1. Chapter 4 Third Leadership Imperative The Next Generation
Family Business, First Edition, by Ernesto J. Poza
Copyright © 2004 South-Western/Thomson Learning

2. Leadership Vision
The next-generation leader provides a vision that rejuvenates the business and makes it competitively fit in the succeeding generation.

3. Successful Successors . . .
Love the business and know it well
Know their strengths and weaknesses
Want to lead and serve
Are guided by earlier generation, advisors, and board of directors with outsiders
Have good relationships with other members of successor team

4. Successful Successors . . . continued
Can count on nonfamily managers to complement their skills
Have controlling ownership or can lead through allies
Have earned respect of nonfamily employees, suppliers, customers, and other family members
Have personal skills and abilities that fit strategic needs of business
Respect the past and focus energies on future of business and family

5. Training the Next Generation
Heirs should learn early that family business means stewardship and responsibility
Training suggestions
Allow young family members to work for a salary
Provide youngsters with expense account to teach financial responsibility
Compensate young family employees at market rate and provide performance reviews

6. Successful Sibling Teams . . .
Understand interdependence and willingly subordinate as necessary
Understand that their skill at collaboration results in win-win or lose-lose
Appreciate how their abilities and skills complement others’

7. Sibling Teams . . . continued
Have a decision-making process in place
Manage interdependence by making goals, roles, relationships, ground rules, and feelings explicit
Feel as if they would choose their siblings as partners, even if they weren’t family

8. Cousins Consortium Members . . .
Depend on a strong legacy because of greater distance between family branches
Maintain a balance of power among family branches
Do family business through forums, retreats, assemblies, councils, etc.
Have many opportunities for family participation

9. Leadership Responsibility
“Each generation has the responsibility of bringing to the business their own vision for the future of the business.”
—Samuel Curtis Johnson III, Retired Chairman, S. C. Johnson, a Family Company, Inc.