Actively developing the next generation
GOVERNANCE
Context
A Trustee of a substantial family holding structure sought support with a challenge familiar to many families in business: how to involve the next generation in governance without compromising board quality.
While confident in the performance of the current governance model and the calibre of both family and non-family directors, the Trustee was looking ahead. As the current generation started planning to step back, they wanted to appoint the next generation to board roles when they reached their forties (they were in their thirties at the time). The priority was to begin development now, without any perceived or actual dilution in governance standards.
Work
Our partner worked with the Trustee on a structured assessment and planning project, leading to a long-term development solution. The initial phase included benchmarking how other families had approached similar challenges, as well as identifying the unique constraints of the current system.
Based on these insights, the Trustee decided to establish a dedicated “development committee,” independent of company resources. A rigorous search process identified three individuals with distinguished executive and board experience, all with strong people development skills. A top HR executive was also engaged to oversee the committee. All were recruited on a part-time basis, paid by the day.
Our partner helped the development committee design and implement a clear process for each family member, including:
Assessing the unique contributions a family member could bring to a board.
Defining the minimum board-level skill requirements for each board position.
Evaluating the current career status and capabilities of each Next Gen member.
Identifying developmental gaps and areas for improvement.
Each individual underwent a detailed review processes, including interviews, reference checks, the analysis of assessments and evaluations, and one-on-one meetings with committee members.
Based on this systematic assessment, the combined experience of the committee was brought to bear and tailored feedback was provided to each Next Gen member. A mutually agreed-upon development plan was formulated, aligning with their board role aspirations, anticipated timeline for readiness, commitment level, and willingness to invest in their development.
The programme focused as much on the soft skills required in the Board Room as it did with the hard skills acquired through professional experience. Maintaining a sense of unity and fairness was critical and, wherever possible, programme elements were delivered to them collectively as a group, creating trust amongst the participants.
This approach ensured a strategic and transparent pathway for grooming the next generation of board leaders, enhancing both their readiness and the governance effectiveness of the organisation.
Impact
The programme is now underway and has already significantly changed the mindset of the participants. They have greater clarity about expectations, a clearer development path that fits with their own professional challenges, and a mentor/committee with whom to interact and ask for feedback and advice.