While respecting tradition and continuity, most family businesses have undergone significant change over the past 30 years alongside most of the economy. The propitious expansion of trade and global value chains during the Third Wave of Globalisation, roughly between the early 1990s and the late 2010s, means that many family businesses could often seek better suppliers, enter new markets, optimize funding, develop new products and establish a legacy of international success which new generations can build on.
What many found during the various exogenous shocks of the late 2010s and early 2020s was that it also left many family businesses perhaps less than customarily exposed to aspects of business previous generations might not have tackled: geopolitical risk, regionalization, and friend-shoring or supply-chain operational risk, all in the context of a continuous public relations environment where any mistake is eminently shareable to consumers and investors alike.
Give or take the annual GDP of the Ivory Coast, it suffices to say that a tremendous amount of funds will be heading toward Ukraine, creating tremendous opportunities for growth, as well as regional competition for attention and additional investments. After a turbulent period in the 1990s, Eastern Europe has once again become a topic of interest. When the ongoing conflict in Ukraine ends, regional superclans – ambitious regional family business- will have an opportunity to capitalize on a favorable investment and expansion climate.
This leaves the next generation of family business leaders in the difficult situation of having not only to learn from the previous generation but also acquire a whole new host of skills that may not have been fully formalized by the traditional purveyors of management advice and business wisdom. The current business landscape demands a new generation of family business leaders who can navigate uncharted territories with confidence. These leaders must possess diverse skills, including managing global communications and assessing political risks, as well as the insight to manage marketing and corporate communications in the context of new (geo)political realities.
As the world becomes more fragmented and harder and harder to understand, the next generation of superclan leaders must be equipped to navigate a rapidly changing business environment. Emerging economies, in particular, require leaders who can adapt quickly to new challenges and opportunities. To succeed in this context, these leaders need access to training and advice that is tailored to the realities of the modern era.
To build the necessary expertise for the new era, emerging superclan leaders should focus on three key areas. The first is business expansion through internationalization, which involves understanding the complexities of global trade and investment. The second area of expertise is global strategic communications, which is essential for building brand recognition and managing a company’s reputation in an era of instant global communication. Finally, leaders must have a deep understanding of risk management in the context of great power competition. This requires an ability to assess and respond to geopolitical risks, including trade disputes, sanctions, and other forms of economic coercion. By developing these areas of expertise, the next generation of family business leaders can succeed in the rapidly evolving business landscape.
We know it very well: jumping in the deep end of the pool from the start rarely ends well. That is where professional training comes in. It does not replace intelligence or character, nor does it suffice in the absence of previous generations’ advice and guidance. It does however allow for new generations of family business leaders to confront the new business environment armed with the skill set needed to traverse it and turn change into opportunity with the same success as those who used the Third Wave of Globalization to take a family business and turn it into a thriving international family business.