How to Approach Older Generations in a Family Business about a New ERP

The Family Business Crossroads

Every family business eventually faces a turning point. For many generational distribution companies, a change in generational leadership often coincides with the decision to implement a new ERP system.

Legacy software that once worked well now struggles to keep pace with new technologies. Outdated processes can cause missed opportunities and operational slowdowns. Customers have also become increasingly demanding in the era of next-day shipping. 

Oftentimes, making the leap to a new ERP is not just about technology for senior leaders. It’s about legacy, stewardship, and the future of the business they’ve created.

Navigating this transition requires striking a balance between respecting established wisdom and driving innovation.

Understanding Resistance

Resistance to change is rarely just about the software. For many senior family members, their business is the result of a lifetime of effort and commitment.

It’s more than a job; it’s a central part of who they are.

When senior family members show resistance, these concerns frequently shape the conversation:

• Loss of Identity and Control: Change can feel like a threat to the role of ‘steward.’ The one who has protected the business legacy.
• Fear of Obsolescence: There’s often an unspoken worry that new systems will render their years of experience and intuition less relevant, leading to feelings of diminished worth. We often find that there is low self-awareness on this issue. This fear of obsolescence lies beneath the surface of the resistance.
• Risk Aversion: Having witnessed the long-term impact of business decisions, older generations are naturally cautious.
• Cognitive Rigidity: Established mental models make abrupt transitions challenging, especially for those who prefer gradual improvements.
• Security and Privacy Concerns: In an age where hacks and large-scale data breaches have become the new normal, security is a growing concern among senior family leaders.

These concerns can show up throughout daily business operations, causing senior leaders to rely on what they know best, such as manual spreadsheets or outdated workflows.  However, the “if it’s not broken, then don’t fix it” mentality creates silos that the new ERP was meant to solve.

This resistance can manifest as delays when it’s time to make the switch to something new. The delays result in a slowdown of the project and can create tension within the team.

It’s not always about avoiding change. Often, it’s about protecting the values and practices that have shaped the business over time.

Recognizing these issues is essential for a successful ERP upgrade. Addressing them helps maintain trust across generations.

Communicating Across Generations

Empathy and respect are essential when engaging the older generation to get on board with the new project.

Younger family and team members can foster productive conversations by:

• Listening First: Prioritize understanding concerns before providing solutions or defending the new technology. This builds trust and uncovers underlying fears or misconceptions.
• Framing as a Shared Challenge: Position the ERP upgrade as a mutual goal that ensures business continuity, reduces burdens, and preserves legacy.
• Involving Other Senior Members of the Organization: Invite experienced team members as co-architects of the transition process, valuing their insights rather than treating them as obstacles to overcome.
• Translating Benefits: Discuss how the new ERP strengthens customer relationships, supports succession planning, and upholds the company’s legacy.
• Respectful Language: Avoid dismissive phrases and technical jargon. Instead, ask questions that highlight the senior generation’s expertise and connect their language to future business needs.

By grounding these tough conversations in empathy and respect, younger team members can create space for open dialogue and shared understanding.

With this strong conversational foundation, the next step is to apply specific strategies and approaches that help senior leaders feel involved and confident throughout the ERP transition.

Strategies and Unique Approaches

Every family business brings its own culture and history to the table. Selecting the right strategies can make a real difference, especially when it comes to bridging gaps and building momentum for meaningful change.

Here are several practical and creative approaches that can help make the daunting task smoother:

• Legacy Framing and Reassurance of Continued Role: Position the ERP upgrade as the next chapter in the family story, building on tradition rather than replacing it. Frame the ERP as a tool that empowers senior family members’ leadership and decision-making, rather than replacing it.
• Cost-Benefit Analyses: Present clear, concrete data on how the new system supports long-term business goals and solidifies their legacy.
• Demonstrations and Pilot Programs: Use sandbox or demo environments to showcase the advantages of a new ERP in a risk-free setting.
• Parallel Examples: Share stories of other family businesses that made similar transitions while maintaining senior roles and stewardship. Connecting with other senior leaders who have been through the process helps create a safe environment that shows there’s a “light at the end of tunnel” and that a new ERP can work for their business too.
• Empathy Lens: Acknowledge their concerns explicitly—don’t just talk about the system’s “efficiency,” but also about how it protects what matters most to them.
• Multigenerational Training: Facilitate training sessions where all generations learn together, reinforcing collaboration.
• Intentional Knowledge Transfer and Legacy Documentation: Use the ERP transition as an opportunity to document legacy processes, decision logic, and business wisdom. This ensures that critical knowledge is embedded in the new system and preserved for future generations.
• Bomb diffusion: Consider whether senior family members have experienced an ERP transition that did not go well. Create a sense of empowerment rather than resistance by exploring their experience as a point of learning.  This will surface their concerns constructively rather than letting them remain hidden like a ticking time bomb.
• Continuous Dialogue: Change is a process. Maintain open communication and focus on trust-building instead of technical persuasion. Patience is essential.
• Celebrate Milestones Together: Share and recognize small wins and key milestones with the entire team or family members.  “Gamifying” the transition helps track progress in a fun way that celebrates success.
• Prepare for Setbacks and Set Expectations: Have clear strategies in place to maintain momentum and support team morale when obstacles occur. Set expectations early so the team is prepared to address challenges calmly and confidently.

While these strategies provide a framework for the project, their success hinges on preserving the family relationships at the center of the business.

Maintaining Family Unity Amid Change

Family businesses thrive when every generation feels valued and understood. Taking intentional steps can help prevent misunderstandings and maintain strong relationships.

To avoid generational rifts, be mindful of the following:

• Honor Both Adaptors and Innovators: Family dynamics usually include both—Adaptors (steady, cautious, protective of the past) and Innovators (bold, future-focused). Respect and leverage each style to find a balanced path forward.

• Mind Power Dynamics: Ensure all voices are heard, especially those who hold authority or influence.
• Structure Dialogue: Use family councils or facilitated workshops to create safe spaces for discussion.

• Share Wins: Celebrate incremental successes to reinforce that everyone is working towards the same outcome.

Even with the best intentions, some conversations can become difficult. Recognizing when it is time to pause is just as important as knowing when to push forward.

Knowing When to Pause

Progress requires patience. Sometimes, the most productive move is to step back from the conversation to protect family relationships and ensure the project’s long-term success.

Recognizing signs of strain is essential. Watch for indicators that a pause is needed:

• Emotional Flooding: If a senior family member is withdrawing or repeating themselves, it suggests the conversation has moved from discussion to emotional overwhelm.
• Repeated Deflection or Avoidance: If they consistently change the subject, they may need more support and/or time to process the conversation.
• Escalating Conflict: Heated exchanges or personal jabs are signals to pause, reconnect on shared values, and revisit the topic later.

Pausing at these moments is not a failure. It preserves crucial relationships and allows for more constructive dialogue to happen later.

Building a Bridge to the Future

A new ERP is more than a software change. It’s a commitment to the future of your business and the people who make it possible. The process may not always be easy, but it’s worth it.

With the right strategies, your family can turn this transition into a shared success.

Our team understands the unique needs of family-run distribution companies and is ready to help make your ERP transition as seamless as possible. Conveyance Solutions brings decades of expertise and a deep understanding of family business needs. 

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