Navigating the Generational Gap: Bridging the Divide in Family Businesses

Family businesses are unique: they often span multiple generations, each with their own perspectives, values, and priorities. Navigating the generational gap can be challenging, but it is essential for the long-term success and sustainability of family businesses. Here are some strategies for bridging the divide in family businesses.

1. Understand Generational Perspectives
   Each generation has its own unique perspectives and values that shape their approach to business. Understanding these perspectives is essential for bridging the generational gap. To illustrate:
   
   Baby Boomers: Value hard work, loyalty, and stability. They tend to be hierarchical and prefer traditional business models.
   
   Gen X: Value work-life balance, independence, and flexibility. They tend to be skeptical of authority and prefer a more collaborative approach to business.
   
   Millennials: Value innovation, social responsibility, and work that aligns with their personal values. They tend to be tech-savvy and prefer a more informal and flexible work environment.
   
   

2. Work Outside the Family Business First
   Working outside the family business first can help bridge the generational gap. This allows younger family members to gain experience and develop their own perspectives and skills before joining the family business. It also helps to build credibility and respect among non-family employees. It’s not uncommon to create a policy that details the “outside” work and experience before assuming a role in the family business.
   
   

3. Tell the Story of the Family Business
   Telling the story of the family business can help to bridge the generational gap. This works to both create a common history that each family member can remember with pride, as well as build a common vision of the future that both generations can work toward. It is an anchoring point for times when generational differences may cause conflict, and can be a binding agent across generations to align on the history, mission and underlying vision of the business.
   
   

4. Focus on Fairness
   Fairness is essential for maintaining family harmony during business succession. Establish clear rules of entry and exit, including how business ownership should be handled and how to ensure fairness and prevent or manage conflict constructively. This can help to ensure that all family members are treated fairly and that there is a sense of equity and documented path in the succession process.
   
   

5. Seek External Expertise and Support
   Seeking external expertise and support can be helpful in bridging the generational gap. Work with advisors, consultants, or mentors who have experience in family businesses and can provide guidance and support throughout the succession process. Their insights and perspectives can help to ensure that the succession process is fair, transparent, and aligned with your family's values and vision.
   
   

6. Prioritize Emotional Ownership
   Emotional ownership is essential for bridging the generational gap. This means recognizing the emotional aspects of family business ownership and succession, including the complex relationships and dynamics that can arise. Prioritize open and honest communication, empathy, and respect for each family member's perspective and experience.
   
   

In conclusion, bridging the generational gap in family businesses requires understanding generational perspectives, working outside the family business first, telling the story of the family business, focusing on fairness, seeking external expertise and support, and prioritizing emotional ownership. By following these strategies, you can navigate the complexities of family business ownership and succession with confidence and clarity.