Is the family dynasty in decline?
In last week's BRW magazine there is an article which suggests that business owners need to consider selling as a viable forward strategy as the next generation are not interested in taking on their parent's business.
The article concludes that a recent study, The MGI Family and Private Business survey 2006, published by RMIT reflects the pessimism about passing the business to the next generation comes form a perceived lack of ineterst from younger members of the family. In my experince, this is a direct result of the business founders failure to move their belief system and understand the ever changing management dynamics in the year 2006.
Much of the hype about generation X and Y is true when it highlights their different attitudes and aspirations. It's not that they don't want to take over the family business, it's that they don't want to operate under the same mamangement culture over the past. The Baby Boomers have to accept that their sons and daughters do not think the same and have been exposed to a far greater range of education and global experiences that they were.
I have often had to listen to owners of successful business telling how the next generation don't have the same work ethic, how they have everthing handed to them on a plate etc etc. What a load of rubbish. It's 2006, not 1975. I have seen many siblings working within a family business who would do a far better job of taking teh business to a higher level of performance, if only the "Old Man" would get out of the way.
I believe the BRW article missed the point. The researchers should get out from behind their desks and work with the next generation at the coal face and really understand the day to day issues. They are well educated, prepared to work hard but are more inclined to enjoy a better life balance than their parents and are smarter at managing people to engage them and to create effective teams.
The article concludes that a recent study, The MGI Family and Private Business survey 2006, published by RMIT reflects the pessimism about passing the business to the next generation comes form a perceived lack of ineterst from younger members of the family. In my experince, this is a direct result of the business founders failure to move their belief system and understand the ever changing management dynamics in the year 2006.
Much of the hype about generation X and Y is true when it highlights their different attitudes and aspirations. It's not that they don't want to take over the family business, it's that they don't want to operate under the same mamangement culture over the past. The Baby Boomers have to accept that their sons and daughters do not think the same and have been exposed to a far greater range of education and global experiences that they were.
I have often had to listen to owners of successful business telling how the next generation don't have the same work ethic, how they have everthing handed to them on a plate etc etc. What a load of rubbish. It's 2006, not 1975. I have seen many siblings working within a family business who would do a far better job of taking teh business to a higher level of performance, if only the "Old Man" would get out of the way.
I believe the BRW article missed the point. The researchers should get out from behind their desks and work with the next generation at the coal face and really understand the day to day issues. They are well educated, prepared to work hard but are more inclined to enjoy a better life balance than their parents and are smarter at managing people to engage them and to create effective teams.
posted by Bill Winter at 8:09 AM
1 Comments:
I concur with your contention Bill. As part of a large business, family owned, the current [acting chairman] the son of the owner has put the business on the straight and narrow, whilst improving bottomline to the tune of 120% increase in EBITDA, in one Business Unit.
I know countless other siblings that acomplish the same feats.
I am a recent reader to your blog and take a great interest in what you have to say about the family unit in todays business world.
Rgds
Paul Kremer
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