What should we be doing to prepare the next generation to be involved in the leadership of the business?
Communicate and educate.
Having discussions with next generation family members about their progression path in the business is vital. You need to have a clear development plan set out that considers them being educated about the structure of the business, the risks associated with being a director, the governance framework and financial literacy, in addition to the day-to-day operational running of the business.
This will take time and may involve the family member being invited to attend leadership meetings and working one on one with various family and non-family members in the leadership team to develop their knowledge and skills. It may also involve undertaking external education, such as workshops offered by FBA.
Set goals, measure progress with KPI's and stick to the development plan. It is a journey and will not happen overnight.
By South Australian based Family Business Accredited Advisor
Annette Bonnett
Rubix Advisory
Annette is an expert in Family Business matters. After 27 years in the professional services area providing high quality services to small and medium family businesses, Annette has now set up her own business, Rubix Advisory and will be continuing to deliver the vital advisory services required by Family businesses and their extended family group, including succession planning, generational change, strategic business planning, risk management and governance.
Annette also brings strong and practical expertise in the area of family business, having grown up and worked in her iconic family business from a young age.
