Can you paint a picture for the next generation for the next 50 years with respect to employment opportunities, management and ownership?
In many non-family businesses the trajectory for an employee is clear. When you start at the company you have a good idea of what you need to do to move up the ranks and what positions you will eventually be able to obtain. However, in many family businesses this is not the case and this causes anxiety for the current owners and the next generation. The next generation may even choose to work outside the family business as the opportunities for employment, management, and ownership in the family business are unclear. These items are often not discussed in order to avoid conflict between the current and next generation and between potential successors.
By endorsing a set of Family Business Rules that stipulate the required qualifications to be an employee, part of management, and an owner, the next generation will be aware of what they need to do to move up the ranks. These rules should be properly communicated to the broader family, which will in turn help manage the family’s expectations with respect to the opportunities that can be obtained from the business. It will also instill in the next generations a sense that the family business can offer opportunities if the proper qualifications are obtained and that family members are not entitled to work in the business.
It is important to keep in mind that these management and ownership opportunities are only available thanks to the family business. Therefore, safeguarding the business is extremely important. By implementing rules for the future generations, we can ensure that only competent family members with the right skills can benefit from these opportunities. This will help ensure the continuity of the family business through the generations. By implementing a set of endorsed Family Business Rules, a family business can minimize conflict and can in fact paint a clear picture of the next 50 years for the next generations to come.