4 ways that many 3rd generation owners of the company fail

Keep the family business both "in business" and "in family" after another generation is more trickier than most people realize – even those who try to make such things happen. For example, 40 percent of family businesses succeed in another generation. This is not surprising statistics; not any business venture has "feet" to make the second generation successful, but many do. It is strange that only thirty percent of these good-looking companies are transferred to the third generation.

This phenomenon is commonly known as "third generation problem." This is a complex set of challenges facing the grandchildren of employers who decide to take the helmet of a company that was running long before they were born. There are four main groups of challenges that the third-generation business owner needs to cross over to actively work successfully.

Way 1: "If I Had My Way …"
An aggressive opinion of the family administrator can very effectively ensure successful transfer of leadership. For the first generation of family companies, the message is clear. Within the family, people know who is involved with the company and who is not. However, when the family is built up, she gains more complexity by successful members and more members of the family members. As a result, more of them get very strong opinions about "how things should do." Some of them can be very vocal about it.

If the younger generation can not fully support business conversion, it can be fatal for the company. However, the younger generation needs a vision and conviction to build strong solidarity about change. Many times, the younger generation has at least some formal business education; But all too often these university programs are based on theoretical theories – not real world work. In the real world, the chosen university degree is not magic; Complementary training in compelling methods could be a very wise move – content that they do not teach at universities. The great cousin Ida could have been completely awesome when the heir appeared five years old; yet she has to be convinced to lend her stern, grizzled support.

Way 2: "But we've always done it this way!"
Planning speed within the company can be both good and bad; The taste is to figure out which behavior is holding things together … and who hold things back. Resistance to technology can be a common problem, but technological innovation can also be a disturbing and monetary mess. Third generation business owner needs to practice some objectivity to analyze business; Consultants and mentors are one way to achieve this. Another is having specialized training in business analysis. Unless the problem is obvious – "What do we mean we do not have an email?" – the general rule is "no sudden movements." Check and consult yourself; and when the movement becomes clear, the act definitely.

Another momentum: Changes in the market can have a radical change in the industry around the company. For example, companies could start fate with peagers, but those companies that did not follow mobile market developments suddenly came up with customers that were fast growing and too much of money bound to go wrong. These types of estimates take a very close eye and obvious market information on the market. Just considering what has worked in the past will always work in the future is a safe way to surprise.

Way 3: "It will not work that way."
Modified resistance within the company is almost "given"; but this is something a little different. Often it's senior employees involved in day-to-day operations – the units that the transformation team needs to rely on – it may be the largest member. They can not even be, just over the years, they have become experts in why things are "not possible" instead of calculating ways to make good changes. Other employees mask long-lasting pessimism as so-called suspicion and can reduce effective transition with poor attitude and water-cooler gossip. Some of these bad operators must discover and manage with continuing education or other education. Some … may just have to go. Henry Ford once said, "If you think you can or you think you can not, whether you're right." Good third generation transition needs to be all on board.

Reliable, positive people are the heart of each company. The reputation and success of the company rides on their initiative, the willingness to adapt and daily activities. As a third-generation owner of the company, it does not matter if the administrator of the older factory used to give you back if he does not find ways to carry the table today. Be aware of "expert blinds:" when people decide that they know it all and stop learning something new. It's this attitude that led to this real quotation from 1920: "Wireless music box [radio] has no potential conversion value. Who would pay for messages sent to nobody specifically?" Who is that? As fun as this is in the backstroke, Blockbuster experts do not come on Netflix, either … so this is a very much current problem to be aware of.

Way 4: "I'm just going in my own way."
As the family becomes more diverse, its traditions and practices and attitudes towards work and play will be changed. Very often, the third generation family design failed to fully participate in its new role. They may not really want to receive the family, but do it out of obligation or family responsibilities. Perhaps they really wanted to do something else with their lives.

This is very tricky, because the new owner of the company may lack the passion and attention that makes the transition successful. Understanding the nature of their true, native driving ability can be a novelty part of "thinking". It is the ability to control your own mind and motivation, desire and need to "go to play" instead of applying the insufficient information to the family.

Without the interests of the third generation is not necessarily bad; sufficient, they can be diversified in the company's business philosophy. Successful integration of new business companies is like marrying new bloodlines in a family; Move strength through reverse if they are happy "match". There are cases where there is no common basis … and these contributions to a small percentage of successful third generation legacy business in operation.

If you think of a state as a family business, royal families constantly keep this challenge constant and manage it more or less than successfully from within – but they have royal training behind them. A heritage of the local plastic company does not have or does it usually have organizational changes that make generational transformations the likely and natural events.

Business success is never easy, but with little preparation and awareness of the nature of potential generations, you can only make it "the most effective way".


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