Why is next-generation engagement both important and challenging – and what are strategies for success? Three family office experts offer their thoughts:
We often refer to the ‘next generation’ (NG) as ‘the kids,’ but this isn’t always accurate. Baby boomers, being the longest-living generation to date, have remained active for longer than any previous generation. Consequently, the ‘next generation’ can encompass a wide age range, starting from 60 and downwards, often including accomplished professionals.
Moreover, we must consider what ‘next generation’ refers to. Are we talking about the next generation of owners, employees, trustees, beneficiaries, or family members? There are many ‘next’ individuals in multigenerational family enterprises.
If we focus on the ‘next-generation’ shareholders and beneficiaries who are in the midst of ‘adulting’ (ages 18-28, 30, 35, or even older), in my experience, the most effective way to engage them is through respectful communication, treating them as peers — as if they are already shareholders. They should be granted the same ‘information rights’ as shareholders and provided with safe spaces to express their vulnerabilities, share concerns, and feel acknowledged. This approach offers the best opportunity to address and overcome the dysfunctions (such as lack of clarity and commitment) that can afflict well-meaning family enterprises.
— Steve Lytle, family shareholder of The Agnew Company
Pitcairn never wants to be looked at as ‘my father’s stodgy investment firm.’ It’s critical for our long-term success that we have relatability across the complete age spectrum. It’s important that we are engaging with the next generation and understanding what’s important to and for them. We continue to invest in and build out our family engagement and education team. This is not new for our firm; instead, we continue to get better each year. Our goal is to continue improving our client experience for all of our clients, from the first-generation wealth creator to the sixth generation and everyone in between.
— Nathan Sonnenberg, Chief Investment Officer, Pitcairn
We try to keep them involved by inviting anyone 21 years old and older to our shareholder meetings twice a year and making them eligible to serve on some committees such as our investment committee. We also do educational sessions on the businesses for those that are not involved.
— Joe Tracy, CEO, Dot Family Holdings
