Recommendations for current leaders
- Setting and promoting clear values
- Providing opportunities and embracing change
- Effective and direct communication
Setting and promoting clear values
For a family business, more than any other, values are a source of success, commitment, and longevity. The changing business environment and stakeholder expectations with the profit concept may unconsciously impact the family business’ values when running a business. To have real and tangible values, work closely with the NextGens to set out clear values and leverage these values to create a competitive advantage to secure a lasting legacy that’s fit for the future.
Family firms also need support from flexible governance structures and an open-minded board prepared to encounter changes. So, help develop an effective governance structure that creates a coordinated way for all stakeholders to be involved in decisions, and activities promoting meaningful participation in sustaining commitment to the family’s legacy and unity.
Providing opportunities and embracing change
Each generation has a different perspective. It’s the current leader’s role to find opportunities for future leaders to set up and manage an internal business and let them work on their business initiatives with proper support and mentoring. Share the lessons of your successes, but more importantly, the lessons of your failures. Help them develop their own leadership qualities.
For a smooth transition, it’s best to have a mindset that is flexible and focussed on ensuring the business remains sustainable. Provide options for them to develop their experiences and knowledge, not making them feel forced into anything. Be open to new technologies and innovations. Look for ways to incorporate them into the family business.
Effective and direct communication
In Asia, communication between generations is less direct than in Western cultures. But the younger generations in Asia are becoming more outspoken and are demanding clearer answers. So, current leaders should gradually instil a culture of open and direct communication. Listen to the NextGen’s ideas and initiatives. Also share best practices and feedback with them. Be honest and share as much information as possible with the future leaders to help them access the inner circle. Communicate clearly what you expect from the NextGens. Start this process early in a young leader’s career because the culture of openness will help create a common strategy understood by both generations.
Contact us
Sinsiri Thangsombat
Entrepreneurial and Private Business Leader, Assurance Partner, PwC Thailand
Tel: +66 (0) 2844 1000
