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Succession is one of the most talked about issues for owners and managers of family businesses. But what of the next generation themselves? How do they feel about the prospect of running the family business and how should those at the helm successfully engage the next generation of family business leaders?

Dr Gwenllian Williams, managing director of deWinton-Williams Consulting, is recognised for her appreciation of family businesses and the challenges of running a business alongside family members. She was guest speaker at the latest in Wilsons’ Family Business Forum events in the East and West of the region, and made some thought-provoking observations as to the psychology of the family business, based on her own research.

Many of Dr Wiliams’ observations struck a chord for my sister Charlotte and I; we took over the day-to-day running of the family business three years ago, and our father and mother are still involved.

Some time ago, Charlotte and I recognised the value of learning from other family business owners and managers, which prompted the creation of the forums.

Charlotte and I were involved in the business from an early age, often coming into Wilsons’ Nottingham offices to help. Our parents frequently involved us in discussions about the business around the dinner table and encouraged us to come into the office to help open the post before school, which led to us seeing the business in a positive light and as our destiny, rather than a dungeon waiting to capture us in adulthood.

Clear governance and a succession plan are important. Underpinning this should be clear roles for the next generation and a timescale of the future plan. Family members shouldn’t simply arrive at the business, but their entrance should be carefully planned for future generations, alongside the family and business vision and goals.

Dr Williams advocates the next generation actively acquiring experiences outside of the business and again from personal experience, I would agree. Whether through education, higher education or experience from other businesses or cultures, this collateral can do much to assist the next generation in adding value to the business to assist its sustainability and development, and that of the next generations themselves. And education shouldn’t stop the day you join the business, continued learning is valuable right up until exit.

The next generation’s integration into the business is not only important to the individuals concerned. Their introduction to an existing workforce is equally important, perhaps through the use of an internal mentor. Colleagues and potential employees need to appreciate the rationale behind the next generation joining the business, their role and the expectation placed on that individual, in order to garner their understanding and support.

Transition barriers or conflict need to be dealt with early. This is especially true for siblings - sibling rivalry must be resolved before the owner generation exits the business. An element of this includes deciding which sibling is going to be the boss, and this may not automatically be the eldest. We agreed that I should take on the role of CEO and Charlotte MD, which embraces our skill sets and strengths. Charlotte’s focus is on new business and developing relationships with clients, whilst I am more focused on business planning and strategy.

Engagements and empowerment are two words Dr Williams used in her presentations and she recommends using mentors, trainers and coaches to achieve them. Charlotte and I have an internal mentor and a non family mentor from outside the business.

For a successful family business to create another generation of success, it is important to engage early, encourage but not assume, understand barriers and reduce them through planning and letting go, and to create a support strategy and address conflicts.

Annabel Prow is CEO of Nottingham-based The Wilson Organisation. Last year it launched the Midlands Family Business Awards, for which Insider is the media partner. Visit www.familybusinessawards.co.uk for more information.