NextGen Network Series: Why are next generation family members not “showing up”?
Date:
May 16, 2012
Many NextGen family members who are actively engaged in the business of their families, whether by participating in the foundation, working in the family office, or as an employee of the operating company, say they’re frustrated by peers who are not actively engaged. They’re especially frustrated when these peers complain about decisions but don’t provide input when asked or even respond to simple emails or phone calls.
So, what gives? What’s the reason for the lack of participation? From our work with the FOX NextGen community we have been able to gain some insights into what keeps some younger family members from becoming engaged in the business of the family. Here’s what we’ve heard:
Although they don’t mean to, older generations sometimes send mixed messages about participation. For example, if you’re a kid sitting around the dinner table hearing mom or dad talk about their dissatisfaction with other family members who work in the business, that experience might lead you to decide early on that you don’t want to be involved. Later, when you reach adulthood your parents and grandparents may be disappointed at your lack of interest, not realizing the unattractive picture of participation they unintentionally painted for you.
Another mixed message is given if you’re expected to get involved in the family business, but you’re also encouraged to follow your own path. If these two paths don’t intersect, there will be a personal conflict.
There are other pressures facing NextGens such as:
- Fear of not being able to live up to previous generations
- Pressure to perform and be excellent because of the impact to family legacy
- Ambiguity about how to be involved
- Family expectations to participate or assumptions that it’s not right
- Lack of motivation (What’s in it for me?)
What other pressures do you face when it comes to begin engaging in the business of the family? Was everything on your mind covered above?
Next time we’ll share some practical ideas and strategies to foster engagement with NextGen and other family members.
Some additional resources to consult on this topic are:
The NextGen Network Series discusses family and wealth management issues important to younger family members.