Generational Transitions: Preparing the Rising Generation to Master the Challenges of the Future

Generational transitions in most families now take place every 30 years or so, given modern family patterns.  Any such change initiative will benefit from the family having established a firm foundation in unifying culture, effective governance and leadership succession plans and family communications long before the three phases of transition and succession begin:

1. Phase I: Where the current leadership is in place and NextGen members are preparing for their future roles
2. Phase II: Where the current leadership generation are still present and engaged in some areas within the family enterprise, but the process of transitioning to new ownership and leadership has begun, a phase of both stepping up by NextGen and stepping down by retiring members of both generations
3. Phase III: When the NextGen are in full control of all ownership ad leadership responsibilities

Managing these changes well will require family leaders to follow best practice, addressing all of many issues involved in leadership and succession.  In some areas, ‘best practice’ is not enough, or already outdated in the accelerating pace of change that characterize modern life; in this case it is the development of general capabilities and sustaining values, supplemented by creative ‘next practices’, that will be required to master the challenges of the future. Successful transitions depend heavily upon the preparation of the rising generation to meet the challenges of the future.  A comprehensive education and development of the full portfolio of both the ‘hard’ and ‘soft’ skills necessary to understand and resolve complex issues will be required.  The pressures from within and outside the family enterprise will create a ceaseless flow of challenges, some expected and some not, for which all members of the rising generation need to be fully prepared.

Modules

1. Defining an approach to Generational Transition for all three phases of transitions:  priorities, timing, expected  evolution and challenges (internal and external)
2. Outline of plans for Generational Transition and Leadership Preparation
3. Assessing family needs and individual capabilities and interests
4. Designing and implementing individual development plans: education, experience, capabilities, ‘strategic career pathing’
5. Creatin and implementing an review and annual personal development plans
6. Ensuring ‘emotional readiness’ of future leaders
7. Long term planning, development and support: mentors, advisors and a personal ecosystem for success

Documents

• Generational Transition Strategy Planning Document: Integrated Three-Phase Transition Plan (with clear roles for both rising and retiring family members)
• Capability gap analysis vs needs at each stage of career and phase of transition
• List of current and expected future challenges and required individual skills, capabilities and group approach to resolve them
• Strategic career pathing plans and support in  the family business and other aspects of the family enterprise
• Individual and group development plans
• Long term ecosystem and objectives for engagement
• Performance Appraisal and Personal Development Plans, a Mentoring Program, ”20-second” and ”20-year” Succession Plans