Padre noble, hijo rico, nieto pobre
Meaning: Father, founder of the company, son rich, and grandson poor
This famous saying in Mexico about family-owned businesses beautifully describes the current state of second and third generations of these businesses. The grandsons and the great-grandsons are trying hard to thrive in the current VUCAD world. They are pushing all limits to adapt to the new ways of working and innovating. Some are succeeding but most are not. Challenges are many and they range from ever-changing economy to clients who want more from less to finding and hiring the right employees with a healthy mix of millennials, Gen X & Y or just plain old increased competition in the market.
In a recent conversation with the Head of HR of a family owned conglomerate revealed the challenges faced by the current Managing Director (4th generation). These challenges exist in the corporate world as well but they get exaggerated in a family business and limit the growth of the conglomerate. These are the challenges which stood out in the conversation of the great-grandson:
- Leader missing his North – Lack of written vision and strategy. Decisions are made day-to-day in response to problems vs. having a clear line of sight.
- Where is the leader – Multiple businesses, Multiple CEO’s but lack of clear leader who will collaborate across and bring in efficiencies of scale.
- Just follow the tradition– Authority driven decision making with centralized control. Decisions are influenced by tradition instead of solid business management practices.
- Informality is the norm- Absence of clear formal structures and policies inhibits the conglomerate to be listed against competition in global playfield.
- Succession is a Joke- Locus of control shifting from one generation to another and no real succession plans.
- Tunnel Vision – Senior mentors continue to give directions. Lack of outside perspectives and diversity.
Our take is “It starts from the TOP”
The CEO himself has to take responsibility towards building a progressive future in tune with the current environment rather than stuck in the shackles of past. He has to move focus inward and towards self-mastery which will create an external impact on clients, investors and teams.
We at Recalibrate, have a vast experience of working with such CEOs and executives.
A CEO /Executive coaching journey of 6-8 months helps the 3rd/4th generation leaders to:
- Define who they are and expand their identity to better serve them and their organization.
- Identify their true values and beliefs and find their true north.
- Find their own resilience benchmarks and respond to adversity positively
- Land with impact with stakeholders of all generations because of a heightened presence
- Hone the art of leading with no authority and more as the Sculptor
CONTACT US to crank up your Business & Personal Growth Trajectory with Recalibrate!!
Partner, Head of Coaching & Leadership Practice at Recalibrate Pvt. Ltd.