While much is written about succession planning and family charters, little is said about the challenges third generation business owners or managers face and the problems and issues we inherit. Will we ever live up to the inspirational drive of the founding generation? How do we retain our valuable legacy while instilling a progressive culture within our multigenerational workforce?
Before I even began my career in the family business, I was cursed. Cursed by a cliché, a proverbial saying, a theory that has been well studied and documented – the third generation curse. If I were to believe all that I see and hear, then statistically there is an 88% chance I am doomed to failure and a mere 12% chance I will succeed.
Apparently, one of the biggest challenges a family business faces is the generational transition, and ultimately many do not survive. Having worked in the business for 16 years, my father has now passed the baton of responsibility on to me as he eases himself into retirement. I have gone from being the boss’s daughter to being the boss.
My grandfather established Hopkins in 1957 for the princely sum of £50. Originally an electrical workshop, the company has since become an industry leader in commercial catering equipment to the foodservice industry, both in the UK and worldwide, and has a turnover of £4.7 million. Our current team of 60 staff have over 450 combined years of service between them – ten members were recruited by my grandfather and have each been with us for over 30 years. In addition to my immediate family, I very much consider the workforce my extended family.
Inheriting such a long established business is an incredible privilege, but comes with unique challenges. Managed correctly, these can become positive forces and bring the potential for business growth. It is an opportunity to build on what has gone on before, while bringing in new knowledge and modernisation.
When my father took over after my grandfather passed away there was a deep rooted resistance to change within the company. Over the years this has quietened and change is now embedded in our corporate culture. This was perhaps one of the biggest issues to overcome. When I communicate my vision for the future to the team they understand that change is inevitable, it is embraced, and this is pivotal to our future success.
It is common within any business for a change in leadership to cause a certain amount of unrest with employees, suppliers and clients. Conveying my intentions for the business from the outset, in my opinion, has been paramount to easing any uncertainty about the future. Assuring stakeholders that there is a long-term commitment, both emotionally and financially, forges loyalty and strengthens relationships, creating a firm foundation upon which to build.
My biggest obstacle to overcome is perhaps my technical knowledge – or the lack thereof! Both of my predecessors were qualified engineers. Can someone who knows very little about the subject propel an engineering company to new levels of growth? Absolutely they can. The best piece of business advice I was ever given was “employ your weaknesses”. Admit your shortcomings and acknowledge that you really can’t do everything. Surround yourself with the right people, people whose strengths are your weaknesses, and these people in turn will help you achieve your goals.
These issues barely even scratch the surface of the complexities of generational transition, many of which no succession plan or family charter can ever possibly prepare you for. Each family business has its own dynamics and idiosyncrasies, each generation will face their own particular issues and there are no prescriptive solutions. In addition, we are still vulnerable to the same pressures that are prevalent in any business, no matter the structure of their ownership.
So how can I ensure that I defy the third generation curse, become a member of the 12% club and leave a legacy for my own daughter? The truth is, I can’t. To me, succession is not just about the actual passage of one leader to another – it encompasses the entire stewardship. I will always endeavour to retain the commitment, passion, innovation and loyalty that my forefathers had. I will continue to strive for the success of not only the business, but also my extended family. And in doing so I too will hopefully one day pass the baton to the next generation.
Victoria Hopkins is the managing director of Hopkins Catering Equipment Ltd.
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