Next Generation Transition & Development
Helping owners pass the baton to the Next Generation
The transition from a founder or head of a family business to his/her successor(s) is an emotional and challenging moment in the history of a family business. Each generational transition is an opportunity to reflect on the foundations of the business – the vision and guiding principles of the shareholding family, the ownership strategy and governance/management structure. Preparing for this transition in advance is critical to the continued success of the business.
Next Generation transition
We support owning families in planning for the transition by providing an objective assessment of existing family talents and their motivations. Using our comprehensive model for evaluating leadership competency and potential, we benchmark them against the best available internal and external talents, with a view to the different roles envisioned: (active) shareholder? Board member (chair)? (Chief) executive?
The long-term success of a family business largely depends on a successful transition and succession. Ensuring objectivity and meritocracy is vital when it comes to critical appointments within the family. Our clients regularly ask us to evaluate and assess Next Generation family leaders with the objective of identifying appropriate roles for the family members, and to develop plans for preparing these individuals so they can fully realise their potential.
The power of purpose
Generational change in families often leads to the emergence of questions about the long-term purpose of the business or portfolio of assets. Next Generation members tend to be more discriminating and demanding when it comes to defining what should be achieved with a business / portfolio in the long run. When previously the discussions may have been more about balancing the objectives of long-term growth and short-term pay-outs to the owners, now additional aspects come into play: Sustainability, ESG (Environmental, Social and Governance aspects), Impact Investing, and Philanthropy can become part of a quest for a renewed common purpose of the family.
We support you in all important implementation steps, e.g.
- Vison and Purpose development with Next Generation members and facilitation of inter-generational discussions.
- Evaluation and assessment of Next Generation members.
- Preparing Next Generation members for their new roles (as shareholders, Board members, executives, etc.).
- Development of career plans and personal development plans.