With most family businesses being multi-generational, and media choosing to highlight splashy investment roll-ups, you may have wondered about the viability of the family business. I even had a executive tell me, in his opinion, family businesses can’t survive. After just spending intimate time with a whole group of next gens at an event, I believe the family business has a bright future. Here’s why.
They care deeply about legacy. At that event, I witnessed several young men and women moved to tears as they talked about their grandparents and parents hard work. Their pride in family and legacy burns fiercely. Then, a week later, I met with a 40-something next gen who told me he had pledged all his real estate when the company was impacted by oilfield downturn to keep it afloat. That is commitment. He has since had a fabulous year, but his love for what his grandfather started was what powered him through the tough time.
They understand technology-driven process efficiency. Next Gens are literally pushing their reluctant parents into technology that is transforming historical cost structures. They want to do business “smarter” by utilizing automation that not only reduces costs but delights customers. They are tied at the hip to their phones, think there should be a fast, digital solution to just about every business challenge, and they are creating them! A twenty-something young lady awed her peers at our event with the website she had created for her family’s company. The functionality was stunning and they were already reaping the rewards of new customers they never would have had without her genius.
They are eager to learn, especially about financial drivers. Many next gens have spent time in college level business and accounting courses. They also know intuitively that their family business is different from their college case studies and asked excellent questions about specific fundamentals. Unfortunately, I discovered they are often excluded from financial discussions but still eager to learn and bring value. If you believe that as one business mogul said that, “the speed of learning is the competitive advantage”, then watch out world these kids are coming!
They aren’t afraid of hard work. I hear a lot about Millennials not wanting to work hard. Tell that to this group and they would tell you you’re dead wrong. What they do is work intensely. They have learned focus by watching their parents multitasking habits seeing you can’t effectively tackle ten things at once effectively, so they choose to work differently, intently, project by project. As hard as they work, they also understand they crave life outside of work and they will pour on the gas at work to be able to have time with their young families. They want things to be different and better for their kids where family is at least equal to work, where kids don’t take a back seat to customers.
They yearn for significant impact. They fully understand that the legacy family business is a vehicle for creating wealth. But it’s not just their own wealth they crave. They see the business being an ideal vehicle to change their communities and care about causes bigger than themselves. They get super excited knowing they be part of a bigger positive change through the family business vehicle.
They think in broad, wide scope possibilities. Because they want significance, their perspective of the family business is expansive, often going beyond traditional products and services. I believe their ability to dream into the future and create possibilities will have powerful positive impact on the family business in future generations as they work to tap into their children’s and grandchildren’s burning passions, using those passions to expand product and service offering far beyond what their parent’s businesses are today.
They understand servant leadership. In a time where we are told that Millennials are all about “me”, I saw zero evidence of entitlement mentality or selfish ambition. Instead I heard them caring about people and teams and exploring how they could serve better. Maybe because some had been dictated to in their growing up, they seek better and different ways. I believe their servant hearts will be a powerful force going forward transforming business in major ways.
So, with all these good qualities, are there dangers? Absolutely. The biggest danger I see with next gens is their person to person communication skills. There is a huge void their digital age upbringing is leaving that, if left unfilled, could spell disaster for them. Even with their hearts to serve people, their schooling and experience to date has not taught them how to create deep, meaningful relationships and how to powerfully communicate and motivate teams as they traverse this tough thing called leadership. This void means that some are already struggling with others in the organization.
That struggle is also made even more difficult by well-meaning but misguided parents who throw them into some of the most challenging roles in their organizations as first steps into the business with very little training or mentorship. And many do not have a defined career development plan and are just respectfully doing what is asked hoping to earn their co-workers’ respect. As children of the boss, they are very aware they are under the microscope.
As a person whose company is deeply devoted to family businesses, I am highly encouraged by the next generation. The gaps they have in communication and relationship development are solvable and we are hard at work figuring out ways to help because we see passion, commitment, fortitude, intelligence, drive, heart, and vision. Yes, the future of family business is about to be in great hands.
