Members of the third generation who want to be part of a family business often seek ways to develop their professional skills. This helps the company avoid the unfortunate fate of having unqualified family members in key positions drag down performance, which may lead to the business simply refusing to hire family members at all. Also, family members who are not employees often resent being seen as passive owners, draining the business of cash; they want to develop the skills they need to become active and informed shareholders. Creative third-generation families have responded to these needs by establishing development programs.

One family business, which has grown to become a huge multinational conglomerate, developed a process to prepare third- and fourth-generation family members for different roles in the business. With the help of Michele Desjardins of Lansberg, Gersick & Associates, the family initiated a Career Development Committee consisting of the nonfamily president of the company, its director of human resources, the leader of the family office and Desjardins. “The rationale was that there isn’t a horse race in the family for a position; there is not one position or one winner. Rather, it allows each family member to progress and find a place that suits him,” she notes.

As a family member comes of age, the committee notifies him of the opportunity to participate in the career development program. At any time, if he thinks he might have an interest in joining the business, he can name himself as a candidate. The committee then helps the individual create an internship in the business that fits his strengths and interests. All interested family members can thereby learn something about the business and what it takes to succeed in it.

The committee provides a thorough assessment process, similar to the one the company uses to vet potential executives. The committee helps the candidate develop a five-year development plan; this can involve jobs within the company, as well as learning opportunities outside it. The committee ensures that the family members who enter the business are clearly qualified and ready to take up professional roles in the business (a career path does not necessarily lead to a leadership role). To date, four family members have taken this route, and more are waiting in the wings.

For family-member owners who want to feel more connected to the company, but who are not interested in working in the business, the family has another program that offers a shortened internship and outside courses to help them become enlightened and responsible shareholders, ready to participate in governance.

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