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I am looking for some wisdom on how successful family businesses can intentionally groom the next generation to take over the family business? We can assume that the next generation wants this opportunity. I am interested to learn how the next generation's education, apprenticeships, careers (outside the family business) are best planned. And when they join the family business, how they are brought in, at what level, with what kind of mentors and advisors, and what journey they should take internally before they assume control. Also what are the challenges the businesses & next generation face if they assume leadership with no outside experience. I am hoping to hear the wisdom from astute patriachs/matriachs of families with impressive, successful, multi-generational, lasting businesses i.e. I would like to see the fruits of their wisdom in the success of their business.
Hello there! Thank you for your question regarding how successful family businesses can intentionally groom the next generation to take over the family business. The most helpful sources that I found for this topic were articles published on
The Guardian, Livemint and Forbes. The short answer is that 1)Antoine Arnault, 2)Ratan Tata and 3)Thomas F. Gilbane are 3 examples of successful next generation businessman to have taken over the family business. Below you will find a deep dive of my research findings along with how I came to this conclusion. I hope that this helps you!
METHODOLOGY
In order to begin my research, I started by searching for 2nd or more generation family business owners who have successfully grown their Family businesses. I have then screened out those owners who have been actively advised by their family members for the molding of their career. I have compiled a list of 3 such business along with their education details and the how and when were they introduced into the family business.
KEY POINTS
1) Antoine Arnault
Antoine Arnault is the son of Bernard Arnault, who according to Forbes magazine, was the fourth richest person in the world (in 2012), with an estimated net worth of $41 billion. Antoine started his career with the advertising department in Louis Vuitton and worked his way up to the position of head of communications, before becoming CEO at Berluti. He's also a member on the board of LVMH. Bernard Arnault incorporated in his son values of the family business from a very early age, so much so that Antoine reflects that the business is 'in his blood'. It was common for the Bernard to bring his son to the stores on weekends, speak about brands, discuss advertising and other business processes.
His first internship was at La Tribune, a business newspaper then owned by the company, and also worked at the Louis Vuitton store in Paris. Apart from that, his father would bring him on tours of his brands’ boutiques on Saturdays to further understand the family business. After being suggested by his family, Antoine studied business management at HEC, Montréal. He was involved in the family business when he was 25 years old.
2) Ratan Tata
Ratan Naval Tata was born on 28th December 1937, in Gujarat, India. He studied in Cornell University, obtaining a bachelors degree in architecture in structural engineering in 1962. After that, in 1975, he went to Harvard Business School for a degree in the Advanced Management Program. Ratan Tata started his career in early 1960's in the Tata Group on advise of his father, as an apprentice at one of its plants. He rapidly rose through the ranks to become the chairman of the company in 1991. Under his leadership the Tata Group expanded across the globe, becoming the 7th largest producer of steel in the world. The TATA group also has acquired many big brands such as Tetley, Jaguar, Land Rover, Corus, etc.
3) Thomas F. Gilbane
Gilabne inc. is a family owned business that generates most of tis income through construction. The company was ranked 147th in the Forbes top 500 list for 2014. Though the company rose to fame with the help of world war 2 contracts, the maximum growth for the company occurred in the period 1970-2000, which was spearheaded under the leadership of Thomas F. Gilbane. Thomas F. Gilbane completed his Bachelor of Business Administration in Business Management from Babson College, Massachusetts in 1970. He studied further to become a Master of Science in Civil Engineering & Project Management from Massachusetts Institute of Technology, Cambridge in 1975. After a short hiatus where he performed various roles at his family business, Thomas F. Gilbane completed his graduation in Advanced Management Program from Harvard University in 1984. He was an integral part of the Gilbane Building company, joining the company in 1970 as vice president, and went on to become its Chief Executive Officer in 2004. In 2008, he finally took over as the CEO of Gilbane Inc., heading the entire company to new heights.
CONCLUSION
Based on my research, I have concluded that 1)Antoine Arnault, 2)Ratan Tata and 3)Thomas F. Gilbane are 3 examples of successful next generation businessman to have taken over the family business.
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