Family Leadership Strategies

6 better permeates the values of many of the world’s wealthiest families. The extended family’s shared desire to remain united and perpetuate the family’s role, resources, and influence in business, culture, or philanthropy often leads them to ask “Who will lead the family and its various enterprises in the future?” In this book, we will: • Explore the crucial elements of successful family leadership transitions • Examine the most common behavioral and emotional responses by both those who hand over leadership, and those who take it on • Identify the numerous potential leadership roles that can be assigned to family members • Identify pitfalls and failure modes to be avoided in succession planning We will also present a process framework for the entire cycle of leadership development, transition, and post-transition. This will include strategies designed to promote communication, self-awareness, and comprehension of the family dynamics necessary to achieve a successful leadership transition. Central to our framework, are the following assumptions: • Effective leadership of the family enterprise — and the handover to well- prepared successors, be they family members or not — are key elements to sustaining family wealth over generations. • The process of leadership transition is perpetual. As new leaders undergo development, existing leaders mature, culminating in changes in role assignments. Soon after the handover, a new generation emerges who will undergo the process of leadership development. A family’s values and transition principles are the foundation of this cycle. • While we tend to think of chief executive officer (CEO) or chairperson roles when discussing leadership transitions, there are numerous formal and informal leadership roles within the family and family enterprise, and therefore many ways in which family members can exercise meaningful leadership.