DEPEND ON THE GENERATIONAL STAGE OF
TRANSITION
OVERALL , THE ISSUES
for the future, because things have gone wrong in the past and they have reflected and thought, how can we better our next transition of ownership and leadership? The other half present in crisis, their level of discomfort is very high. Something has erupted and they need help. Overall, the issues depend on the generational stage of transition. If it’s a first generation to second generation business it’s about modernising and professionalising the business as it grows and scales.
So director training, better governance, proper boards, and business plans are my focus. In businesses that are getting older—the third and fourth generation—you are coming into thinking more about responsible ownership and wealth planning. Often, the gap between the owners and the leaders widens as you come down through the generations. So the need focuses on setting up ownership forums, improving family communication, and setting up committees for a family office, and family fun. Irrespective of the age and stage and size of the business, developing the relationships between family members, as co-owners and co-leaders, is very important.
What did you learn from the succession process at Mactaggart and Mickel? I think it is that push- pull point on succession, and how can you create meaningful roles for older generations, so if they feel they are being pushed by the incoming younger generation, they are equally focused on creating something significant to pull them as they exit. My father was the first Mickel director to ever leave our business alive and I watched him plan his own
succession amazingly well. He back-filled his executive roles, set out his vision for the board, and thought about what was next. As he exited the chairman role of our business, he took on the chairmanship of the family trust which has been going since 1970— the Mickel Fund. He is 73 and is now off doing a boat building course. He managed his exit really well, and I’m so proud of him. Supporting an exiting founder or older generation member —typically dad— in finding out what he is really passionate about in his life, is an area requiring massive focus. How do they define themselves beyond the business? That requires a lot of empathy, and probably about 5 to 10 years of support. All these things that get [leaders] into business— entrepreneurialism, resilience to change, innovativeness, a risk appetite—can also be the things that hold them back when it is time to transition.
What can older generations do when younger family members have no interest in joining the family business? When the older generation have thought about what makes the business attractive to the next generation and have clarified what roles might be available to them, or any opportunities for entrepreneurship, there tends to be much more engagement. I like this new concept of reverse mentoring: The idea that the next generation can mentor the older generation.
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