Preparing Next Generation Leaders: Do Our Children Have What
It Takes?
 by
Henry Landes
April, 2003
While you rarely will hear the term "generation gap"
in everyday conversation anymore, it is still a pressing concern
for many family businesses. This generation gap, however, is not
a matter of fashion or political views. Instead, it's about the
transition of primary leadership of the family business as the seniors
start to contemplate retirement, or at least cutting back substantially
from the business's day-to-day operations.
"Who in the next generation has the ability to take the reins
of the family business and guide it successfully now and in the
future?" founders may find themselves wondering. The answer
is not always as simple as it may seem. Naturally, a son or daughter
of the owner(s) often has the inside track to assume leadership,
but heredity is not necessarily destiny, nor is it a guarantee of
success.
Transition of Leadership
In order to successfully provide leadership for any business,
especially a family business, special professional skills and a
high level of personal maturity are required. Making the transition
from working in the business to leading the entire operation can
be intimidating to say the least. An entirely new skill set is required.
Changing management is a time of particularly high risk for both
the family business and the family itself. In fact, many don't survive
this period. Recognizing the importance of this pivotal moment in
the life of a family business, the Delaware Valley Family Business
Center has launched a new program to help families successfully
bridge the "generation gap."
"Next-Generation Learning Lab"
The "Next-Generation Learning
Lab" is designed to help next-generation leaders of family
businesses deepen understandings and build competencies in business
and ownership. Launched last fall, the program combines individual
mentoring with group-based, peer learning to give participants the
key management and ownership skills necessary to make a successful
leadership transition in the family business.
Members participate in a group with 12 to 14 other individuals
in similar positions from noncompeting businesses. Each monthly,
half-day session is professionally facilitated to stimulate and
focus relevant discussion on the unique challenges of is members.
Participants have the opportunity to develop long-term business
relationships with peers who know, first hand, what it means to
lead a family business. The discussions allow them to stay ahead
of potential problems and pitfalls and focus on long-range strategies
and concerns.
Benefitting From Others' Experience
The group setting means that participants will have the opportunity
to discuss suggestions with the benefit of support and feedback
while achieving cost and time savings by learning through the experience
of others. The overall goal of the program is to enhance leadership
ability for the long-term success of the family business.
The chair selects and prioritizes topics for group discussion based
on the personal and professional development plan of the members.
Topics may include:
- Financial management and controls
- Marketing strategy and sales management
- Organizing for success
- Performance management/improvement
- Strategic planning
- Performance-based compensation
- Shareholder development
- Operations management
- Human resources management
- Boards of directors
By planning for and dealing with leadership issues before they
are imminent, family businesses can facilitate the process of transition
and make it more likely to end in success.
Henry Landes is founder and president of the Delaware Valley
Family Business Center, located in Sellersville, PA, which has served
over 400 family-owned businesses since 1988 with consulting services,
forums, and other assistance. A contributing editor of Family
Business magazine, Landes and his clients are often featured
in this leading international publication. For more information
about the "Next-Generation Learning
Lab" or other programs, call DVFBC at 215-723-8413 or 800-296-8672..
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