There’s a major problem family businesses want to avoid: Next Gen rivalry.
Infighting between siblings or cousins isn’t uncommon, but it can be disastrous. Lines are drawn. Family members back one over the other. Soon, the family business devolves into an internal version of Romeo and Juliet. (And we all know how that story ends.)
One common solution is to “silo” the Next Gen. But is that really the best step forward?
“Silo”-ing the Next Gen—separating them in the workplace—prevents competition between family members. Both family members can work in their chosen field without fearing comparison. While this solution seems the most reasonable, it can have adverse effects. Namely, when an individual is expected to excel in one area of the business, their exposure to other areas of the business remains limited. This hinders them from developing a comprehensive understanding of the company.
A recommended approach to avoiding Next Gen rivalry and preventing competition is implementing Rotational Systems. Read about the pros and cons of Rotational Systems in “Preparation vs. Separation for the Next Generation.” Come away with a better understanding of how to prepare the Next Gen with Rotational Systems.
Read about how to prepare the Next Gen with rotational systems 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.