Intentionally Developing Leaders for Family Businesses

(Part 1)

CEOs too often find that the depth of leadership talent within their organizations is not what it was in the past.  Sometimes this is a result of layoffs or other cutbacks during difficult economic seasons.  Sometimes this is a result of natural attrition without replacing departing talent.  Sometimes the organization has just failed to build up future leaders.  For many business families, the issue is how to train the next generation to be those future leaders.

As Baby Boomers plan the transition of the business to the next generation, it will take intentional effort to help the next generation grow and develop – and ultimately be prepared to take over the reins.  One of the significant advantages of developing the next generation of the family is that the potential talent pool already knows and understands the family culture.  The investment is truly building the family legacy, but it takes intentional effort and commitment.

What are a few intentional ways to develop the next generation?

Continue to develop yourself: As a leader in your family, you set the example. Seek to learn and grow at whatever stage of life you may be. The more competent you are, the more likely people are to trust you. Developing yourself will influence your relations with others, motivate others, and inspire others.

Carefully select learning projects: Every company has areas of growth opportunity. Take time to analyze what the business will face in the future.  Then, have the next generation take responsibility for beginning the investigation and data gathering regarding how the business can address the issue. The opportunity to learn the business, craft analysis, and present (and support!) their conclusions will help the next generation learn to face future business issues head-on.

Utilize 360 Degree Feedback: 360 degree feedback can prove invaluable to gain deeper insight into how others view leaders. Many times, we don’t know what we don’t know, which can create bigger problems later on. This kind of feedback can be a very valuable learning opportunity, but it must be done carefully. It has the potential of crushing the spirit if the process is mishandled. It must be done in an environment of trust, care, and confidentiality and is often best done by an independent, unbiased third party.  The rewards of this kind of feedback can be high, as long as it is managed properly.

Nurturing and developing the next generation can be a very rewarding journey. 

Moreover, it supports and builds the family legacy.  However, it takes intentional commitment and effort.

Oversight and Insight: Governance in Family Enterprises

Governance is often described as one of the fundamental responsibilities of ownership of a multi-generational family business. Therefore, adopting solid governance practices for your family and business may be two of the most beneficial actions you can take.

In this webinar we will discuss the purpose, development and the effective use of Boards and Family Councils, the primary governance platforms in a family enterprise. With proper execution, Boards and Family Councils add a unique accountability component; this serves to propel growth and higher-level functioning for the business, its owners and the family. Emphasis will be placed on the effective use of these influential structures, including essential criteria for Directors and those who serve in this critical capacity.

Ann Kinkade brings over two decades of business experience, working exclusively with business-owning families in a variety of contexts for the last 16 years.

In 2013, Ms. Kinkade launched Lucid Legacy Consulting. Her private practice includes advising family enterprises, facilitating family meetings, coaching one-on-one with executives who desire growth and change, and writing, speaking, and training on a variety of family enterprise topics to audiences of all sizes. In 2014, after 350 hours of training, she earned Certification as an Executive Coach.

Ms. Kinkade is committed to the family enterprise field as a vocation and has developed, presented, and led numerous conferences and educational seminars both domestically and internationally. Topics have included: governance, leadership, communication and conflict, succession, interpersonal and family relations, life stage development, and public policy/public image challenges faced by family firms. She has been awarded the Family Firm Institute’s (FFI) Certificate in Family Business Advising, and is also recognized as an FFI Fellow. She has served on several family business and nonprofit boards, and has authored several articles that have been published in trade magazines, Fortune Small Business and The Wall Street Journal. Ms. Kinkade has been a guest on regional radio shows and has reviewed three published family business books and numerous published articles.

Ms. Kinkade’s prior work experience includes launching Family Enterprise USA (FEUSA), the nation’s first nonprofit, membership advocacy group dedicated to addressing family enterprise public image and public policy issues. As its founding CEO and President, she executed the nation’s first public policy survey of family firms and developed the first forum for family firms to convene in Washington D.C. with federally-elected policy makers, among other organizational initiatives.

Join The Network of Family Businesses for a virtual educational Webinar on Tuesday, September 30, 2014 at 11:00 AM Eastern Time, with Ann Kinkade.

For additional information email: steve@netfamilybusiness.com