Recently, I have been delving into the psyche of dealing with the Millennial generation in our businesses. In my discussions with clients and industry colleagues, a topic that has comes up regularly is estate and succession planning with Millennial family members. Specifically, something we have been encountering in traditional business succession planning is the non-traditional mindset of the Millennial. The primary issue that surfaces is the anomaly of dealing with a Millennial.
In a past article for the Hub, I wrote about the unique way we need to market to Millennials. The mantra: educate and inform, don't sell. The same concepts apply to family businesses where the path to succession leads to a Millennial family member. Here are some concepts and some topics for discussion for business owners who are considering transferring control to a Millennial family member.
Understand the Millennial
A common misconception is that business owners think their millennial successors actually want to inherit the family business. In most businesses, owners traditionally have Millennial family members start on the ground floor because they insist that their family member learns all aspects of the business and works from the bottom up.
However, the first concern of the Millennial “me” generation is to know how their current job integrates with their own long term goals. Despite a business owner’s best wishes, this may or may not involve the family business. Helping Millennials develop stimulating action plans to help them advance to their next leadership role in the family business can be both engaging and rewarding.
Transparency about succession
Instead of avoiding the elephant in the room, talk about succession early on. This lowers tensions and may spark greater interest in the family business as a career. Transparency will open the door to dialogue about future visions and management styles. It will create opportunities for current business leaders to mentor and train their successors.
Be receptive to innovative ideas
Opening up to the rising Millennial generation’s innovative ideas can build trust and create new opportunities for family businesses. Discussing new ideas before the transition occurs can give current leadership a chance to merge incoming ideas with their existing business values.
Take the time to train and mentor your future successors
A delicate balance must be found between mentoring the next generation and creating a dependence on guidance from elders. It’s wise to let Millennial family members make and learn from their own mistakes. A training program should be developed that will boost their confidence and capability when it’s their turn to lead. Employees in a family business are more likely to accept their Millennial bosses if they have been visibly and reliably learning the business rather than suddenly jumping in to take the helm overnight.
Parcel out responsibilities as you prepare to leave
As your transition date nears, slowly begin assigning your duties to your Millennial successor. Clearly distinguish which of you should handle specific responsibilities until a point at which they have taken over all the duties and you are ready to hand over the reins. Employees must be kept aware of the successors new duties, especially as the situation affects them.
Actually leave the company when you say you will
Family dynamics may cause children to be reluctant to assert their own power. Having the old boss on the job can detract from the authority of the new leader and confuse employees. New Millennial leaders need time to develop their own management style and vision for the business, gaining respect without standing in the shadows of their predecessors.
Transition of the family business to a member of the Millennial generation is not an easy task. It involves long-term strategic planning and their involvement in all steps of the migration. It is important that the successive owner actually listen to the incumbent family owner and respect their input. Remember, until you walk out the door you are the one vested with the decision-making but having an active ear makes the process must more palatable. Its about being pro-active as opposed to reactive. It’s about Keeping Life Current.
- Log in to post comments