Preparing the next generation

Key to the successful evolution of any family Business is the development of the younger generation of the family members for the leadership, commercial and general business skills demanded of the family by the business. In addition, younger generations should understand the responsibilities that success can bring, and how best to ensure their positions of commercial influence and the benefits given to them by personal affluence, are deployed in ways which will give them the best chance of fulfilled, productive and happy lives. Key challenges include:

• Development of family members involved in the business and preparing them for future leadership if appropriate
• Educating the next generation to be responsible owners of the business
• Encouraging them to be responsible with wealth
• Developing a cohesive team in the next generation which can work together to arrive at consensus, allowing continued business success and family harmony.

Challenges facing the next generation

• Increased choices - not all will want to join the business straight from study, if at all
• The pressure of living up to expectations
• Sibling rivalry
• Knowing how to connect with the business if they are not directly involved
• Changing lifestyles - children in family Businesses are often raised in a culture of wealth and entitlement
• Loneliness and/or a lack of peers within the business
  

Negotiating such challenges successfully and supporting and preparing the next generation is key to enabling them to unlock their full potential and allow smooth transition of the family Business from one generation to the next.