Transcript chapter 3.ppt

Chapter 3
Third Leadership Imperative
The Next Generation
Family Business, First Edition, by Ernesto J. Poza
Copyright © 2004 South-Western/Thomson Learning
Leadership Vision
The next-generation leader provides a vision
that rejuvenates the business and makes it
competitively fit in the succeeding generation.
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Successful Successors . . .
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Love the business and know it well
Know their strengths and weaknesses
Want to lead and serve
Are guided by earlier generation, advisors,
and board of directors with outsiders
Have good relationships with other members
of successor team
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Successful Successors . . . continued
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Can count on nonfamily managers to
complement their skills
Have controlling ownership or can lead through
allies
Have earned respect of nonfamily employees,
suppliers, customers, and other family members
Have personal skills and abilities that fit strategic
needs of business
Respect the past and focus energies on future of
business and family
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Training the Next Generation
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Heirs should learn early that family business
means stewardship and responsibility
Training suggestions
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Allow young family members to work for a salary
Provide youngsters with expense account to teach
financial responsibility
Compensate young family employees at market
rate and provide performance reviews
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Successful Sibling Teams . . .
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Understand interdependence and willingly
subordinate as necessary
Understand that their skill at collaboration
results in win-win or lose-lose
Appreciate how their abilities and skills
complement others’
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Sibling Teams . . . continued
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Have a decision-making process in place
Manage interdependence by making goals,
roles, relationships, ground rules, and
feelings explicit
Feel as if they would choose their siblings as
partners, even if they weren’t family
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Cousins Consortium Members . . .
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Depend on a strong legacy because of
greater distance between family branches
Maintain a balance of power among family
branches
Do family business through forums, retreats,
assemblies, councils, etc.
Have many opportunities for family
participation
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Leadership Responsibility
“Each generation has the responsibility of
bringing to the business their own vision for the
future of the business.”
—Samuel Curtis Johnson III, Retired Chairman,
S. C. Johnson, a Family Company, Inc.
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