Family and legacy go hand in hand and most families in business have a desire to
connect and contribute to sustaining their legacy across the generations. One way we
do this is by sharing and maintaining the things we value, such as important
traditions, milestones, personal histories and the family’s beliefs and principles. In
family business, legacy is the connective tissue that binds the core purpose of the
business, the family’s values and meaningful achievements across multiple
generations. It represents both tangible and intangible assets: the financial worth and
the social and emotional value that the family has accumulated.
Helping the next generation achieve their vision for tomorrow by building on
the foundation of today is the need of the hour.
It has been observed closely that change is often ushered into family owned
business when the next generation comes on board.
These scions have a vision for a different future, often planning on new product
lines or geographic expansion.
Family businesses promote entrepreneurship, and generate wealth and
security for the next generation (next gen) of owners. The very things that make
family firms so wonderful such as the highly personal relationships, the
inherent loyalty and commitment, the flexible structure, are those that pose
challenges in the long term.
Coaching also helps them to align themselves with the existing values and
fabric of the company. Well managed integration at this time goes a long way in
the future success of the business. Coaching is one of the most valuable
methods to ensure successful handling of inter-generational transition.
To ensure organizational effectiveness and growth in the long term, the next
gen needs to recognize and understand both the strengths and the weaknesses
of family businesses. Finding a balance between respecting the processes of the
past, and seizing the opportunities that the next gen sees for the future, has
always been a challenge in family firms.
Business Families are the backbone of the nation’s economy and contribute to
upward of 60% of any country’s GDP; 80% plus of Industrial output, and
employ almost 70% of the working population. It is also a fact most of the
family businesses shut down before they reach the 3rd generation. The study
shows that only 13% of the family business makes it past the 2nd generation
and only 4% beyond the 4th generation.
The single biggest reason for their demise is the unstructured or informal way
of preserving their Legacy through the different generations.
Krescon Coaches offer a structured methodology to plan the Legacy which is
based on tried and tested Global best practices
A transformative framework for sustaining and growing the family business
legacy and ensuring the business’s actual values, culture, and identity do not
get diluted in today’s fast-changing business world.
