Family Leadership Strategies

74 Families will set forth what is required of potential leaders with regard to education, work experience within or outside the family enterprise, personal conduct, characteristics and values, as well as key measures of success. Successful families shun nepotism and set high standards for family members or leaders brought in from outside. They never compromise when filling key leadership roles and avoid giving family members preferential treatment for promotions, compensation, or leadership opportunities. When necessary, they go outside the family to hire skilled leaders who are compatible with the values and culture of the family. They also take a multi-generational view on transition and embrace activities that continually groom potential new leaders with a range of backgrounds and experiences. Setting eligibility expectations and believing in a perpetual development process makes it clear to all what is expected of current and future family leaders, regardless of age or role. It serves to emphasize the importance of succession in the family and allows many forms of leadership to take shape. Needless to say, this process is not intended to ordain a specific future leader but rather to encourage any number of family members to strive for leadership roles in a number of areas. Over time, family needs, roles, and individual family member readiness will change, so flexibility is essential. Collaborative paradigms Mostfirst- or second-generation familymatriarchsorpatriarchsgrewupwithin a model of autocratic family leadership where the family leader was the sole arbiter of major life decisions, proper behavior, and reward and punishment systems. Contemporary successful family leaders shun autocratic behavior, and instead take a collaborative approach to communication, engagement of family members, and decision-making. They are comfortable reaching across generations to obtain input and promote dialogue and collaboration from a wide range of sources. They also put in place formal boards, legal entities, trustees, and informal advisors, governance structures, and practices that are appropriate for the size and complexity of the family entities, and engage non-family members in key governance roles.