Communication Leadership Working in the business Coping with stress

2. Communication Leadership Working in the business Coping with stress

3. The objective of this session Identify ideas & initiatives that Next Generation family business members might implement in their own family business. “Making succession a success is the objective of NG”

4. Ideas and Initiatives The following ideas/initiatives were summarised at the end of the Next Generation Workshop at the 2005 Family Business Australia Conference.

5. Communication Ideas and Initiatives: • Form a family council to create or support a clear vision or mission for family & business • Incorporate clear procedures to make this happen • Use outside support to implement improved communication protocols– eg facilitators • Insist on regular communication via meetings (formal/informal) important to ensure whole family clear on intent. • Take a leadership position with regard to the need for improved communication. • Rules for communication – eg your family might decide yes or no to business talk on Sundays • Allow mistakes by other Next Genner’s and the incumbent generation • Ok to agree to disagree • Try new channels of communication - think creatively about the communication challenge. • Ensure good communication with other NG members and the incumbent • Learn to document and distribute minutes of resolution.

6. Communication Ideas and Initiatives (Cont): • Weekly/fortnightly phone calls/conferences between 1/4ly executive meetings to keep info flowing. • Keep emotions out of discussions – try to remain clear headed • Restructure decision making methods that inhibit communication (also ensure roles enable this to occur – who fits best?) • Understand all types of communication within family & staff • Have off-site meetings/external reviews to “keep the business honest” and allow to tackle sensitivity • Daily lunches as a family • Understand what each generation wants and needs (don’t leave it unsaid)

7. Download Ideas/Initiatives Leadership: • Earn respect and credibility from the employees first • Change from a working role to a management role • Ensure leadership style in the business suits the business phase • 360 degree review to ensure leadership style appropriate • Seek feedback • Leader needs PASSION • Incumbent needs to clearly set out expectations for next gens leadership style • Next gen needs to be clear on what they think they can achieve • Assess whether or not you think you are a leader – is the job for you after all? • Outside support to assess the prospective leaders in the business – are they right for the job? • Communication – set up family forums (in laws included) to ensure everyone knows what’s going on

8. Download Ideas/Initiatives Leadership: • Governance plan, constitution, independent board members, junior board member program to give ownership/responsibility • Process of finding leader needs to be honest – is it actually someone in the family or external? Utilise outside support to determine. • Determine if obligation is driving decision – not true desire/ability • Incumbent Gen needs to have a forum to retain some involvement in the bus after leaving – mentoring? • Established criteria for leadership – to be documented and communicated widely (eg outside experience) • Implement criteria objectively via review/board of directors when seeking leader for business

9. Download Ideas/Initiatives Leadership: • Leadership skills need to be continually developed – outside training and mentoring • Passion & motivation critical • Instill passion and ideas into kids at early age – cultivate early and give freedom to explore • Equip leader for role effectively • Communicate clearly to all (suppliers/staff/family) to ensure new leaders role supported & accepted • Work/Life balance issue needs to be acknowledged/supported and formally agreed upon

10. Download Ideas/Initiatives Leadership: • Identify a plan for future leadership • Individual needs • Determine leadership issues • Develop action plan – eg external coaching • Communicate in advance – be transparent (no hidden agendas) • Timeframes/milestones • Seek constant feedback • Start now – it’s an ongoing and integral part of the business • Identify which skills are lacking in potential leaders • Create environment & structure business to enable development of family constitution • Open communication between all parties • Find a way for younger gen to develop skills whilst respecting older gens needs/styles

11. Download Ideas/Initiatives Working in the business: • Identify forum for next gen to express views and ideas • Traineeships, or shadowing of older gen, for new gens to understand the roles better • Imaginary “sacking” of family members – have them re-apply for the roles based on skills and correct fit for the role itself • Ensure scheduled family meetings to discuss bus and family issues • Balance family structure & hierarchy with bus structure to ensure correct fit

12. Download Ideas/Initiatives Working in the business: • Open communication – meetings/forums • Mentoring process for new family joining bus • Case studies valuable learning tool • External experience “out in the real world” for next gen very important • Encumbent to be clear on their role as decision maker • Allow family members to join bus on own terms but also understanding the bus needs • Next Gen important to join a Forum Group to provide support/advice & help in their journey to join the family business.

13. Download Ideas/Initiatives Coping with Stress: • Proactive with stress – don’t let it take over • Compartmentalise stress – deal with it actively to ensure it is kept under control • Process to discuss issues – find a respected “outsider” to help • Retiring leader should be involved to support new gens through the process of personal growth in bus. • Ask questions of your role and seek clarification to understand intent • Find ways to handle relationships within and around you better

14. Download Ideas/Initiatives Coping with Stress: • Confirm and understand agendas, abilities, and roles of all around to be more clear • Seek professional support to work better/ cope better • KPIs, staff performance measures on all around but esp. yourself so as to be clear on your objectives. • Clearly understand the business first. • Respect the need for time away from the business to clear the mind/soul • Make everyone accountable • Provide support and encouragement to both staff and family to ensure they feel needed and appreciated

15. NG LOGO