Some companies get trapped in their own story for decades. They start doing one thing, build a reputation, and then can't do anything else because the market has pigeonholed them.
They change the product, change the strategic direction, even change the logo. But the market still sees them as what they were twenty years ago. It's a powerful inertia, almost invisible.
Until someone realizes this inertia has an exception. A moment when the market is willing to recalibrate your brand, to see you differently, to believe that you've actually changed. And that moment is generational transition.
The window of permission
When the founder steps down and a new generation arrives, the market implicitly recognizes that something has shifted. It's not the usual strategic adjustment, not a typical marketing campaign. It's a genuine change of guard.
This is why there's a window of permission—a period when the market tolerates you being different people, with different visions, with different strategic directions. You might think changing your brand is easy while the founder is still there, but every statement gets filtered through "but the founder usually doesn't do things this way." When the change is formal and visible, the market is willing to listen.
This window lasts roughly 18-24 months. During this time, the market still tolerates contradictions, changes, the apparent tension between "who you were" and "who you're becoming." After that period, the new identity solidifies. And it becomes hard again to change it.
Hermès: when tradition stays and the market expands
Hermès was founded in 1837 as a saddle factory in Paris. For almost 150 years it stays that way—a luxury craftsmanship brand, tied to horses, travel, and aristocracy. When saddles are no longer needed for horses, there are still bags, belts, accessories. But the narrative always remains the same: craftsmanship, quality, tradition.
In 1978 the founder dies. The sixth generation—the Dumas family—takes over. And there, in what could have been a conservative transition, something intelligent happens: the new leadership keeps the core (craftsmanship, quality, tradition) but expands the perimeter. Not just rethought saddles. Perfumes. Cosmetics. Clothing. Jewelry.
By 2000, 90% of Hermès sales don't come from bags. Yet the brand remains credibly Hermès. How is this possible? Because the change happened during generational transition, when the market was willing to say: "OK, it's not my grandfather's brand anymore, but I understand it's still Hermès." If Hermès had tried to diversify this radically under the founder's leadership, it would have been seen as betrayal. During transition, it was seen as logical evolution.
Three signals that repositioning is possible
Generational transition isn't always the right moment to reposition. There are three signals telling you whether it truly is:
First signal: your current positioning excludes you from markets you want to enter
This is classic—a company that has rejected work for twenty years because "that's not our kind of work, that's not us." Then the new generation asks "why not?" And the reason isn't rational—it's the brand that excludes, not the capabilities.
Take a small metalworking component company in Verona, for example, known as "the major automotive supplier." For decades it refused work in medical devices, design, and aerospace. "Not for us," they'd say. When the son takes over, he receives an inquiry for medical applications. The margin is three times higher than automotive. If he takes it—and communicates the generational shift well—the market is willing to believe him. "Ah, so this new generation wants to do different things." Without the transition, it would sound like "what is this company doing outside its competence? They'll probably do it poorly."
Second signal: the new generation has a credible, different vision
Repositioning doesn't work if it's just an idea the father never had the courage to pursue. It works if the new leader genuinely believes in it, has a coherent theory about how to get there, and communicates it with authenticity. When the market senses this authenticity—"this isn't the old guy trying to stay current," but "this is someone who really wants to do this thing"—the window opens wider.
Third signal: your stable client base is solid enough to tolerate change
You can't reposition if 90% of your clients leave as a side effect. If the base is stable at 60-70%, repositioning is a challenge you can handle. If it's at 95%, the risk is that while you're transforming, your historic client goes elsewhere looking for someone who does what you used to do.
How to measure the right transition
Before deciding to reposition during generational transition, ask yourself two questions:
First: is my traditional market growing or shrinking? If it's shrinking—if the automotive market declines every year, if the textile sector loses volume—then repositioning isn't a choice, it's a necessity. And generational transition is the lowest-risk moment to do it.
Second: are my best clients (the ones who pay most, cost least to serve) still loyal to the old positioning, or are they already looking elsewhere? If your best clients are already looking elsewhere, the market's message is clear: "change before it's too late." Generational transition is your ally, not your enemy.
If you answer "no" to both questions, the conservative advice is: keep the positioning during transition, and if you want to evolve, do it slower, after the new leadership is established.
If you answer "yes" to at least one, the window is open. It won't stay open long. Use it.
If you want to think through where your company stands in this framework, get in touch →. This is exactly the kind of conversation that's valuable before deciding whether transition is a threat or an opportunity.
Until next time — the window of permission doesn't stay open long. Decide first.
Alex
