Nurturing generational success

As most of us know, finding common ground across generations can be… tricky. From varying tastes in music and fashion to perspectives on social issues, it can be rare when two different generations come to an agreement. Life experiences differ, communication styles evolve, and priorities change.

But when it comes to operating a multi-generational family business, the stakes tend to be much higher than whose musical taste reigns supreme. And speaking of family, personal feelings can complicate how business issues and opportunities are addressed. The combination of complicated family ties and generational differences may impact not only business success, but family harmony. In Deloitte Private’s 2024 Family Enterprise Survey, we polled current and next-generation family members to better understand perceptions, plans, and attitudes across multiple dimensions of the family business. From risk and technology opportunities to trust and the confidence to move forward, the results indicated divergence in many areas. Discover how companies and their leaders—from all generations—might reconcile conflicting views.

The legacy of the family, its impact on its respective communities, the hopes and aspirations of each generation, potential family disagreements, and the stewardship mentality can all reinforce the need to create strong alignment across generations. Will they agree on everything? Of course not. But there are opportunities to understand and to be understood, and practices to help strengthen the succession process.

Good communication is key to finding common ground. Being open to other perspectives, recognizing that organizations need to evolve, and having a level of emotional intelligence are also helpful in understanding each other’s views for the long-term success of the enterprise. There should also be a sense of urgency—especially when it comes to succession planning. By better understanding the risks and implications of not having a strong succession process in place, leaders may be willing to keep this as a priority agenda item, and with the help of their board of directors, ensure there’s a solid plan in place. And lastly, there’s no monopoly on good ideas and innovations—meaning that family businesses are often successful because they evolve and demonstrate agility to respond to changing market conditions. Embracing a culture of innovation, in which all ideas are welcome and properly vetted, may contribute to the goal of building an enduring enterprise.

As family businesses look to strengthen, grow, and evolve, consider these 2024 Family Enterprise Survey findings as a resource to help current and future generations prepare for what’s next.