By: Priyanka Hindocha
If the next generation are
to play a leadership role in the future,
then they should understand even if they do not participate
in the election process.
In my opinion, it's important for the next generation
to understand the selection process
because one of the main risks to families
and the successful preservation of their wealth
is a family dispute.
So if families don't understand
why decision making processes are put in place,
that gives them a bigger chance of a dispute
or a an argument in the future.
Our most recent research asks families
how they believe leaders should be elected in the future.
The clearest preferences are a move away from self-selection
and towards selection by committee,
and a very, very clear trend is decline in preference
for primogenitor.
In my opinion, it's important
to think about which leadership roles a
family is looking to fill.
The selection of significant roles within a family business
may be less relevant to the next generation than deciding on
who should take on leadership role within the family itself.
As leadership is transferred from a founder
or wealth creator, that may be multiple leadership roles
to fill, and the next generation can absolutely play a role
in the election process in this instance,
or indeed could take on some
of those leadership roles themselves.