Developing Leaders for Family Owned Business Requires Intentionality

In a previous blog (August 8, 2010) I cited a study where it was found that approximately half of the companies surveyed plan to increase their leadership training budgets in 2011. This increase is due to the recognition of the cost effectiveness of building leadership from within as opposed to only hiring the key talent.

To continue my thinking on this critical topic, Family Owned Businesses must also intentionally help the next generation grow and develop. The potential talent pool already knows and understands the family culture. The investment is truly building the legacy and looking to the long-term as the next generation is nurtured.

Previously I recommended that each Family Owned Business leader continue to develop themselves; to carefully select learning projects tailored to the individual in the next generation; and the utilization of 360 Degree Feedback.

Here is a continuation of ideas to nurture the growth and development of the next generation:

4. Build exposure to other leaders: Broaden the opportunity of the next generation to network with seasoned leaders of other Family Owned Businesses. This often may be the opportunity through involvement in trade associations, Family Business Forums, or the local Chamber of Commerce. Either way, it must be intentional.

5. Exposure to the Strategic Agenda: Invite the next generation to sit in on the planning discussions for the next business cycle. Do it now, before they will be expected to make the decisions. Show them your thought process. I know one business family that has rotating seats on their Board of Directors for the next generation.

6. External Coaching: Sometimes our children hear things differently, more clearly, and more receptively from an ‘outsider’. The Coach must understand the issues and concerns of a Business Family, be committed to the success of the next generation and the legacy of the business, and have the ability to both push and pull the next generation along in their learning process.

I will continue to suggest additional ways to develop the next generation in future blogs, but would be interested in hearing your thoughts on these additional ideas.

What has or is your Family intentionally doing to develop the next generation?

Let me know, I would be delighted to include it in the future.