Peter Buffett, Emmy award-winning musician, author, philanthropist, and son of high-profile investor Warren Buffett, was recently quoted in CampdenFB as stating “Next gens need to forge their own path in life, based on what interests them, instead of simply entering the family business.”
He continued, “The support, the privilege, really comes from having two parents who said and believed I could do anything…that support didn’t come in the form of a cheque. It came in the form of love and nurturing and respect for us finding our way, falling down [and] figuring out how to get up ourselves.” To read the full article on the CampdenFB website, please click here.
Frankly, we couldn’t agree more. The issue of entitlement in the next generation, which we’ve covered extensively in the past, still pervades strongly in the minds of both the senior and next generation.
But what is entitlement, and how did we get here?
Most often, ‘entitlement’ is described as the expectation of being ‘owed’ or ‘deserving’ some form of reward. In fact, the problem isn’t the feeling of entitlement. Rather, it’s how family members publicly act on their feelings of entitlement and how these actions are perceived by others.
For example, consider the human resources director in a family business whose efforts at building a culture of accountability become thwarted when members of the next generation fly off for vacation in the corporate jet the day after layoffs. That’s a slap that leaves an indelible mark on non-family member employees.
How we got here is another story. Many baby boomers achieved staggering financial success in their family businesses. In turn, they lived the personal lives they always wanted to – vacations, cars, multiple homes, well-funded college educations, and more.
It’s with no surprise, even in the face of a global recession, that many in Generations X and Y expect that the family business should provide for them the same way it provided for their parents. Is it valid? No. Is this an excuse? No. But does it shed a little light as to why entitlement exists? Yes.
So where do we go from here? There are countless steps that can be taken to help reduce the sense of entitlement in a family business; however, it all starts with one simple tool – communication. Imparting the history and legacy of your family business, both the ups and the downs, helps the younger generation understand both where you came from, and why you exist today. Of course, there are other steps, including a definition of roles and responsibilities, leadership development, rigorous entry criteria, and more.
Of course, we’re glossing over the issue, and more could be said about entitlement and its harsh effects on family businesses. But the problem isn’t solved through blame. Rather, the problem is solved by the senior and younger generations coming together to acknowledge it, communicate clearly on the subject, and work side-by-side to create a culture and set of values that address the issue.
To read more about the issues of entitlement and its effect on family businesses, click here.
Related Posts:
- Entitlement: The Epidemic of Our Era
- Performance Appraisals: Openly Dealing with the Family Business
- 3 Family Business Lessons from Ralph Lauren
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