Formed through the merger of several local companies, CDCL has gradually established itself as a key player in the construction sector in Luxembourg. Still owned by its founding families, the company is now led by Jean-Marc Kieffer, a representative of the Diederich-Kieffer family, which remains the majority shareholder. From public infrastructure to property development, the group has expanded its scope to cover the entire value chain, from structural work and development to complex engineering projects. Its steady growth is underpinned by an organisation that has been shaped over generations.

In a sector under pressure, characterised by increased competition and shrinking margins, CDCL has embarked on a targeted diversification strategy, particularly in property development and building technologies. At the same time, the group is moving towards more sustainable construction models through the integration of hybrid timber-concrete solutions. Its trajectory illustrates the balance sought by family-owned businesses: retaining control whilst adapting their model to a changing market.

In your view, what is the main lesson you have learnt from your experience – or from your ongoing reflections – regarding succession planning and engaging the next generation within your company?

Jean-Marc Kieffer. – “You can’t start thinking about succession early enough. Ignoring the issue will inevitably lead to a situation where, at some point, you’ll have to act under time pressure and with fewer viable options. Long-term planning will ensure optimal preparation and will benefit the business.

The first question to ask is whether the next generation is available and possesses the necessary skills. If so, the new generation can prepare themselves and be groomed under the best possible conditions. If not, a solution involving management by individuals from outside the family must be found. A combination of the two is also a possibility.

How do you manage to balance the family’s expectations with the company’s economic and strategic imperatives, and which trade-offs have been the most decisive?

“It is essential to have transparent communication and for the objectives to be clear to everyone. Ideally, and where possible, the objectives should have been set jointly; or, if this is no longer feasible in cases where there are a large number of shareholders, a majority should support the objectives.

When the interests of the family, or of certain family members, are no longer aligned, swift action is required. One must either try to realign them or consider whether the business should be sold. Alternatively, family members who no longer see their interests reflected in the business can be removed from the shareholder structure.

Which decisions or developments in the areas of governance or the professionalisation of management have had the most significant impact on your company?

“The turning point in terms of governance for our company came when we transitioned from a limited partnership, led by a single patriarch who made all the decisions, to a public limited company with a board of directors comprising directors representing the family shareholders, as well as independent directors.

How does your company balance the need to honour its heritage with the need to innovate or transform itself in order to remain competitive?

“We have set no limits, except that the transformation must always be carried out in accordance with our values.

What were the most decisive choices regarding the financing of growth, and how did they influence the company’s governance and trajectory?

‘We have used traditional sources of funding wisely and with due care.

What tax or legal issues have proved to be the most critical for your family business, and how have you addressed them with a long-term perspective in mind?

“The transformation, first into a public limited company, and then the spin-off of the various entities, were certainly a challenge, but were successfully achieved with the help of consultants.

A family business doesn’t think in terms of quarters, but in terms of generations. As a result, it is more stable.

Jean-Marc Kieffer, chairman of the board of directors, CDCL

What strategies have been most effective in developing your product or service offering whilst remaining true to the company’s core values?

“As we transitioned from being a simple manufacturer to a developer serving a B2C customer base, key changes were implemented without significant resistance from either the shareholders or the teams.

At what point did you feel it was necessary to accelerate the company’s growth, and what lessons have you learnt from this phase of scaling up?

“We have scaled back the size of the legacy business and expanded that of the new business areas.

In your experience, how can a family business attract and retain key talent in an increasingly competitive environment?

“A family business doesn’t think in terms of quarters, but in terms of generations. As a result, it is more stable in the long term, which is a key advantage for employees.

How has increased international competition in your domestic market changed your positioning, organisation or strategy?

“We sought a partnership with a local colleague, also a family business.”