Next Gen Prep: Curriculum for Family Businesses

Catalytic Conversations

This episode is from the Catalytic Conversations aired on IBGR.Network every Friday at 2 pm Eastern. This was the Season 4 opener. Let me know if you liked it, have questions, or suggestions for other topics you'd like to hear more about. Thanks for listening!

Creating a family legacy is hard work. Fewer than 20% of businesses make it to the fourth generation. Why is that? What contributes to the failures from one generation to the next.

A favorite resource is the PWC Family Business Survey series. Today was take a look at the challenges for those in power to prepare the next generation for leadership. Using the PWC Global Next Generation Survey from 2019, we will start off with a few discussion points:

• Gaining top level experience is the #1 priority for NextGens in increasing their skills. 48% would like to do more shadowing/mentoring, 43% feels the need to network more with peers, 42% would like to gain experience outside of the family biz, 41% would like to gain international exposure.
• The “incumbent” generation is not answering the call by and large. 2018’s Survey found that only 15% have succession plans and 44% had none.
• Here are the skill Next Gens say are most important for the business and they need the space to make mistakes and gain experience in these areas:
  • Problem solving and strategic thinking 72%
  • Leadership 71%
  • Financial Management 57%
    

You, and your family, have dedicated significant resources to building the minds and confidence of your Next Gens. But, are you willing to take this a step further – actually several steps further? By designing a succession plan? By creating a list of company needs that you present to the Next Gen to explore fit?

It takes courage and patience to hold the space for the growth and development of the Next Gen. Identify learning and experience goals that yourNext Gen leaders can use to fill their knowledge and experience gaps.

1. Begin by setting next gen up to be the best version of themselves. The relationships between family members as well as with the business itself is explored, developed, and nurtured with the idea that the business will continue into perpetuity.
   
2. Next, consider how far each person could go in leadership development, and in what areas (be specific!).
   
3. Create a family employment policy - explore the roles waiting to be filled by the next generation. Identify who might fill what roles, and how well the person fits the role.
4. Organize regular family meetings.
   
5. Develop a continuity plan for the family and for the business in the face of transitions of leadership, ownership, governance, and the family assets.

You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram. Visit IBGR.Network to download the full set of show notes.

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