In many family businesses, succession planning tends to focus on readiness: identifying who’s next, developing their capability, and working out a transition. But at TWYD, we often find that capability isn’t the real issue.
The real challenge is perception.
We call it the Short Trousers Effect. It’s what happens when a next-generation leader is still seen through the lens of who they were as a child. Maybe it’s the one who once knocked over a tray of drinks in the boardroom. Or the teenager who argued passionately about salaries over Sunday lunch. Or the sibling who used to walk out of family meetings in frustration.
The name might feel a bit old-school and slightly male in tone. That’s part of the reason we use it. These perceptions often come from an earlier time. And unless they’re addressed, they stick around for much longer than they should.
It might sound minor. But it’s not.
When someone is ready to lead but still seen as a child, succession doesn’t move forward. It gets delayed. Or worse, derailed. This isn’t rare. It happens quietly, and it happens often.
Identity Anchoring: The Labels That Don’t Let Go
What’s going on here is something we refer to as identity anchoring. Families often assign roles early — the responsible one, the creative one, the baby of the family — and those roles tend to stick. Not because they’re still true but because they’re familiar.
In most companies, people are judged by what they do and how they do it. In family businesses, those judgements are shaped by history. And that history is personal.
That’s why many next-gen leaders feel they’re not trying to prove themselves to investors or customers but to their own parents, siblings, or cousins.
When Capability Isn’t Enough
Being ready to lead isn’t just about having the right skills. In a family business, it’s about being accepted as the right person to lead. That means being recognised not just on paper but in the minds of others.
A title won’t do that. Nor will a public announcement.
People need to see you differently. As a peer. As someone who can take the business forward. That kind of change often doesn’t happen naturally, especially when long-standing relationships and memories are involved.
Why Outside Perspective Helps
This is where an outside voice can make a real difference.
A Non-Executive Director or advisor who isn’t part of the family brings a fresh set of eyes. We’re not caught up in past events or old dynamics. We see what’s in front of us now.
That can be surprisingly powerful.
When someone trusted and neutral says, “She’s ready,” or “He’s already leading,” it helps change how people see things. It gives the current generation space to update their view. And it helps the next generation feel genuinely seen, not as who they were but as who they are now.
That change can do more for succession than any formal process on its own.
Helping People See What’s Already True
In many cases, the rising generation is already doing the work — running a division, solving big problems, growing something new. But until the perception catches up, they’re still waiting for full recognition.
That’s where practical support can help. Leadership assessments. External reviews. Conversations with the board or family. The point isn’t to force a decision. It’s to help people name what they’re already starting to see.
When people recognise the change, everything starts to move more easily.
You Don’t Need to Forget the Past
Changing perception doesn’t mean letting go of the past. The best transitions don’t erase what came before. They honour it. They reflect on the journey and the experiences that shaped the person and the business.
You don’t need to forget the short trousers.
You just need to look at who’s wearing the shoes now.
A Final Thought
At TWYD, we often say leadership isn’t inherited. It’s earned. But recognition has to come from others.
So if succession feels stuck it might not be about planning or capability. It might be the Short Trousers Effect.
And if that’s the case, one of the most helpful things you can do is bring in someone who sees the present, not the past.
About the author
David Twiddle, is the Founder of TWYD & Co, an executive search and leadership advisory firm specialising in family businesses and family offices. He works closely with business-owning families to support succession, leadership transitions, key appointments and the recognition of next-generation talent.