Digitization aggravates the struggle between generations: Next Generation has ambitious aims and a clear vision – Lots of followers are frustrated since the old generation doesn’t exploit the potential of digitization – Only seven percent think that their company already has a promising digital approach – Five variables determine the continuing presence of a family-owned firm
Dusseldorf, Germany – 18 October 2017 –
A successful business needs a thorough digital approach – 75 percent of successors in family-owned businesses are convinced of them. However, another generation, or adjacent gen for short, hasn’t yet succeeded in convincing the old generation: just seven percent think that their family-owned organization is already well placed concerning digitization. Over a third party is frustrated since the parents’ production pays too little focus on digital shift. This is revealed in the analysis “Same enthusiasm, distinct avenues” from PwC, where 137 youthful successors from 21 nations give an insight into their work. The outcomes of the study also have an effect on guest companies: In many resorts and restaurants, generational battles are a daily occurrence, particularly concerning the projected use of electronic tools as well as the reorganization of work procedures as a consequence of automation.
“While the younger generation is excited to execute their thoughts fast, the old generation is reluctant. However, both characteristics – openness to change and hazard awareness – match each other perfectly.” After all, NextGen, that will be beginning its own career in the household in a high academic level, with a great deal of work experience and a global network, is self-explanatory and wishes to leave its mark: 75 percentage of tomorrow’s decision-makers have large plans with which they would like to improve the family enterprise.
Innovation is the Secret to success
While 82 percent of NextGen think that innovation is the trick to success, just 15 percent believe that their family-owned organization is very strong in this regard. Slightly over half (56 percent) of youthful entrepreneurs currently play a central part in their own business; 29 percent believe that they could contribute more and 15 percent are pleased to have the ability to keep out of the field. “Family companies should exploit the capacity of this younger generation and also demand them more carefully.
NextGen needs a more powerful strategic direction
NextGen is about to come up with new business models and also to place itself widely – diversification in addition to innovation is thought to be a success element. Additionally, it has a very clear vision of their future and plans to make use of a more powerful strategic orientation during the following five to ten decades.
But even if the desire to get a tactical leadership combines NextGen, the paths it requires are so distinct.
- Preserver – 20 percent of those retainers pursue the standard career path from the family enterprise. They research, develop experience and prepare themselves to keep the life’s work of the parents and grandparents professionally and professionally.
- Creators – 35 percent of designers wish to alter the family business in accordance with their own thoughts. In doing this, they’re focusing mostly on inventions as well as the electronic transformation of this family-owned firm.
- Intrapreneurs (20 percent) also wish to change the family enterprise. For the end, an area of the family-owned business is spun off, at which Next Gen will pursue its own ideas. Just like a startup, this branch has its own method of functioning and corporate culture.
- Entrepreneurs (25 percent) intentionally cut themselves off from their own family business and discovered their own firm.
The analysis also examined which factors contribute to great collaboration between the generations and so ultimately guarantee the continuing presence of the business. Five variables were repeatedly mentioned:
- Culture (What’s the following gene’s chance to attempt to grow?),
- Communication (How can the generations layout that the dialogue?),
- Credibility (How can the Following Gen succeed in demonstrating that it’s more than the boss’s kid?),
- Commitment (responsibility of either side to put money into a long-term alliance?).
Peter Bartels adds yet another success factor: the openness to alter:”Succession can only achieve success if the two generations are ready to continuously adapt their businesses,” states the professional for family-owned businesses.