Succession is one of the most talked about issues for owners and managers of family businesses. But what of the next generation themselves? How do they feel about the prospect of running the family business, and how should those at the helm successfully engage the next generation of family business leaders.
Annabel Prow, CEO of The Wilson Organisation, herself the third generation to lead the family business, considers the latest thinking on the Generation Game. Dr Gwenllian Williams, managing director of deWinton-Williams Consulting, is recognised for her appreciation of family businesses and the challenges of running a business alongside family members. She was guest speaker at the latest in Wilsons' Midlands Family Forum events in the East and West of the region, and made some thought-provoking observations as to the psychology of the family business, based on her own research.
This research has led to her identifying some of the potential drivers for maximising the capability of the people within a family business, notably the next generation, and she shared her key findings with us at the Forum.
Many of Dr Wiliams' observations struck a chord for me and my sister Charlotte; we took over the day to day running of the family business three years ago, and our father and mother are still involved.
Some time ago, Charlotte and I recognised the value of learning from other family business owners and managers, which prompted the creation of the Family Business Forums. It is invaluable to hear how other family businesses have dealt with the issues inherent in them, and these Forums present the ideal opportunity to discuss the special needs and challenges faced by a family business. They are a great place to network with other family businesses and share experiences.
At the latest Forums, Dr Williams presented a refreshing insight into how to drive success for the next generation of family business leaders. Indeed, many of her practical recommendations mirror our own experiences of being part of a family business and many of her suggestions have proved to work for us.
For the child of a family business, the journey begins with the early environment that surrounds the business. From this early engagement phase, children can see the business as either 'a provider or a thief', in terms of the time and energy invested in it by parents, and whether this is at the expense of a child, childhood and memories.
Charlotte and I were involved in the business from an early age, often coming into Wilsons' Nottingham offices to help. Our parents frequently involved us in discussions about the business around the dinner table, and encouraged us to come into the office to help open the post before school, which led to us seeing the business in a positive light, and as our destiny, rather than a dungeon waiting to capture us in adulthood.
Clear governance and a succession plan are important. Underpinning this should be clear roles for the next generation and a timescale of the future plan. Family members shouldn't simply arrive at the business, but their entrance should be carefully planned for future generations, alongside the family and business vision and goals.
Dr Williams advocates the next generation actively acquiring experiences outside of the business and again from personal experience, I would agree. Whether through education, higher education or experience from other businesses or cultures, this collateral can do much to assist the next generation in adding value to the business to assist its sustainability and development, and that of the next generations themselves. And education shouldn't stop the day you join the business, continued learning is valuable right up until exit, and our Forums are one excellent example of one route to further personal and professional development.
The next generation's integration into the business is not only important to the individuals
