CommunicationLeadership Working in the business Coping with stress

The objective of this session Identify ideas & initiatives that Next Generation family business members might implement in their own family business. “Making succession a success is the objective of NG”

Ideas and Initiatives The following ideas/initiatives were summarised at the end of the Next Generation Workshop at the 2005 Family Business Australia Conference.

Communication Ideas and Initiatives: Form a family council to create or support a clear vision or mission for family & business Incorporate clear procedures to make this happen Use outside support to implement improved communication protocols– eg facilitators Insist on regular communication via meetings (formal/informal) important to ensure whole family clear on intent. Take a leadership position with regard to the need for improved communication. Rules for communication – eg your family might decide yes or no to business talk on Sundays Allow mistakes by other Next Genner’s and the incumbent generation Ok to agree to disagree Try new channels of communication - think creatively about the communication challenge. Ensure good communication with other NG members and the incumbent Learn to document and distribute minutes of resolution.

Communication Ideas and Initiatives (Cont): Weekly/fortnightly phone calls/conferences between 1/4ly executive meetings to keep info flowing. Keep emotions out of discussions – try to remain clear headed Restructure decision making methods that inhibit communication (also ensure roles enable this to occur – who fits best?) Understand all types of communication within family & staff Have off-site meetings/external reviews to “keep the business honest” and allow to tackle sensitivity Daily lunches as a family Understand what each generation wants and needs (don’t leave it unsaid)

Download Ideas/Initiatives Leadership: Earn respect and credibility from the employees first Change from a working role to a management role Ensure leadership style in the business suits the business phase 360 degree review to ensure leadership style appropriate Seek feedback Leader needs PASSION Incumbent needs to clearly set out expectations for next gens leadership style Next gen needs to be clear on what they think they can achieve Assess whether or not you think you are a leader – is the job for you after all? Outside support to assess the prospective leaders in the business – are they right for the job? Communication – set up family forums (in laws included) to ensure everyone knows what’s going on

Download Ideas/Initiatives Leadership: Governance plan, constitution, independent board members, junior board member program to give ownership/responsibility Process of finding leader needs to be honest – is it actually someone in the family or external? Utilise outside support to determine. Determine if obligation is driving decision – not true desire/ability Incumbent Gen needs to have a forum to retain some involvement in the bus after leaving – mentoring? Established criteria for leadership – to be documented and communicated widely (eg outside experience) Implement criteria objectively via review/board of directors when seeking leader for business

Download Ideas/Initiatives Leadership: Leadership skills need to be continually developed – outside training and mentoring Passion & motivation critical Instill passion and ideas into kids at early age – cultivate early and give freedom to explore Equip leader for role effectively Communicate clearly to all (suppliers/staff/family) to ensure new leaders role supported & accepted Work/Life balance issue needs to be acknowledged/supported and formally agreed upon

Download Ideas/Initiatives Leadership: Identify a plan for future leadership –Individual needs –Determine leadership issues –Develop action plan – eg external coaching –Communicate in advance – be transparent (no hidden agendas) –Timeframes/milestones –Seek constant feedback –Start now – it’s an ongoing and integral part of the business Identify which skills are lacking in potential leaders Create environment & structure business to enable development of family constitution Open communication between all parties Find a way for younger gen to develop skills whilst respecting older gens needs/styles

Download Ideas/Initiatives Working in the business: Identify forum for next gen to express views and ideas Traineeships, or shadowing of older gen, for new gens to understand the roles better Imaginary “sacking” of family members – have them re-apply for the roles based on skills and correct fit for the role itself Ensure scheduled family meetings to discuss bus and family issues Balance family structure & hierarchy with bus structure to ensure correct fit

Download Ideas/Initiatives Working in the business: Open communication – meetings/forums Mentoring process for new family joining bus Case studies valuable learning tool External experience “out in the real world” for next gen very important Encumbent to be clear on their role as decision maker Allow family members to join bus on own terms but also understanding the bus needs Next Gen important to join a Forum Group to provide support/advice & help in their journey to join the family business.

Download Ideas/Initiatives Coping with Stress: Proactive with stress – don’t let it take over Compartmentalise stress – deal with it actively to ensure it is kept under control Process to discuss issues – find a respected “outsider” to help Retiring leader should be involved to support new gens through the process of personal growth in bus. Ask questions of your role and seek clarification to understand intent Find ways to handle relationships within and around you better

Download Ideas/Initiatives Coping with Stress: Confirm and understand agendas, abilities, and roles of all around to be more clear Seek professional support to work better/ cope better KPIs, staff performance measures on all around but esp. yourself so as to be clear on your objectives. Clearly understand the business first. Respect the need for time away from the business to clear the mind/soul Make everyone accountable Provide support and encouragement to both staff and family to ensure they feel needed and appreciated

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