You can’t “wish” competent owners into existence in your family business. Family shareholders need specific skills and experiences in order to effectively fulfill their ownership roles. Too often family businesses fail to provide the Next Gen with the necessary education to develop competence.
Entrepreneurial competence is the ability to support the business’s long-term success. This includes a deeper understanding of business management: finance, strategy, and leadership. Shareholder competence, on the other hand, focuses on the capacity to manage ownership duties and right. A competent owner should understand tax implications, inheritance law, and the management of family assets.
Beyond these skills, owners must also demonstrate individual competence, primarily through personal growth. This includes self-awareness and self-regulation, as well as the ability to respond constructively to feedback. The final competence owners must develop is family competence. Owners should contribute positively to family dynamics, manage conflict, and understand the emotional and behavioral influences at play within the family system.
Once you understand these competencies, then you must develop competent owners. For strategies to accomplish this, read “Why Don’t You Educate Your Owners?”
Read about how to develop competent owners here.
Become a Member for Your Expertly Curated Advice
Joining the Family Wealth Library means access to the information the legacy builders need to navigate family dynamics and protect our wealth. We can keep what is ours by managing familial challenges and building trust and transparency.