Educating the next generation on family business matters is complex for both senior and next-generation family members. The list of activities that help shape and prepare the next generation can be very long. Education can be a mix of mandatory, self-imposed or discretionary activities. To ensure a successful journey, families should keep the next generation involved and learn about their needs before designing educational programs and activities.

Research has shown, that when next-generation family members where asked what topics they personally considered essential to learn about, the consistent feedback was that they considered family and board governance to be the most important topic of all. Entrepreneurship, leadership and succession followed closely.

While establishing a family culture that nurtures exchange between generations is a step in the right direction, it is certainly not enough. Families also need to find ways to pass on their rich knowledge and heritage to the next generation while motivating them to learn about business matters. This is not a one-way-exercise. It requires commitment from both the older and younger generations.

There is a tonne of research out there that indicates that educating the next generation about family business matters can be one of the key ingredients to strengthen the bonds between the family and the business. This helps build a sustainable long-term vision for future generations and creates a platform for sharing experiences within the family. Having a strong education in family business matters helps the individual shape and develop a personal vision and identity as a future family business owner.

Three equally important dimensions need to be taken into consideration:

THE FAMILY’S BUSINESS ACTIVITIES – connecting with what the family business is about
While the members of every generation deserve to be introduced to the family business’s history as well as its heritage and values, not all will naturally be inclined to study business matters. Nonetheless, a general understanding about what a family’s business activities are, together with an overview of performance, innovation, marketing, finance and social responsibility, is important for all family members in order to grasp the environment the family business is operating in.

GENERAL FAMILY BUSINESS MATTERS – A deeper understanding of business issues will provide the younger generation with awareness of the family business dynamics and the pressures the owning family is exposed to over time. Becoming aware of potential pitfalls and the many diverse ways to approach succession, governance and communication is a way to establish an educated discussion within the family and to make the right choices. There are many different options for planting the seeds to grow a meaningful understanding of family business. It takes constant, yet well dosed watering to grow the seeds. Most families use a mix of them: learning from other families, enrolling in proper training courses, hiring consultants and experts.

PERSONAL DEVELOPMENT – Lastly, just as any executive would benefit from personal development and education, future family business leaders do too. The families can provide them with tools and experiences that help shape their talents and develop their skills while facilitating employability within and outside the family business. It is important to motivate the next generation to have the desire to contribute, to add value and to see the multiple options they have to make their dreams and aspirations become true. These activities can be formal or informal, individual or group exercises and help the next generation develop a secure base to assess the value they add to the family business. External advisors and business schools can help provide real world learning experience through proper training on family business leadership training.

There certainly is no cookie cutter approach to instilling a strong sense of business into family members. Each family has to define and shape its own educational profile. Timing and location are also very important. Above all, it is the quality of the education that will make all the difference. In my experience, taking next generation members out of their comfort zone, offering them hands-on experience and providing short and efficient learning programs is a good way to get them involved.

As Oscar Wilde once said “You can never be overdressed or overeducated” and I strongly believe that a large part of the long-term success of family businesses depends on the level of education the next generation receives and their eagerness to apply that knowledge.

It is for this reason that at EMCS Academy we have developed the uniquely accredited (at MQF Level 5) course “Award in Leading a Family Business”. The 2nd cohort of this course will now start as from 1st October. Click HERE to review the details of this course and to REGISTER.

Click HERE to view a short video of testimonials from C.Cini Group, Lewis Press, Oxford House and Neriku that attended the 1st cohort of this course.