Family businesses are crucial to our economy, and one of the essential components of their longevity is proactive development of rising family business leaders. However, family businesses face unique challenges in this area. Being able to assess and develop next gen and rising leaders in the organization– both family and non-family– is often hindered by complex family dynamics, communication issues and lack of clarity around next gen capabilities. In this blog, we’ll talk about how to use 360 assessments to address some of these challenges, why 360’s are valuable, and how to put the information gathered from 360’s to use.
The Benefits of 360-Assessments
According to Harvard Business Review’s article, “What Makes a 360-Degree Review Successful?” by Jack Zenger and Joseph Folkman, 360 assessments lead to expanded self-awareness, a direct link between business outcomes and leadership behavior and more. They can identify the gaps in leadership and development opportunities that may not have been evident before. By using a 360-degree assessment tool, family businesses can provide a more comprehensive view of the potential future leaders, including their strengths and areas of improvement.
How 360 Assessments Aid in Decision Making
A 360-degree assessment tool also encourages open and honest communication within the organization, which is essential in family businesses. According to the Harvard Business Review, transparency and communication within the organization can be a significant factor in the success of a 360-degree review, in turn leading to more timely, critical decision making. It allows family members and other stakeholders to provide feedback and input into the succession planning process, helping to identify potential conflicts and areas of disagreement. Additionally, it promotes an environment of trust, which is critical in family businesses.
A 360 Tool Designed for Family Business
Using a 360-degree assessment tool, such as the Assess Next Gen 360, can also help family businesses identify potential leaders and develop their skills. The tool helps family businesses to identify the necessary skills, knowledge, and abilities required for future leadership positions, far in advance. This helps to ensure that the business continues to thrive for generations to come.
Furthermore, by using a 360-degree assessment tool, family businesses can ensure a smooth transition of leadership and ownership from one generation to the next, reducing the risk of loss of profitability. Business continuity and profitability depend on a successful leadership transition from one generation to the next. A 360-degree assessment tool provides a structured and objective approach to succession planning, ensuring that the business continues to thrive for generations to come.
In conclusion, using a 360-degree assessment tool, such as the Assess Next Gen 360, can provide family businesses with valuable insights into the skills, knowledge, and abilities of potential future leaders. It promotes transparency and communication within the organization, identifies gaps in leadership, and helps develop future leaders. By using a structured and objective approach to succession planning, family businesses can ensure business continuity, reduce the risk of loss of profitability, and position themselves for future success.