Transcript Next Generation Workshop - Family Business Australia

Communication
Leadership
Working in the business
Coping with stress
The objective of this session
Identify ideas & initiatives that
Next Generation family business
members might implement in their
own family business.
“Making succession a success is
the objective of NG”
Ideas and Initiatives
The following ideas/initiatives were
summarised at the end of the Next
Generation Workshop at the 2005
Family Business Australia
Conference.
Communication Ideas and Initiatives:
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Form a family council to create or support a clear vision or mission for
family & business
Incorporate clear procedures to make this happen
Use outside support to implement improved communication protocols– eg
facilitators
Insist on regular communication via meetings (formal/informal) important
to ensure whole family clear on intent.
Take a leadership position with regard to the need for improved
communication.
Rules for communication – eg your family might decide yes or no to business
talk on Sundays
Allow mistakes by other Next Genner’s and the incumbent generation
Ok to agree to disagree
Try new channels of communication - think creatively about the
communication challenge.
Ensure good communication with other NG members and the incumbent
Learn to document and distribute minutes of resolution.
Communication Ideas and Initiatives (Cont):
• Weekly/fortnightly phone calls/conferences between 1/4ly
executive meetings to keep info flowing.
• Keep emotions out of discussions – try to remain clear
headed
• Restructure decision making methods that inhibit
communication (also ensure roles enable this to occur – who
fits best?)
• Understand all types of communication within family & staff
• Have off-site meetings/external reviews to “keep the
business honest” and allow to tackle sensitivity
• Daily lunches as a family
• Understand what each generation wants and needs (don’t
leave it unsaid)
Download Ideas/Initiatives
Leadership:
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Earn respect and credibility from the employees first
Change from a working role to a management role
Ensure leadership style in the business suits the business phase
360 degree review to ensure leadership style appropriate
Seek feedback
Leader needs PASSION
Incumbent needs to clearly set out expectations for next gens leadership
style
Next gen needs to be clear on what they think they can achieve
Assess whether or not you think you are a leader – is the job for you after
all?
Outside support to assess the prospective leaders in the business – are
they right for the job?
Communication – set up family forums (in laws included) to ensure everyone
knows what’s going on
Download Ideas/Initiatives
Leadership:
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Governance plan, constitution, independent board members, junior
board member program to give ownership/responsibility
Process of finding leader needs to be honest – is it actually
someone in the family or external? Utilise outside support to
determine.
Determine if obligation is driving decision – not true desire/ability
Incumbent Gen needs to have a forum to retain some involvement
in the bus after leaving – mentoring?
Established criteria for leadership – to be documented and
communicated widely (eg outside experience)
Implement criteria objectively via review/board of directors when
seeking leader for business
Download Ideas/Initiatives
Leadership:
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Leadership skills need to be continually developed – outside
training and mentoring
Passion & motivation critical
Instill passion and ideas into kids at early age – cultivate early and
give freedom to explore
Equip leader for role effectively
Communicate clearly to all (suppliers/staff/family) to ensure new
leaders role supported & accepted
Work/Life balance issue needs to be acknowledged/supported and
formally agreed upon
Download Ideas/Initiatives
Leadership:
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Identify a plan for future leadership
– Individual needs
– Determine leadership issues
– Develop action plan – eg external coaching
– Communicate in advance – be transparent (no hidden agendas)
– Timeframes/milestones
– Seek constant feedback
– Start now – it’s an ongoing and integral part of the business
Identify which skills are lacking in potential leaders
Create environment & structure business to enable development of family
constitution
Open communication between all parties
Find a way for younger gen to develop skills whilst respecting older gens
needs/styles
Download Ideas/Initiatives
Working in the business:
• Identify forum for next gen to express views and ideas
• Traineeships, or shadowing of older gen, for new gens to
understand the roles better
• Imaginary “sacking” of family members – have them re-apply
for the roles based on skills and correct fit for the role
itself
• Ensure scheduled family meetings to discuss bus and family
issues
• Balance family structure & hierarchy with bus structure to
ensure correct fit
Download Ideas/Initiatives
Working in the business:
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Open communication – meetings/forums
Mentoring process for new family joining bus
Case studies valuable learning tool
External experience “out in the real world” for next gen
very important
• Encumbent to be clear on their role as decision maker
• Allow family members to join bus on own terms but also
understanding the bus needs
• Next Gen important to join a Forum Group to provide
support/advice & help in their journey to join the family
business.
Download Ideas/Initiatives
Coping with Stress:
• Proactive with stress – don’t let it take over
• Compartmentalise stress – deal with it actively to ensure it
is kept under control
• Process to discuss issues – find a respected “outsider” to
help
• Retiring leader should be involved to support new gens
through the process of personal growth in bus.
• Ask questions of your role and seek clarification to
understand intent
• Find ways to handle relationships within and around you
better
Download Ideas/Initiatives
Coping with Stress:
• Confirm and understand agendas, abilities, and roles of all
around to be more clear
• Seek professional support to work better/ cope better
• KPIs, staff performance measures on all around but esp.
yourself so as to be clear on your objectives.
• Clearly understand the business first.
• Respect the need for time away from the business to clear
the mind/soul
• Make everyone accountable
• Provide support and encouragement to both staff and family
to ensure they feel needed and appreciated
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