engaging the next generation of intrapreneurs in the family business - bff family business think...

Prof. Dr. Peter Vogel / www.petervogel.org / info@petervogel.org / @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: info@petervogel.orgWeb: 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)