Why it’s not easy to groom GenNext to take up reins in a family business

By Amit Patni

A family business is one of the oldest forms of business, wherein the ownership, control and management is vested with one, two or many family members. For the longevity and succession of a family business, effective communication between generations is crucial, as it is one of the driving factors for further wealth creation and growth of the business.

The sooner the practice of communication is inculcated, smoother is the transition. The onus of grooming the GenNext to successfully take over the reins of a family business needs to be well-planned and implemented.

One of the main hurdles faced by the GenNext is that of acceptance; acceptance by employees and in certain cases, acceptance by the immediate and extended family. Often, when the GenNext is given leadership roles even after grooming and training, not many senior and experienced professionals accept them immediately. There are bound to be clashes, which might result in the exit of seasoned professionals.

At times even the best of training and education may not help tackle such situations. The juggle between being accepted in one’s own business and at the same time bringing profits to the organisation can take a heavy toll on the individual.

A strategically designed mentorship programme with a senior leader can immensely beneficial, as not only can they discuss their concepts and areas of concern openly, but also learn from the leadership journey and experiences. Additionally, this will also get them access to the mentor’s powerful network, opening up a sea of opportunities.

The key to maintaining a balance is to be a leader and not just a business owner. At the same time, it is very important to understand that leaders cannot emerge overnight, but rather by developing competencies over time based on experiences and skills acquired along the way.

For a business to remain beneficial, it is good to hone talent constantly through a well-defined leadership programme and have a pipeline of leaders ready to take charge under any circumstances deemed necessary. Although there is no hard-and-fast age group to define the GenNext leaders, it is safe to say that in the next 10 to 15 years, majority of the leaders would be millennials.

To stay relevant and profitable in existence two decades from now, it is wise for the business to invest in grooming and developing the next generation of leaders early on. It has to be borne in mind that millennials cannot be groomed for succession in the same manner as followed by the family since previous generations. The millennial generation functions differently. While one family member might be keen on taking reins of the business, another member might want to focus on the family’s philanthropy.

Millennials value their professional growth and development immensely and hence their grooming has to very specific to their individual goals and aspirations.

Millennials are open to experimentation when it comes to pursuing uncharted business interests and strategies. Including experiential learning elements in the leadership grooming program will strengthen their self-belief in walking the untrodden path adding wings to their dreams.

It can be done either through exposure in one’s own business or by venturing out of the comfort zone and gaining experience at other organizations. This, in turn, will groom them towards gaining mutual trust and respect with their future employees.

Hence, grooming the next generation to walk the fine line in this changing landscape of business structures is vital.

(Amit Patni is Director of Campden Family Connect. Views are his own)