Andries Brink | Services Leader | PwC | andries.brink@pwc.com | www.pwc.com |
Different visions of the future and concerns about business issues persist between the current and next generation of business leaders.
In businesses around the world, a savvy ambitious generation is coming of age and preparing to take ownership.
The next generation of business leaders is more ambitious and determined than ever, but some old challenges remain and new ones have come to the fore.
Diverse views
Differing visions of the future and concerns about business issues persist between the current and next generation of business leaders.
Digital and innovation is one area where the generation gap lingers. Research shows that while next gens are excited about tackling digital, but often at a pace that can be uncomfortable for the current generation. As ‘digital natives’ they feel much more comfortable with digital and innovation and see its potential for change.
Despite their positive outlook, the next gen still struggle with convincing their parents, the current generation, of the importance of innovation, particularly the role digital technology plays in the business. What may seem as the next logical step to take in a business by the younger generation, may not necessarily be as intuitive to the current generation of leaders.
In this context it’s significant that 75% of the next gens think it’s very important or essential to have a strategy fit for digital age, but only 7% believe their own firm is currently doing this really well.
Judging by our own conversations with the next generation, if they are going to make significant headway in this area they need to do thorough research and make a compelling business case to those currently in charge.
Leadership types
There are four main approaches that the next gen are taking to build their own paths to success: stewards, intrapreneurs, transformers, and entrepreneurs.
Stewards focus on protecting the profitability of the family firm, and ensuring its long-term sustainability.
Intrapreneurs set up their own venture within the family business, often with financial backing.
Transformers take on the task of driving significant change in the family firm, with the scope and support to do so.
Entrepreneurs set up their own separate venture outside the family firm, with no profits going back to the family business.
Given that the next generation may follow different ‘paths’ in the future, the challenges for the current generation is to prepare, equip and support the next gen to be successful whichever path they choose in the future.
The development of the next generation must be development with a purpose to create the options that will allow the next generation to pursue their passion in the future.
