Time's Ticking: The Real Reason Family Business Leaders Can't Wait to Develop Next Gen Leaders
Dec 02, 2024
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The Hidden Cost of "We'll Get to It Later"
I had a conversation last week that stopped me in my tracks. A client said, "I know we have work to do with our Next Gen, but we just have to wait for things to slow down before we can focus on that.” I've heard this countless times over my career, but when markets shift overnight, and tech reshapes entire industries, this thinking isn't just outdated – it's dangerous. It’s bad timing.
Here's the reality: Family businesses generate about 70% of our GDP, yet many won't survive to see the next generation take the helm. Not because they lack talent or resources but because they wait too long to develop their future leaders.
Why 2025 Is a Critical Turning Point for Family Businesses
I predict both incredible opportunities and new challenges for family business leaders. The market is changing faster than ever. Digital transformation isn't just a buzzword anymore – it's reshaping how we do business every single day. Your next generation of leaders inherently understands these shifts. They grew up with technology. They are well-educated. They think differently about customer relationships. Like every Next Gen cohort, they hope to bring fresh perspectives to age-old problems.
The Silent Struggle of Next-Gen Leaders
No one wants to see talented Next Gen leaders slip through the cracks. They're eager to contribute.
The isolation these Next Gen leaders feel is real. Just last month, I worked with a third-generation leader who felt completely alone in her struggle to modernize her family's manufacturing business while honoring its traditions. She was relieved to discover other Next Gen leaders facing similar challenges through our peer groups. Sometimes, just knowing you're not alone can make all the difference.
Breaking the "We're Fine Right Now" Mindset
Let's talk about what this means for your business. You might be thinking, "We're doing fine right now." And maybe you are. But consider this: Your competitors aren't standing still. They're actively developing their next generation of leaders, embracing new technologies, and adapting to changing market demands. Every day you wait to invest in your future leaders is a day you fall behind.
Practical Steps for Developing Tomorrow's Leaders Today
So what can you do today?
First, start by having honest conversations with your Next Gen leaders. Ask them about their vision for the business. What trends are they seeing? What ideas have they been hesitant to share? You might be surprised by their insights. If you'd like a list of opening questions, email me at [email protected].
Next, create opportunities for them to learn and grow. This doesn't mean immediately handing over the reins. Instead, give them meaningful projects where they can apply their unique perspectives while learning from experienced leaders.
The Power of Peer Connection in Leadership Development
Most importantly, don't let potential leaders navigate their journey alone. We always invest in our loved ones! Connect them with peers who understand their challenges. Individuals always fail… but we all grow when we are part of teams of successful people. The research is clear: Peer Groups are the most effective way to accelerate leadership development. The power of shared experiences and collective problem-solving simply can't be overstated.
I've seen the difference these three investments can make. Family business leaders who actively develop their next generation don't just survive – they thrive. They're more innovative, adaptable, and better positioned to preserve their legacy while building for the future.
For the top 10 behaviors to practice, based on my research, get a copy of my book- The Success Playbook for Next Gen Leaders.
Your Family Business Legacy Depends on Today's Decisions
Here's what I know for sure: The family businesses that will excel in 2025 and beyond are the ones taking action now. Action leads to learning. That’s why the name of my consulting business is Action Learning Associates. Our team is the premier provider of 360 Assessments and Next Gen peer groups for Family Business leaders.
See details at www.AssessNextGen.com, www.NextGenPeerGroups.com and www.Action-Learning.com
Smart leaders don’t wait for the perfect moment… because they understand there is no perfect moment. You can invest in your future leaders today, creating competitive advantages that will last for generations.
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