In a successful family business, at any point there are 3 phases at work “Learning – Doing – Teaching”
In the founding years, the business is built on the founders early learning experiences of what worked and what did not worked. Unknowingly his personal values and guiding principles become the values and guiding principles for the business. In this phase, the founder’s early age experiences become the base for doing.
When the founder is doing things, his children are in the learning phase. They watch and listen carefully. Unknowingly the father shares the unending demands that the business poses on him and how it is taking toll on him – this sharing generally creates a negative impression about the business in the children’s mind. Have you ever thought, why the kids are not enthusiastic in joining the family business?
When children join the family business, it’s their time of Doing phase. Most of the founders are unprepared for this situation. They feel that their key to success is doing; and they have mastered that art. They find it difficult to let go Doing and learn about Teaching.
Most family businesses fail in the teaching phase. The teachers are ill prepared and they impart knowledge on piecemeal basis. The result – students are demotivated to learn. Overtime students get disillusioned, frustrated and trapped. They continue to hang around because they get a monthly scholarship under the head of salary or pocket money and prerequisite like car, office cabin, etc.
Teaching is a crucial phase. There is ample time for the founder to plan, as they are well aware of the time when children are likely to join the business. The teacher needs to think of the areas that children needs to be exposed – so they understand the intricacies of the business. They also need to be trained in the art of decision making (this is really tough as most decisions in family businesses are based on owner’s gut feeling). Apart from this, teaching should cover the most important business aspect of managing people. When the founder is teaching, the children are doing and the grandchildren are learning. This is happening concurrently and unknowingly.
It is time we realise the importance of teaching, so the next generation can learn and become effective doers. At the end it is our job