STEPPING BACK AND STEPPING UP

For family-owned businesses, leadership transitions are among the most pivotal moments in a company’s lifecycle. Unlike publicly traded firms, these transitions are deeply personal, blending business strategy with family relationships, legacy, and identity.

We asked local businesses—Forest City Gear, LaMonica Beverages, Schmeling Construction, and Trekk Design—to share best practices from their own generational leadership transitions.

Start the process now
One of the most common mistakes family businesses make is waiting too long to discuss succession. Leadership transitions should not be a single announcement but an ongoing dialogue that begins years in advance. Early conversations allow family members, employees, and stakeholders to align expectations.

“You have to start early and work on it continuously,” said Steve Schmeling, fourth generation president and CEO of Schmeling Construction Co., a founding member of the Greater Rockford Chamber of Commerce (GRCC). “It takes time; it really does. And if you think you can accomplish it in two or three years, you’re sadly mistaken.”

Prepare the next generation
Future leaders need more than a title; they need experience, credibility, and trust. This often means giving next-generation leaders opportunities to work outside the family business, manage teams, or lead strategic initiatives before taking the top role.

Shayne Terry and Emilee Christianson are co-owners and COO and CEO respectively at Trekk Design, an agency started by Terry’s mom, Laura Bennett, and Christianson’s dad, MJ Anderson.
“When my mom knew she was looking at retirement, she asked me, Emilee and a couple of other people to become managing directors of the company so that she could start to step back,” Terry said. “It was so useful and very smart of her to have that transition for us. We needed to actually go through it while she was still there to advise and guide us.”

Peter Schmeling, VP of sales at Schmeling Construction, has spent the past nine years preparing to be the fifth generation to lead the family business, including working for another construction company after college.

Carly LaMonica, third generation president of LaMonica Beverages in Loves Park, not only worked for another company for five years, but she also had to complete a multi-year training program required by the company’s largest supplier before being approved as successor to the family business.

Address family dynamics openly
Family relationships don’t disappear at the office door. Bringing in neutral third parties—such as advisors, facilitators, or family business consultants—can help families navigate sensitive discussions productively.

Kika Young, third generation president of Forest City Gear in Roscoe, transitioned into leadership under less-than-ideal circumstances after both of her parents had to step back from their respective roles at the helm due to health issues.

“When I was running the company as interim president, we seriously considered selling, because my mom was worried it would be too much of a burden on our relationship as siblings. So, we worked with a private equity company and an investment banking company to explore our options,” Young said. “It was actually my sisters who decided they weren’t interested in selling and wanted me to run the business.”

Young’s sisters, Appy Mikel and Mindy Young, remain shareholders in the family business.
LaMonica admits she was nervous about how her transition to president might affect the relationship with her siblings who also have leadership roles in the family business. Her brother, MJ LaMonica, is director of warehouse and logistics, and her sister, Jessie Fletcher, is director of business operations and successor manager.

“But I’ve been blessed to work with two of the strongest people I know in the business, and they work their butts off. We all pull our own weight, and our roles in the company are separate enough that we’re not on top of each other.”

Communicate clearly to build trust and restore confidence
Leadership transitions can create anxiety among employees, customers, and partners. Clear, consistent communication helps maintain trust and stability.

Terry and Christianson learned that although they had both worked at Trekk for several years, it didn’t mean the staff knew what to expect from them as leaders. So, they started writing an internal newsletter to share their vision for the company.

“We had to build trust with everybody from ground zero, because we’re not our parents; we’re not the same people. We’re just going to do things a little bit differently,” Christianson said.
“We couldn’t leave things open to interpretation; it was important to be explicit,” Terry said.

Honor core values while embracing change
Successful transitions balance respect for the company’s history and values with openness to innovation.

“One of the things that I worked on very closely with my parents many years ago was defining our core values The first and foremost is, ‘Families matter and always will,’” said Young.

For the team at Trekk, fun and creativity are vital to the business culture. “If you’re doing creative work, it’s got to be a little fun. You have to have a lightness about it and a playfulness about it for those really creative ideas to come through. We do this job because it’s actually really fun, and we’re very lucky because we have wonderful clients,” Terry said.

Plan for life after leadership
One of the most underestimated risks in a family transition is an ambiguous post-transition role for the incumbent. When leaders “hang around” without clear boundaries, they unintentionally undermine their successor. Employees, customers, and stakeholders must understand that decisions now rest with the new leader.

“The hardest thing for me to give up has been my regular customers. When I was a project manager, I developed relationships with these people that have lasted for years. But I’m not their go-to guy anymore, and that gives a little punch to the ego,” Schmeling said. “But that’s OK. You want your children and your team members to succeed. And that’s how it should be.”

Generational leadership transitions are not just about replacing a leader—they are about positioning a family-owned business for long-term success. With early planning, open communication, and a willingness to adapt, families can turn a moment of change into a powerful opportunity to renew their business and preserve its legacy for generations to come.