Reflection question for the day: What are your wishes for your family enterprise as to who and how the next generation will lead the family’s enterprise?

In years past, primogeniture and ultimogeniture were the common means of ensuring lineage of families and kingdoms. They are better explained here: Premogeniture explained.

Simply put, primogeniture is the traditional practice of the ownership and leadership of the family enterprise to be passed to the oldest son. Do you have any biases, cultural or otherwise, on who will lead the next generation? Do you need to consider whether or not you have a pre-conceived idea of how the family enterprise will be passed, and have not considered the following generation’s capabilities and interest in the enteprise?

Does primogeniture work in today’s world? Tough question, right?

In my experience, families wrestle with this issue on how best to peacefully pass on the enterprise. Why? Many families have expectations that their children will:

1) all work in the enterprise
2) all become owners of the enterprise
3) all get along

Each of these three expectations has its challenges. For example, many families have hopes that all of their children will work in the business and get along. Is this realistic? Some children may not have the interest or may so wish to pursue their own path, outside of the family business. When I see this parental hope forced upon the children, they may get along for a time; but this often can break down when differences surface.

What are your hopes? How are you communicating these hopes with the following generation?

Learn, think, apply!