Many founders of businesses who have the intent of
passing the business to their children find it difficult to develop a plan and
a process for the development of the next generation and the subsequent
transition of the business to the next generation.
The founder’s heart is generally in the right place
in their desire for the next generation to take over the business, make the
right decisions, and accept the responsibility. Statements and comments
frequently made by the senior generation may include why don’t they tell me
what they want to do; what do they want; why won’t they just step up and take
responsibility, or what do they expect of us?
In subsequent conversations with the next
generation, they state, why doesn’t Dad / Mom just tell us what they want,
which one of us will be president, when will they retire, or what will they do
when they retire?
What was intriguing in those conversations was the
fact that in most cases the next generation was often not given opportunities
to learn how to make critical long-term strategic decisions and did not have /
or participate in family council meetings to learn how to analyze both family
and business issues. In some situations the next generation did not have the
opportunity to learn how to operate the business.
It is critical for the senior generation to
consciously and specifically help the next generation grow. The next generation
needs to gain the expertise, experience, mentoring, tacit knowledge, passion,
and internal drive to continue building the family legacy. The next generation
needs to hear praise, encouragement, appropriate guidance and the confidence of
the senior generation. When the proper plans, processes, and guidance is in
place by the senior leadership, the next generation can continue building the
legacy.
"A leader is best when people barely know he exists, not so good when people obey and acclaim him, worst when they despise him. But of a good leader, who talks little, when his work is done, his aim fulfilled, they will say, 'We did this ourselves.'"
—
Lao-Tse
What have you / are you doing to prepare the next generation?
What will the next generation say?
In many situations the help of an outside facilitator can
help guide the process. If you would like to discuss this in more detail,
please email me.
