Passing the Torch: Navigating the Challenges of Family Business Succession
Second and third-generation family businesses are the backbone of the Asian economy. They make up about 60% of all businesses in the region. The founder’s dreams are that his hard work can be passed on and carried on to the next generation to bring more success and prosperity to the family.
However, there are many difficulties and challenges to face in order to carry out a successful transition in leadership. This process requires careful planning and execution to pass on the business to the next generation.
Challenges of Family Business Succession
As the founder or current owner approaches retirement, there are several challenges to be faced during a family business succession:
- Lack of preparation. This is one of the major shortcomings of a lot of successions. When there is not an adequate amount of preparation and there are assumptions and expectations from either party, this process can go wrong quickly as there is a lot of conflict and confusion.
- Generational differences. Family succession entails passing on the business from one generation to the next. This creates difficulties due to the clashes in values, goals, and expectations for the roles and the business. A significant part of the challenge is the older generation giving way and value to the new ideas from the younger generations.
- Family dynamics. Businesses, in general, are challenging to run. Family businesses have an extra layer of difficulty to them because they carry with them the dynamics of the relationships of the parties involved. These complex systems of relationships and rivalries can complicate the process.
- Cultural factors. A lot of the younger generations are being educated abroad, and with that comes cultural influences from the West, which can be a positive impact, but at the same time can create a lack of respect for the elders, which creates resentment and conflict.
Overcoming the Challenges
Despite the many challenges to be faced during this process, hope is not lost. Many steps can be taken to create a successful passing of the torch, which include:
- Start planning early. The succession process can start from an early age by involving the upcoming generation in the business as much as possible by bringing them to work, asking them to use critical thinking with problems that arise, and sharing success stories from the company. The more we share and involve them with the business, the more they will care about it.
- Be flexible. It really helps the process to keep an open mind, as well as open communication. There needs to be a willingness to adapt when things go differently than expected.
- Get professional help. Family succession, as we mentioned before, is a tricky business, and there is no expectation of having to do it alone. We get coaches to help us train our bodies. Why wouldn’t we get help to help us train ourselves and a new generation to prepare for such an important event?
Family business succession is a complex process that can be filled with challenges, yet by planning early and getting professional help you can increase your chances of a successful transition.
Tiara Hoquee
Psychologist and Emotional Intelligence Coach
Boost Your Well-being and Success at Work: The Science Behind Mindful Breaks
In Hong Kong’s fast-paced working environment, getting caught up in tasks, projects, and meetings is incredibly easy. So we completely forget about taking breaks or even lunch.
However, we don’t realize that by not creating pauses for ourselves to regroup, we actually end up hurting the quality of our work and, more importantly, ourselves.
When we take mindful breaks throughout the day, we can:
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- Reduce stress. When our bodies are stressed, they produce cortisol which negatively impacts our physical and mental health.
- Improve focus. Clearing our minds can help us return to the present with new eyes and better concentration.
- Boost creativity. Combining relaxation and focus can improve creativity, leading to coming up with new ideas and solutions.
Why do we need mindful breaks?
Mindfulness is the practice of paying attention to the present moment without judgment. In theory, it doesn’t sound too complicated, but in reality, it takes quite a lot of practice to resist judgment.
For example, we manage to grab a salad and try our best to gobble it to get back to work as fast as possible. As we sit there, some of the thoughts that come to our mind could be:
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- Why did I leave everything for the last minute? Now I have to rush through everything.
- The task I completed was not excellent; I really could have done better.
- Why didn’t I say ______ or _______ to that colleague? It would have been so much simpler to finish this.
- I hate I have to eat so fast.
These are just a few thoughts we can name, and as you notice, they all navigate in judgment of either something we did wrong or it could be something someone else did we deem as wrong.
We produce up to 50,000 thoughts daily, and 70% to 80% are negative. This translates into 40,000 negative thoughts a day that need managing and filtering.
What is a mindful break?
Practicing mindfulness, we focus on our breath and our surroundings without letting our minds wander to the past or future. This can help us relax our bodies and minds and return to the present moment with a fresh perspective.
By taking mindful breaks, we can improve our overall health and well-being to become more productive and successful at work.
A mindful break can look many different ways. Some of the activities we suggest are: walking in nature, listening to calming music, reading a book, and meditating.
Positive Psychology and Mindful Breaks
Positive psychology studies what makes people happy and successful. It focuses on the positive aspects of the human experience, such as strengths, virtues, and resilience.
By pairing up positive psychology and mindfulness, we can make the impact of our breaks even more meaningful by creating spaces in our lives where we take care of ourselves, and by doing that, we can better take care of others.
Some examples of incorporating positive psychology into our lives can be:
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- Focusing on our strengths. We notice our shortcomings and weaknesses more than our strengths. Yet, by doing so, we can find better outcomes and solutions to our problems and build our confidence.
- Practicing gratitude. There are countless studies about the positive impacts of being grateful. The bottom line is that taking even a short moment to appreciate what you have can go a long way for mental and physical health.
- Helping others. Practicing service is a great way to boost our happiness. When we help others, we feel good about ourselves and can positively impact the world.
We can build a more positive and productive work environment by taking mindful breaks and practicing positive psychology. Take a mindful break now.
Tiara Hoquee
Psychologist and Emotional Intelligence Coach