At the December Monthly Educational Program: What I Wish I Had Known: Lesson Learned That Should've Been Taught, Chris Ahlum, President of Ahlum & Arbor, Nick Trifelos, National Sales Manager for Anthony-Thomas Candy Company, and Patrick Wathen, President of Equity spoke with Michelle Roseberry with HBK CPAs & Consultants. Their conversation traveled through the experiences and challenges the three next-gens have had since entering their respective family business. Breaking down what they wish they had known before going into - and ultimately leading - their family business. Here is an overview of three lessons learned that our panelists discussed.
Lesson 1: Balancing Family and Business Dynamics
As a next-generation leader entering the family business, there is a complete shift in dynamic. Family members must work together to reshift and balance their relationships outside of the business into what goes on within. From needing to be taken seriously to struggling with past-held ideas family members have of incoming next-gen, there are many complications. Personal relationships can take on new shapes, but it is important to remember that a family and business relationship are two separate things. Family gatherings and discussions help shape business decisions, so maintaining business composure, regardless of familial relationships, is vital. However, as an up-and-coming next-gen leader, the panelists emphasized the opportunity to learn from older generations that comes with entering the family business. The lesson is to take time to listen and appreciate the knowledge being handed to you.
Lesson 2: Building Trust and Open Communication
When entering the family business, one thing that will occur is seeing your family members in a new and different light when switching to working together. Building a strong foundation of trust and open communication across the generations will help you pass through this change. One recommendation to maintain this was consistent weekly family meetings as a forum for open communication, context setting, and addressing challenges and disagreements. This also maintains the alignment of goals and the understanding that disagreements come from a place of caring. Being direct and intentional may not always seem like the answer, but the panelists agreed that broken trust is far more of an issue than any level of directness. So be sure to be honest and trust that your relationships are strong enough to combat any disagreements that can arise. Every family member has strong and varied opinions, so it's vital to understand each other's perspectives. Each family member has different strengths, so learning to take advantage of then will build and foster strategic leadership.
Lesson 3: Balancing Tradition and Innovation
As a younger addition to the family business, the next-gen leader will be aware of social and cultural trends that can boost the family business. Many family members can be resistant to change, especially when it can affect years of business tradition. The overall rule is that adapting to changes in the market can be incredibly beneficial to a business, but maintaining core values and traditions can be even more valuable. Traditions create a nostalgic feel for customers, which is essential for maintaining consistent engagement. Incorporating modern trends can be great when space is still maintained for these company traditions. The panelists dove specifically into the value of annual events that foster employee engagement and a sense of community. Staying current can be a challenge to maintaining traditional elements, but acknowledging the need for change and balancing it with the company's traditions is the best way to promote innovation.
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