Intergenerational Governance: A Key Challenge for SMEs in 2025 – An article by Ivan Reusse, Head of Leadership Development at Grant Alexander Switzerland, for Le Monde Économique
30.09.2025
The clash of generations at the heart of companies
In my previous article, I addressed governance in its broad sense.
Today, I’d like to focus on a specific dimension.
SME governance has entered a turbulent zone. Business leaders are not only dealing with digitalization, ESG pressures, and talent shortages — they are also facing another challenge, quieter but equally transformative: generational differences. In an SME of 50, 100, or 200 employees, these cultural and value gaps are felt even more strongly than in a multinational, because structures are smaller and decisions more visible. The question is no longer whether SMEs are concerned by this issue, but how they will integrate it into their governance.
Diverging expectations
Each generation approaches business and governance through its own lens.
Experienced leaders, often baby boomers or Generation X, value stability, loyalty, respect for hierarchy, and a long-term vision rooted in continuity. They emphasize experience, trust-based relationships, and a cautious approach to risk-taking.
Younger generations, Y and Z, seek more meaning, transparency, participation, and flexibility. They want to understand decisions, have their say, and see their company embody strong values around sustainability, fairness, and modernity.
In an SME, these differences are felt in everyday operations. Where a CEO might prioritize financial stability and caution, a younger employee may grow impatient, calling for innovation, digitalization, or stronger social engagement.
Practical insights: what managers say
Feedback gathered from inclusive leadership training confirms these differences. Several managers note that intergenerational diversity enriches strategic decisions and fosters mutual support on a daily basis. Some even describe true “generation shocks,” where baby boomers and Gen Z have radically different views on work and work–life balance. But they also highlight how respect, dialogue — and sometimes shared humor — can transform these differences into positive levers.
One concrete example often comes up: organizing intergenerational meetings. These moments, sometimes tense, become highly constructive when everyone is invited to share their vision of work. Younger employees push for flexibility and speed, while more senior ones bring depth of analysis and valuable caution. By combining these perspectives, SMEs often arrive at more balanced and realistic solutions.