By Rob Williams, Partner at AO People Partners
Family businesses face a stark reality. Despite representing 70-90% of global GDP and creating 50-80% of jobs worldwide, nearly 70% fail to successfully transition to the second generation, with a mere 12% surviving to the third.
At AO People Partners, we embrace this challenge. The complex intersection of family dynamics and business operations demands more than standard leadership approaches. It requires a nuanced understanding that balances legacy with innovation, family values with business imperatives.
OWN + MODEL + DRIVE: The Leadership Framework
Leadership development done right delivers a proven $7 ROI for every $1 invested in multi-year programs. This isn't accidental. We've discovered that successful family business transitions occur when leaders OWN + MODEL + DRIVE the development agenda:
- Own your role to drive purpose-driven leadership and create a growth mindset
- Walk the talk by sharing your own development journey
- Align business strategy with talent strategy
- Define core values and principles to shape organizational culture
- Embed leadership development as a way of being, not an occasional event
According to research from McKinsey, 72% of a company's success is tied to the "soft stuff" – issues related to people and culture. This mindset, elevating focus on leadership mastery and alignment, increases the odds of strategy success from 30% to 79%.
Serving Every Generation in the Family Enterprise
LEADING GENERATION (CURRENT OWNERS & EXECUTIVES):
The end is not guaranteed. What if you're wrong? Or right, but fail to execute well? Great leaders understand they will never have "all of the answers." Family governance structures provide the framework for business continuity while honoring legacy.
Executive coaching helps you:
- Plan and execute successful leadership transitions
- Develop strategies for your next chapter
- Create sustainable succession frameworks
- Establish leadership alignment for executive team growth
RISING GENERATION (FUTURE LEADERS & SUCCESSORS):
There comes a point when the next generation leader must take that uncomfortable first step toward a desired outcome. It can be scary.
Emerging leaders must:
- Prepare for expanded leadership responsibilities
- Develop executive presence and communication skills
- Navigate complex family dynamics while building credibility
- Embrace talent strategy for organizational growth
NON-FAMILY EXECUTIVES (TRUSTED BUSINESS STEWARDS):
The most forward-thinking family enterprises recognize that leadership transformation sometimes requires looking beyond family members.
We help successful family leaders:
- Build influence and drive change within family dynamics
- Provide feedback effectively in family business contexts
- Manage relationships with family member reports
- Support leadership transformation and purpose-driven leadership
Big Things Are Won by Big Dangers
If we are not finding the edge of our comfort zone, we are shortchanging what we might become, what we might create, potentially foregoing the extraordinary moment that's only possible when we go where we once feared to go.
The family consulting journey demands courage. It is a human journey after all... but, like any worthy pursuit, it only requires a first step to get going. Through multi-generational leadership development, we create sustained organizational growth that honors legacy while embracing innovation.
My partners and I have learned that developing people capabilities, equipping them with what they need to flourish, is not only key to business success; it is what will make the most positive difference in our world – it is the ultimate contribution a family business can make to society.