COACHING TO FAVOR GENERATIONAL PASSAGE IN FAMILY BUSINESSES
Did you know that Italy is among the European countries with the highest number of family businesses?
The family business is often described as the oldest and most widespread model of economic organization.
According to estimates, in our country alone, there are about 784,000 family businesses and, more importantly,
these businesses generate 70% of job opportunities.
The family business in Italy is the daughter of our culture and, therefore, of our tenacity, dedication, great industriousness, but also of our individualism. It is natural to consider the company as an extension of one’s own family and not to consider the two entities as clearly separate from each other.
The two worlds are in themselves incompatible and antithetical. By culture, however, there is a tendency to apply the logic of the family in the company and this also generates very serious problems, above all in the stages of generational transition .
In a family business that has ambitions of continuity and development, the relationships between family members, the rights and
duties of each must be regulated in a professional manner, as would be done with partners who are not members of the family.
The problem arises when the leadership has to be transferred...
" In the family you are relatives, in the company you are partners "
The problem of generational change
Did you know that only 32% of all family businesses achieve an average life span of two generations? Oh yeah, sadly that’s the way it is!
And not only that… the transition to the third generation is further reduced to a mere 15% success rate, while maintaining a viable fourth generation family business (or beyond) is achieved only 3% of the time.
As you well know (and I surely imagine you too are experiencing this situation, since you are here on this page reading), the intensity of family relationships decreases over time and with the concept that individual members have of “family ” .
INITIALLY, WHEN THE COMPANY WAS BORN, THE FAMILY MEMBERS ARE UNITED BY A VERY STRONG BOND, HUSBAND-WIFE OR FATHER-SON. THERE IS NO DOUBT ABOUT THE MEANING OF “FAMILY”.
How to facilitate the transition in the family-run business?
Over time the company grew, the family evolved and the new generation appeared to assume roles in the company.
There is always the central point of reference represented by the “old” generation. Also in this case the link is strong and the concept of “family” is unambiguous.
The picture changes when the children form their own new families. The sense of family becomes ambiguous and the alignment between the needs of the original family and the needs of the new nucleus is lost.
THE SITUATION CHANGES RADICALLY WHEN NEW FAMILIES HAVE THEIR OWN CHILDREN.
Senior leader and junior leader: foster communication between different generations
The best way for you to avoid potential conflicts between families is to involve future generations in family business discussions from an early age.
Most of the families I’ve looked after in the past didn’t even bother to make sure the next generation understood and appreciated the values and work ethic necessary for the success of the family business.
When the family starts involving them from an early age, it starts setting them on the
right path to making good choices for the future of the company.
The sons' company is the company of the future
Another of the most common problems of a family business is that one always tries to work under an old vision of the founder.
It is essential for your company to develop a good process and a solid plan for the succession, to plan the generational transition.
If you want the family business to last from generation to generation, you will necessarily need to eliminate your limiting beliefs and develop a completely new and relevant vision for future generations of the family…
A FAMILY BUSINESS IS LIKE AN ORGANISM...
In a constantly evolving world, the company needs to continue to grow and evolve to meet the needs of current and future owners and customers… But for this to happen, it is essential that there is communication and dialogue in the family, a very important point, but which I often see missing in many family businesses!
Your business doesn’t have to be a source of frustration and anxiety as it often is for so many families.
Disagreements in the family can lead to estrangement in family relationships, which often last for generations.
It doesn’t have to be like that!
It is the job of the family leader to have the courage and ability to facilitate productive conversations within the family and the business.
Most family leaders are reluctant to open Pandora’s box and therefore never give the family and the company the important opportunity to refresh their vision.
I know what you’re thinking..
you’re afraid that once you start a journey, and it doesn’t go where you want it to go, you won’t
be able to go back.
It may be a legitimate concern but, at the same time, not
giving your business a new vision can cause big problems.
Don’t wait too long to plan the generational transition and nominate
the future leader of your family business.
Too many families “wait, wait, wait” hoping that
somehow the right solution will present itself.
Too often procrastination and a family’s fear of the unknown causes
the family and business to get stuck in a neutral situation with
an uncertain future.
GOOD VISION IS THE RESULT OF MANY CONVERSATIONS, SELF-REFLECTION, AND COLLABORATIONS WITH OTHERS.
Think of developing communication skills as a priority in your family business.
You really can’t open a conversation about the new corporate vision, set clear expectations for everyone, if you can’t communicate.
You must do it!
There is a lot at stake – you owe it to yourself, your family, your employees and key stakeholders.
Be a true leader and start the journey!
THREE PROVEN TIPS FOR RUNNING A SUCCESSFUL FAMILY BUSINESS
From my experience gained over the years, I would like to give you three proven suggestions to protect the family-business system and to manage the delicate phase of generational change in the family business:
- DON'T BRING WORK MATTERS HOME: Avoid discussing (or arguing) about work matters at the dinner table. A good leader understands that creating a clear separation between work and family is essential to running a thriving business and creating a more relaxed, balanced and enjoyable personal life.
- ACCEPT CHANGE: Learn to accept change, keep your mind open and eliminate your limiting beliefs. When children join the business, they may have their own ideas. If you encourage the integration of new ideas with old proven work habits, you might be pleasantly surprised. Change may be just what you need to grow your business and could help you build strong working and interpersonal relationships with your potential successors.
- TRUST A RELIABLE BUSINESS COACH : Running a family business can be complex. Hire a trusted, external professional who can provide you with insight, impartial advice and key tips on leadership development, helping you and your family members become more effective.
BUT WHO IS A "BUSINESS COACH"?
In everyday life, we call them “coaches, teachers, friends”.
They are people who lend their ears and
interest to our personal development, who encourage us to move forward, and help us to believe a little more in our goals, and above all to achieve them.
At work, we call them "Business Coaches".
They are experts, mentors of entrepreneurship, who help us navigate even in
dangerous and deep waters.
They make sure that entrepreneurs stay out of the way, knock them
down when they get in the way, and that their business or
career plans and dreams are always turned into solid reality.
Well, a Business Coach is just the solution for your family business!
My services differ from others in the field for quality and results .
They help you effectively manage your family and work life and
teach you the skills needed to deal with problems
and resolve conflicts.
A coach can help you navigate the minefield of creating a succession plan, a generational handover
an important and delicate phase and unfortunately often neglected in family-run businesses.
WHO IS MATTEO ROCCA?
I am a member of an entrepreneurial family, I have worked for more than 20 years
in industrial and commercial companies , I know what it means and how to work.
I know very well all the dynamics and problems
present in family businesses.. because I have experienced them.
To date, with my Coaching courses, I have helped and continue to
help entrepreneurs and professionals achieve results thanks to new
tools, methodologies and skills.
I offer Coaching services for family businesses to help manage
a SME company in a constructive way, in which everyone understands rules, roles and responsibilities,
makes decisions based on know-how and not on emotions, has
transparent, clear and direct communication.
WOULD YOU LIKE TO KNOW MORE'?
I will actively listen to your problems, personal and professional goals, I will offer you
the opportunity to improve your situation to bring more results
to the company, family and professional fulfillment.
