Tag Archives: multi-generational family businesses

10/12/19

On Taking Initiative

“The only way to get initiative is to take it. It’s never given.”[1]

That’s the statement Seth Godin begins with in “Initiative” his October 10, 2019, blog entry. Initiative would seem indispensable for success in business. But I’ve often found it lacking among family-business leaders when it comes to planning for a multi-generational future.

Over the course of my career as a family-business consultant, I’ve spoken with heads of third- and fourth-generation family businesses about their plans for transitioning the business to one of their children. I’ve asked what they thought the business and the family might look like when their children are leading them.

In answer to this question I’ve been told by that their focus is on surviving, one day at a time. They told me that thinking about the future is not possible right now. Of course, I’m not arguing with the importance of their assuring survival. But I’m convinced that for them, thinking about the future is less ‘impossible’ than they say, and more ‘uncomfortable.’

That’s unfortunate. And it takes initiative to go beyond this. But…

“From an early age, most of us were taught to avoid it. Do your homework. Take out the trash. Wait to get picked. Wait to get called on. Become popular. Fit in. Maybe stand out, but just a little bit. Failure is far worse than not trying.”[2]

Successful multi-generational family businesses recognize the need for developing next-generation leadership early. They’ve built in the ‘initiative’ to do so.

The initiative for planning succession in a family business starts simply—with a conversation. Then another and another. These are big conversation to be sure. Together the family learns about itself, its values, its strengths and weaknesses, and about its vision for future generations.

These conversations can be daunting. They can be uncomfortable. They can be confusing. But to build generations of family-business survival and success they must be initiated.

 

[1] Seth Godin. Initiative. https://seths.blog/2019/10/initiative/

[2] Ibid.

05/20/16

‘Applied Innovation’—Defined For The Family Business

Innovation:

: a new idea, device, or method

: the act or process of introducing new ideas, devices, or methods

Source: Merriam-Webster’s Learner’s Dictionary

 Applied Innovation:

: the process of constant improvement and creative change

: a requirement for the continued success of multi-generational family enterprises

Like any other business, family businesses benefit from, if not require, a culture of innovation—a culture that supports constant improvements to its products, services, processes, governance, and planning.

While the dynamics within family businesses often present obstacles to innovation, a clear view of the competitive advantages of an innovative culture can overcome them.

Next week I’ll write about these obstacles and about some of the advantages enjoyed by family businesses that support a culture of innovation.

03/5/16

A Family Community

In January 2016 Dennis T. Jaffe, Ph.D. published a book entitled RELEASING THE POTENTIAL OF THE RISING GENERATION: How Long-Lasting Family Enterprises Prepare Their Successors. In it he discusses attitudes and actions that together comprise the success of multi-generational family businesses. 

Jaffe’s book makes a strong case for the idea that family business success is less about building the business and more about how the family goes about creating a family community focused on educating and mentoring the next generation and developing next-generation careers.