Family business often
encounter tension when a new generation comes on board and brings with them new
ideas and ways of doing things. While
continuity is important, change is also unavoidable with the passage of the
time.
The old say ‘I have eaten
more salt than you’, implying that the older generation always knows better;
but this mindset is not always helpful for business that is undergoing
transition. It is important for the new
generation to try their best to adapt and carry on the business. It is likewise just as important that the
first generation accept that the younger one will bring about change.
In family business, the
older generation should expect their children to come back after studies, with
changes. But, knowing that, it’s not
that easy for them let the children take risk in changing things. It is even harder for the children to balance
between being a successful entrepreneur and a good son.
In a traditional family
structure, parent take on a more authoritative role, while children are
expected to obey. This rule can’t be
applied to business. If the younger
generation is only taught to follow rules, than what is needs is really just
employees, not a generation who will succeed in business. The older generation must accept the fact
that they want them to be better, thus accepting the fact that they are going
to change the family business. Older
generation must take to guiding and not demotivate them.
The transition can be made
smoother by allowing their children to explore new ideas and to innovate and
improve the business. They have to
understand that young people like to talk about ideas, so give them
opportunities to test out their ideas. Do
not always turn down their ideas as they will lose the motivation to work. To avoid conflict between the two generations,
it’s best to ask them to justify their ideas and calculated risks.
It’s important for both
generation to
·
Share knowledge and experiences as both have expose in different areas
and ways of doing things,
·
Be receptive toward what the young ones have to offer
Shared
from article by:
Joy
Lee
On Family Business: PKT
Logistics Groups
Talking About
SMEBIZ, Monday 18 January
2016
