Once you enter the transition journey, you must consider whose vision of the future counts the most, that of the current leadership or the next generation.
At a recent family business strategic planning workshop, one of the next generation leaders asked the existing leadership team, ‘What is your vision for the future of the business?’ After a few moments of silence, the answer was provided: ‘Our vision of the future doesn’t count anymore. You have asked that we allow you, the next generation, to take over leadership. “What’s your vision?” is the important question, and we expect you to answer that question today.’ And the room descended into silence again.
Was that a reasonable question and fair response and expectation? I think the answer is ‘yes’ but the reality is that the truth lies in the mediated vision that the two leadership teams will need to arrive at to allow the transition to move forward.
In any family, the business that has been built today is an outcome of the vision and goals that the existing leadership team have held and sought to execute. It is the compound effect of their efforts over the last, say, 40 years. But as we should all understand, what built that business over the last 40 years is unlikely to be the same things that will continue to build it for the next 40 years.
The new leadership team must be able to craft their own vision of where the business needs to grow for it to continue to be successful and ready for transition when the next generation of family leadership emerges. To do this, they must be prepared to step into what already exists ‘warts and all’ and then slowly begin to mould it into the future business, because:
- Without the next generation’s own vision, the business will likely falter as yesterday’s success will have limited life.
- In stepping into the existing business, they must accept what is there and it is unlikely that they can just cherry pick the exciting pieces and leave the rest to someone else.
- The future requires time, and, therefore, slowly is often the best pathway for change, as rushed changes usually falter.
So for the next generation, their vision must embrace the past and walk it forward into the future they envisage, allowing time for change to occur.
This is not easy from a cold start and, therefore, the existing leadership team will likely need, and want to, support the creation of that new vision for the future blending the old with the new.
Active Knowledge Question:
- How are you supporting the next generation to craft their future vision of the business so that your experience is blended with their passions?
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All the best in the success of your business,
Richard Shrapnel
