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.