The next generation in family businesses often feels frustrated because the big ideas they propose are frequently rejected outright by the founder. Yet this failure is usually not due to the poor quality of the ideas themselves, but rather to a lack of strategic approach in presenting them. This article discusses the importance of employing tactical maneuvers by involving senior executives to ensure that business ideas are fully developed at lower levels before reaching the highest decision-makers.
The Art of Refining Ideas at the Operational Level
Often, a successor immediately proposes a major investment idea without thorough preparation at the lower levels. This is very risky because if an idea is rejected by the owner at the top level, that decision is usually final and difficult to reverse. Therefore, it is highly recommended to conduct a preliminary feasibility study (Pre-FS) first by involving professionals already within the company.
It is better for an idea to be refined or even rejected at the lower levels by colleagues or senior directors than to be rejected outright by the founder. The discussion process at the lower levels allows an idea to be tested and further developed. By asking questions and discussing what needs to be improved, the successor is actually building internal support so that the idea has a stronger foundation when it is formally presented.
Understanding the Strategic Role of Senior Directors
In many family businesses, a founder typically places a great deal of trust in the senior directors who have been with him or her from the very beginning. Their relationship is often like that of siblings, so the next generation cannot simply bypass or overlook their roles. Involving senior directors is not just a matter of technical work but also a matter of respecting the structure of trust that has been built over decades.
A founder usually has many eyes and ears within their own company. If the successor makes a tactical move by presenting an idea to the team and fostering a healthy discussion, that positive news will naturally reach the founder’s ears. When the founder sees that the idea has been discussed with their trusted advisors, they will feel much more at ease and open to supporting the project.
Avoiding the Traps of Ego and Hurt Feelings
One common mistake among the younger generation is the desire to unilaterally claim an idea just to gain recognition. When that idea is rejected, they tend to feel hurt and lose their motivation to work. In reality, in the professional business world, ego must be set aside for the sake of successfully executing the idea itself. Taking a tactical approach by allowing the idea to be “developed” alongside the senior team is a far more mature move.
By allowing senior executives to help refine the acquisition or investment plan, the idea ceases to be an individual’s idea and becomes the organization’s idea. This creates a safety net for the successor, as they are not standing alone when facing their father or the founder. Corporate diplomacy strategies like this are crucial for maintaining family harmony while ensuring that innovation can continue to thrive within a conservative system.
Conclusion
Navigating ideas within a family business requires patience and well-thought-out tactics. The next generation must recognize that Senior Directors serve as a golden bridge to the founder’s trust. By involving them from the early stages and refining concepts at the operational level, the likelihood of an idea being accepted becomes significantly greater. Setting aside personal egos for the sake of shared success is the key to ensuring business sustainability and intergenerational harmony.
