Developing Next-Generation Leaders

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FAMILY BUSINESS CONSULTING

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One of the most common mistakes advisors makes when preparing families for business succession planning is they often narrow their focus to the single individual that they deem most capable of running the business upon a CEO’s retirement.  To truly make sure that families retain their core values while maintaining strong corporate governance and sound strategic planning, advisors should consider all next-generational family members and groom them to fit individual unique leadership roles. At Continuity Family Business Consulting, we focus on all members of the business. 

Many Next Generation (NextGen) family members are ill-prepared to take on the responsibilities of leadership roles in their respective businesses.  This can easily be avoided if the NowGen helps the NextGen family members develop a trifecta of core traits that are essential to running a business, which are self-confidence, an internal definition of success and people skills.

Below is how each of the trifecta of core traits is defined in the blog article Developing Next-Generation Leaders on FFI.org. 

Self-Confidence is achieved when someone deeply understands who he or she is and where his or her strengths lie – knowledge essential to navigating the challenges life presents.  Unfortunately self-confidence cannot be taught in a short period of time it is developed over years, from personal conquests and sometimes yielding to life’s obstacles.  Far too often, however, NextGen members lack self-confidence due to the fact that they’ve been sheltered by the life style that allowed them to enjoy wealth and a security blanket of their parents, and most times both.  It’s never too late to change, through 360 evaluations mentoring and peer-to-peer counseling, NextGen family members can restructure their perception of their strengths and weaknesses and learn how they can achieve overall improvement.

Many children are not given much of a choice or are pressured into following in the family business and do not have a chance to accurately express themselves and pursue their passions.  This can be very subtle for example including work in their day to day conversations perhaps around the dinner table every night.  Children are asked less often how their day went leading them to believe that they can only win their parents recognition by expressing interest in the family business.  When this child matures and eventually enters the work environment in the family business they experience feelings of entrapment.   As advisors, we must help NextGen family members establish their own definitions of success by expressing interest both inside and outside the family business.

Successors are often ill-prepared to manage the complex inter-personal relationship dynamics intrinsic to the family business environment.  A well rounded set of skills is essential to running a successful business.  For example one with outstanding technical skills may flounder when it comes to resolving conflicts of understanding workplace behavior, people skills are essential to running the family business at an optimal level.  As advisors we must also help NextGen family members round out their social skill sets by furnishing them with tool chests of communication and conflict management strategies, while giving them a forum with which to practice these skills before they officially assume leadership positions.

Family members must generously invest in the next generation with time, money, energy and wisdom from their own lives if they expect successors to advance a legacy of integrity and value.  Continuity Family Business Consulting can help both the NowGen and the NextGen prepare for the next steps within the family business structure. For more information, visit ContinuityFBC.com or call us at 877-925-5149.