Protecting, Respecting, Remembering and Building of a Legacy
Protecting, Respecting, Remembering and Building of a Legacy
Guest writer Ron Wilson returns this week with a blog post on family businesses and the honoring of legacies in “Protecting, Respecting, Remembering, and Building of a Legacy.”
How does a third/fourth generation family business protect and respect the legacy of previous leaders and apply the lessons learned toward the successes of the future?
While looking back over the history of a dealership there were critical high and low points that shaped the future of the organization. For the most part we can identify those critical points and understand the impact the events had on the organization.
Very seldom can we identify the specific individuals that were the critical influencers. Even more complicated is remembering what actions were taken that lead us in and out of specific events.
Recently I was visiting with a young director at a semiconductor company that was about to go through a layoff. As a leader this young director had not experienced laying people off, what was involved during the layoff, and the repercussions a layoff has on the employees showing up for work after the layoff.
I asked the young director what advise his Vice President (supervisor) had shared based on his previous experience. The response was the Vice President (supervisor) had not been through a layoff either.
Here is an example of one, maybe two, generations of leaders that have not been through some of the most difficult challenges of leadership. In your dealership what were one or two critical events that shaped the organization and who is still around to provide input and share the experiences?
Third and fourth-generation family businesses face unique challenges in preserving and respecting the legacy of their predecessors while adapting to the modern demands of the business.
Here are a few strategies to balance these priorities effectively:
- Codify Core Values and Vision
- Document the Family Legacy: Develop a written history or mission statement that highlights the founding principles, values, and milestones of the business. This serves as a touchstone for decision-making.
- Articulate a Shared Vision: Ensure all family members and stakeholders align on the future direction while honoring the past.
- Establish Governance Structures
- Family Councils: Create forums where family members can discuss business-related matters, ensuring continuity in decision-making and conflict resolution.
- Advisory Boards: Incorporate independent advisors who respect the family’s legacy, provide an external perspective and are aware of the specific challenges the dealership has worked through over time.
- Mentorship and Knowledge Transfer
- Intergenerational Mentoring: Facilitate mentorship programs where current leaders pass on their wisdom, values, and insights to the next generation.
- Storytelling: Encourage leaders to share stories of challenges, successes, and lessons learned to inspire and educate successors.
- Convert these stories to action steps taken: Share the critical steps taken in detail that allowed the organization to take on and work through a specific challenge.
- Blend Tradition with Innovation
- Honor Proven Practices: Retain processes or approaches that reflect the legacy, provided they still add value.
- Encourage Modernization: Position change as a continuation of the legacy, demonstrating how adaptation aligns with the founding vision.
- Visit the Past and Adapt to the Future: When going through a challenge refer to examples of past experiences to determine what worked/didn’t work and adapt when applicable to the future challenges.
- Historical Archives: Maintain archives of important documents, photos, and artifacts to preserve the family’s story.
- Education and Development
- Train Successors: Invest in the education and professional development of the next generation to prepare them for leadership roles.
- Encourage External Experience: Allow younger members to gain experience outside the family business before taking on leadership roles.
- Provide the opportunities to Learn from the Past: Before a new project is taken on have the team review the challenges of the past and identify the success and the weaknesses of previous projects. The old saying “don’t recreate the wheel” but learn from the experience and move ahead quicker by avoiding the pitfalls of the past.
By combining these strategies, family businesses can honor the achievements and values of past leaders while remaining dynamic and relevant in an ever-changing world.