Susan St. Amand (top left), Roberto Vallamar (top center), Karen Lapade (top right), Emma O'Dwyer (bottom left), Deena Chochinov (bottom right)
Boomers
Susan St. Amand
Founder and President of Sirius Financial Services
When generations aren't speaking the same language or don't have similar exposure to key influences, it is difficult to share the same perspective and agree on common values. Boomers may feel that family values, memories and the historical context of challenges and success don't receive the deserved attention, but it's important to stay focused on shared values. The biggest challenge is often to encourage different generations to openly share their views and respect each other's perspectives.
At a time when there are more integrated families from multiple marriages as well as changes within sexual orientations and multijurisdictional residences, families may need to revisit and confirm their values against a changing general social fabric. Boomers can find it difficult to transition from the role of a parent to that of a mentor, but they need to allow the next generation to challenge the conventional and be prepared to accept the consequences.
The accelerated pace in business can impact a family's ability to formulate long-term goals and communicate them to the next generation.
For boomers, it's important to be open to evolution, accept differences and nourish a vision of the future. Diversity of voice and opinion is often a key element to tackling today's challenges, and leading by example will gain the respect of all younger generations.
Generation X
Roberto Villamar
Chief Strategy Officer and Business Development Manager Canada, COHECO
When I reflect on my career, a few elements stand out as crucial: first, I didn't start working with the family enterprise right away and only joined after gaining outside experience. And I am the type of person who will look for a positive perspective of every person, situation or challenge. I always try to identify the root of an issue first, leaving emotions aside as much as possible. Finally, I love learning, planning and working with people.
When dealing with business and non-business issues during my 18 years at the family business, there have been many times, even now, when I feel my voice is not fully heard. While I've gained strong leadership capabilities, with daily examples and results, I still face challenges when I promote a new change: it feels like starting all over again. Perseverance is key.
A big challenge that Gen-Xers face is being in the middle of two strong generations calling for attention: baby boomers and millennials. When it comes to our view of work and long-term objectives, I personally believe we have a lot in common with older generations, which generates a perception from younger people that we are more aligned with boomers. But the older generations might identify us closer to millennials, leading to a risk of inadvertence.
I'm currently studying to become an adviser for family enterprises and believe that "family-ness" is a key strategic component for business success, but new structures and open conversations across generations can make a big difference.
Generation X
Karen Laprade
Founder and CEO at LEAD
Often, the founding generation resists new ideas with the question: "Why would we change something that we have always done this way?" Instead of calling for rapid change, a less threatening approach with a long-term view would be for the rising generation to propose investment in the future by uncovering values. Tremendous opportunity comes from an assessment of values getting to the heart of what motivates each individual. When the different generations do this work, they can see where their values conflict and converge, allowing them to move forward with new insight. They might uncover areas where they require support or need to develop new skills or bring in someone external. Starting from a foundation of values is a strategic move, ensuring a better cultural fit and positioning the enterprise for sustainable growth.
On the other hand, the interplay between the possibility of choice and the reality of failure makes living within a family enterprise difficult, which weighs heavily on the rising generation. Here again, values-based conversations about what being an enterprising family means will help create a compass for shared decision-making. It's critical to remember that a family enterprise is a community of people – a place where all feel nourished and heard.
Millennials
Emma O'Dwyer
VP Market Development, The Matcom Group
The main challenge to family businesses in today's world is how to financially manage the transition of the business in order that the current generation can retire comfortably and the next can continue to grow it and maintain the family's investment.
The cost of living today is high (and still rising), so the older generation often does not want to leave the business or take more financial risks, thus delaying the transition process. As well, financial institutions have become increasingly risk averse and are reluctant to partner in the family business transition process. Government regulations and taxation changes have also made passing a company to the next generation more difficult than in the past. In most cases, a better "wealth" decision would be to sell instead of keeping the business in the family, but this is rarely the final objective when starting a family business.
Without a financial partner to help bridge the transition, the old guard tends to stay in control longer than would previously have been the case. Members of the next generation find themselves with the stress of managing the business but none of the strategic power to run it how they envision or plan for continued growth.
It is crucial to plan ahead for the generational transition. The time to begin planning is when the business is first started and to keep tweaking it as time goes on. Most importantly, change the plan or cash strategies to ensure they fit with current regulations and realities.
Millennials
Deena Chochinov
Family Enterprise Adviser
Because of their high energy, enthusiasm and zeal for making – and seeing – a difference, millennials can sometimes be impatient. They can become easily frustrated with what they see as a "turtle-like speed of bureaucracy," outdated business practices and resistance to technology. They are a generation that wants to be included in, collaborated with and participating – they typically want to jump into the business with both feet.
How can these attributes best be harnessed for strengthening family businesses? By involving millennials in foundational discussions about shared visions, goals and values.
Millennials can also grow their financial literacy and competency and build their "business capacity" by asking for challenging and interesting assignments, such as short- or medium-term special projects that expand their knowledge of the business and increase their depth of experience. They tend to do well when they consider their parents and grandparents as "wisdom keepers" of the family enterprise, and rely on them as respected coaches, mentors and guides.
Increased engagement and transparency can shape the rising generation's positive views of the family business and increase their commitment to actively participate. Open communication about continuity and succession planning is a must between the generations, and leaders need to understand that they should pass the baton not when they are ready to leave but when their successors are ready to lead.
This content was produced by Randall Anthony Communications, in partnership with The Globe and Mail's advertising department. The Globe's editorial department was not involved in its creation.