what is a no-go to sell from? What should we keep doing even if it's not profitable?

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One example is Carlsberg. In the old days, the entire production was located in Valby. When production moved to Fredericia, the Jacobsen brewery continued in the historic surroundings of Valby - with a thick line under the connection to the old brewer and his visions.

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For me, it's a picture of how there can be room for both emotion about the past and hardcore business - if both are based on strategic clarity.

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If, on the other hand, it is unclear what is emotion and what is business, then it almost always ends in conflict when the action plan has to be formulated.

Maybe the DNA needs to be reformulated

The paradox of many successions is that the owner and the heir are very concerned about the future: What do we need to bet on to keep the business going?

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But maybe it's a good idea to dwell a little on the past too: What was the DNA to begin with? It can be an eye-opener for both owner and heir.

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So we can finish where we started - in Korsbæk: Maybe Mads Skjern's success wasn't based on cheap clothes at all. Maybe it was more based on the will to innovate and the courage to lead the way. All of which Daniel also possesses.

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This column was published on Jyllands-Posten Finance and in Jyllands-Posten, Erhverv on 20 April 2022