Family business expert discusses difficult and emotionally destructive problems confronted

In 30 years I have been working as a family business consultant, most difficult and emotionally destructive problems I confront in "business" element of a family business occur during transitional phase where client company is moving from a founder / owner- managed business environment to a professionally managed business environment. It should be noted that "professional" management does not equate to "better" management, but more to a change in management "style." It is mainly a contrast between "content" (professional matter expertise) and "process" (interpersonal relationships and interventions).

Evolutionary Process Professionalization is an evolutionary process that effects every family business. Successful family businesses actively and aggressively manage this transition process. When transition process is ignored or not carefully managed, it can result in chaos within business or severe conflict within family. Or both! The first step in gaining a better or fundamental understanding of professionalization process is to examine stereotypic perceptions between founder/ owner and professional manager. While these differences in individual characteristics are generally clear and predictable, they also translate into culture of organization and types of people hired and way things are done!

In other words, professionalization can not just be accomplished by hiring a high priced executive from outside organization. The basic philosophy, values, goals / objectives, basic work routines and expectations of customers, vendors and other business relationships need to be re-evaluated as well.

In fact, without addressing all of these relevant issues, hiring an experienced and successful executive from outside business, as a strategy to professionalize business, will almost always end as failed strategy, a very expensive failed strategy.

It is typical for a family business to have employees that span an age range from early twenties or even late 'teens into 60's and older. This happens not only because family often has members from three generations active as employees; but also because computer and software skills for today's information systems are often possessed by a younger work group.

At same time, until late 2001 labor market has generally been tight so that retaining and motivating your people is a real challenge. But what do your people really want? Do they all want same things?

Aside from younger workers thinking "...that old dinosaur might think he's T-Rex, but he just doesn't understand that world's changed..."

And "more senior" people occasionally lapsing into wistfulness and thinking "I wish I was young again and KNEW EVERYTHING!..."

Is world changing? Are there really differences between generations?

Let's look at some demographic information and see if there are insights that we can use to help... Generation Depression Era Baby Boomers X [for "unknown"] Y [follows X] Also known as Dinosaurs Boomers Gen Xers Gen D [for digital or debt] Born 1920 - 1945 1946 - 1964 1965 - 1976 1977 - 1995 Age in 2003 58 - 83 39 - 57 27 - 38 8 - 26 Job orientation married to job date job no job security unknown, yet

Depression era generation: Influenced by Great Depression in 1930's. Parents in this group lived through it, younger members heard much about it. Food on table and a roof for shelter dominated. Known for loyalty to employer, sense of duty, team orientation. Expect loyalty from employer.

Boomers question everything. They feel things will always get better; they will always be able to have more. They look for fulfillment, challenge and self-satisfaction in job.

Gen Xers [X stands for unknown since demographers couldn't identify any really defining characteristic of this group] need freedom to operate on their own terms. They feel life is about more than work; blame Boomers [their parents] for pollution, mass consumption. Will move if job doesn't fit. Transitory. They know they have no job security.

Gen Y [follows X] [sometimes referred as Gen D - for Digital or Debt!] are just entering full-time work force, although many have worked part-time throughout high school. High speed and instant orientation; more choices than any previous generation [they have grown up with computers and over 100 channels on TV]. They are used to a "virtual" world.

--------------------------------------------------------------------------------