ILLUSTRATION BY RUTH MACAPAGAL
In my experience as a “global management guru,” as Bloomberg has called me, I have seen first-hand that the longevity and success of an organization hinge on the ability to cultivate a strong, resilient next generation of leaders. This is true for both family businesses and regular enterprises.
While talent is often celebrated, it is resilience and grit that are the true drivers of entrepreneurial and professional success—particularly within family businesses, where the next generation may not have had to build the business from the ground up. I will also provide practical steps for business owners to instill resilience and grit in their successors, drawing inspiration from many of the business leaders I have advised and mentored, including billionaire entrepreneurs.
The importance of resilience and grit in business
Resilience and grit are essential for navigating the inevitable challenges and setbacks that arise in any business environment. These qualities enable individuals to persist in the face of adversity, adapt to changing circumstances and continue striving toward their goals despite obstacles. In contrast to talent, which can be seen as an inherent ability, resilience and grit are developed through experiences and deliberate practice.
Our global experience
At the Tom Oliver Group, our extensive global experience working with owners of family business conglomerates has consistently shown that successful leaders universally display resilience, grit, perseverance and tenacity. These owners view challenges as opportunities for growth and maintain a humble attitude despite their achievements. However, we often observe that the next generation struggles to develop these same qualities, largely due to growing up in environments of comfort and security. This gap underscores the necessity of intentional efforts to cultivate resilience and grit in successors, ensuring they are prepared to lead with the same strength and humility as their predecessors.
Family businesses: unique challenges and opportunities
Family businesses present a unique set of challenges when it comes to nurturing resilience and grit in the next generation. Often, the successors are born into a life of relative comfort, shielded from the hardships that the founding generation faced while building the business. This can lead to a lack of appreciation for the value of perseverance and hard work. However, it also presents an opportunity to consciously instill these qualities, ensuring that the next generation is equipped to sustain and grow the business.
The comfort conundrumThe successors in family businesses often grow up in an environment of security and privilege. While this provides them with numerous advantages, it can also create a comfort zone that stifles the development of resilience and grit. Without facing significant challenges, they may lack the experience needed to navigate difficult situations effectively.
Essential qualities for success
Resilience and grit are not just important for business success; they are crucial for success in any field. These qualities enable individuals to recover from setbacks, maintain their focus on long-term goals and exhibit a level of determination that surpasses mere talent. In family businesses, nurturing these traits in the next generation is vital to ensure the continuity and growth of the enterprise.
6 practical steps to build resilience and grit
1. Expose them to real-world challenges.
• Simulated crises: Create simulated business crises that require the next generation to step in, make decisions and deal with the consequences.
• Cross-functional roles: Rotate them through various roles within the company to expose them to different aspects of the business and the challenges each department faces.
2. Encourage personal accountability.
• Independent projects: Assign them independent projects with clear objectives and accountability for outcomes. This fosters a sense of ownership and responsibility.
• Performance reviews: Conduct regular, honest performance reviews that provide constructive feedback and highlight areas for improvement.
3. Provide mentorship and coaching.
• Internal mentors: Pair them with experienced mentors within the company who can provide guidance, share experiences and offer support.
• External coaches: Engage external coaches to provide an unbiased perspective and help them develop specific skills and attributes.
4. Cultivate a growth mindset.
• Celebrate effort: Emphasize the importance of effort and learning from mistakes rather than focusing solely on outcomes.
• Continuous learning: Encourage continuous learning through workshops, courses and reading materials that promote personal and professional growth.
5. Foster emotional resilience.
• Stress management: Provide training on stress management techniques such as mindfulness, meditation and exercise.
• Support networks: Create support networks within the company where they can share experiences and seek advice from peers.
6. Promote self-reliance.
• Decision-making autonomy: Gradually increase their decision-making autonomy to build confidence and self-reliance.
• Problem-solving opportunities: Present them with complex problems that require creative and strategic thinking to solve.
From Branson to Bezos
Jeff Bezos, the founder of Amazon, is a strong advocate for resilience and grit. He believes that one of the key traits that drive success is the ability to withstand adversity and keep pushing forward. Bezos often speaks about the importance of being resourceful and self-reliant—qualities that have been instrumental in Amazon’s growth from a small online bookstore to a global e-commerce giant.
Similarly, Richard Branson, the founder of the Virgin Group, emphasizes the significance of resilience and grit. Branson’s career is a testament to the power of perseverance and the willingness to take risks. He encourages young entrepreneurs to embrace failure as a learning opportunity and to remain tenacious in the pursuit of their goals.
Jensen Huang, co-founder and CEO of NVIDIA, underscores the significance of hardship and suffering as the foundation of grit and resilience. Huang often reflects on the early, challenging years of NVIDIA, where the company faced numerous obstacles that demanded perseverance and innovation. He believes that enduring tough challenges helps build a resilient and gritty mindset.
To nurture these qualities, Huang advocates for creating high-stakes challenges within the organization. Additionally, involving the next generation in strategic initiatives with significant impact on the company’s future can foster a sense of responsibility and resilience.
What will you do to build a robust and resilient next generation of leaders? INQ