engaging the next generation of intrapreneurs in the family business - bff family business think...
TRANSCRIPT
Prof. Dr. Peter Vogel / www.petervogel.org / [email protected] / @pevogel
Engaging the Next Generation of Intrapreneurs
GLOBAL IMPACT OF FAMILY BUSINESSES
Global Impact of Family Businesses
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Image: BFF InfographicsData sources: FFI & European Family Businesses, 2012
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Global Impact of Family Businesses
Data source: European Family Businesses, 2012Family Firm Institute
PWC, 2012
Contribution to Global GDP
Contribution to Global Job Creation
Family businesses (FB)Non-FB
70 – 90% 50 – 80%
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Global Impact of Family Businesses
Family businesses are…
… more profitable in the long run & outperform non-family businesses
… less likely to lay people off despite a potential economic downturn
… more likely to give to their community & engage in philanthropy
… more future-oriented with long-term strategic goals
Data source: Family Firm Institute
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Global Impact of Family Businesses
Family Businesses Matter in Society and the Economy!
CHALLENGES FOR FAMILY BUSINESSES
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Challenges for Family Businesses
Populationdynamics
Speed of innovation
& economic renewal
Changingglobal power
Changing & more complex family
structures
Succession not planned early
enough
NxG with different characteristics &
goals
NEXT GENERATIONDEEP DIVE
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NxG Succession Dilemma
< 5% of NxG in their 30s have intentions to take over family business
Trend: Succession intentions are decreasing
Data source: BFF InfographicsZellweger et al., GUESSS, 2015, HBR, 2014
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Characteristics
Source: BFF infographics
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Entrepreneurship as a Desirable Career
Becoming an entrepreneur
Taking over my family's business
Employee in a large firm
Employee in an SME
0% 5% 10% 15% 20% 25% 30% 35% 40%
5 years after graduation University graduatesSource: GUESSS project
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Conflict between Entrepreneurial Desire & Succession?
Source: BFF Infographic
FOSTERING NXGINTRAPRENEURIALACTING & THINKING
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Why Intrapreneurship Matters for Family Businesses
Opportunity for generations to collaboratively work on future of firm
Foster entrepreneurialism of NxG & build emotional ownership
An overall intrapreneurial setting will trigger employee engagement
Ensure continued innovativeness of firm to compete on global market
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Fostering NxG Intrapreneurialism – Talent Development
Involve them early on in the family business
Let your kids take responsibility and take decisions on their own
Allow them to be critical about the status quo and create new ideas
Ask for their opinion on things and let them grow into the firm
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Fostering NxG Intrapreneurialism – Culture of Creativity
Create a culture of intrapreneurial thinking and acting
Listen to their ideas and serve as mentor and sounding board
Turn regular learning into a playful & creative interaction
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Fostering NxG Intrapreneurialism – Market for Capital
Provide them with financial resources to work on own ideas & learn
Teach them financial literacy through letting them do things
Create a family-wide seedfund for NxG entrepreneurial ideas
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Help them experience and handle risk and their own boundaries
Allow them to make mistakes and learn from them
“Only those who dare to fail greatly can ever achieve greatly” – Robert Kennedy
Fostering NxG Intrapreneurialism – Risk & Failure
Prof. Dr. Peter VogelMail: [email protected]: www.petervogel.org
Thank you for your attention.
“Before the multinational corporation, there was family business.
Before the Industrial Revolution, there was family business. Before
the enlightenment of Greece and the Roman empire, there was
family business.” (William O’Hara)