Over the coming years, many Australian family businesses are in for a sharp change at the top. As the baby-boomer generation begins to retire or take a backseat within an organisation, it will be the millennials and Generation Y leaders stepping up the plate with new ideas and philosophies.
However, these new processes are not always well-received within the structure of a family business. With older members of the team often entrenched in other systems, a new leader's fresh ideas could have trouble getting off the starting blocks. In fact, this point was revealed as part of a recent PwC report.
Next-gen business leaders facing hurdles
Polling more than 260 family members from 31 countries who are likely to take over a business in the near future, close to half (40 percent) noted that their new ideas about digital were hard to get passed by senior members. In fact, many thought new technology was a significant barrier for family businesses compared to other enterprise structures.
PwC's Head of Family, Business and Wealth, Stuart Morley, explained that family businesses can't afford to fall behind when it comes to new technology.
"It's understandable the current generation is cautious about making big investments in digital, considering how fast technology is changing. However, standing still is not an option," he said.
"The trick for family businesses is to harness the unique qualities that make them different, such as ownership structures that allow decisions to be made for longer term pay-off, and use this to their advantage."
Leadership - a common issue
With 70 percent of all enterprises in Australia taking a family model, as reported by Family Business Australia, there are hundreds of thousands of organisations likely to move through a period of transition in the near future. To ensure this handover runs smoothly, everyone needs to be on the same page in terms of communication and letting go of ownership control.
As such, when a new leader makes a decision in relation to technology adoption and new processes, they need to be supported rather than questioned. Just because an idea is new, doesn't mean it is wrong. Take web conferencing, for example.
Put simply, web conferencing allows two parties to view the same screen in real-time. Whether it is a presentation, document, survey or video, it's an efficient and cost-effective method of hosting a meeting. Removing the problems associated with corporate travel, missed deadlines and budget restraints, web conferencing moves your business into the 21st century.
To learn more about web conferencing and how it can support your business direction, contact our expert team today.