In the dynamic landscape of family business and current economic environment, it’s critical to prepare the next generation to ensure they’re comfortable to take over operations.
In this process, it’s important to recognise the Rising Generation doesn’t learn the same way as their parents, so leveraging innovative methods of educating them could enhance the way they successfully take on the business.
Gamification is the process of adding games and game like elements to something to encourage participation. The goal of gamification is to inspire, collaborate, share and interact. This offers the Rising Generation a new way to engage and learn about taking over the family business.
But how exactly can gamification be effectively implemented to ensure the next generation is not only prepared but also enthusiastic about their future responsibilities?
The gamification success
In our experience we have seen gamification be used as a powerful learning tool on several occasions. By incorporating game-based learning, there has been significant successes in motivating the Rising Generation to upskill and get excited about the challenges and opportunities of taking over the family business.
It is easy to talk hypotheticals when discussing investments or business strategies, but by incorporating a small financial stake, it can enhance engagement, encouraging the Rising Generation to make informed decisions to maximise their gains. This practical approach makes learning more tangible and teaches responsibility in the process.
Every family and budget are different, so if this is a method you want to explore, it’s important to ensure that the exercise remains a positive and educational experience without undue stress or risk by setting a realistic budget.
We’ve seen this strategy used in different ways, and some examples are below:
A property developer
A member of the Rising Generation in a family business wanted to run the entire portfolio of developments and he had so many ideas and thoughts. The parents decided to lend him a smaller amount to run his own development and learn along the way. This gave them confidence he could make money before enabling him to run their entire operations.
A farmer
A member of the Rising Generation in the family business wanted to run all their cattle operations but the incumbent generation wasn’t sure they were ready, so he transferred the feedlot enterprise and ensured his son had a good mentor. Sometimes younger members of the family may not always respond well to guidance from within the family. In such cases, introducing a respected mentor can make a significant difference. A mentor who is admired and trusted can provide the necessary support and guidance, ensuring the Rising Generation are set up for success.
A family office
The incumbent generation running the Family Office provided the Rising Generation a pool of funds to invest. In this example of gamification, we saw a very healthy level of competition. The Rising Generation wanted to obtain a better return on investment than their parents, this provided self-motivation to research and learn.
Investments
A family introduced an investment trust for all family members to invest a portion of their monthly salary. They discussed the dividends and apportioned them depending on the amount invested. This again led to healthy competition amongst siblings. These conversations inspired them to invest more and realise that they can change their financial future by consistently setting aside a portion of their earnings and investing it wisely.
The benefits of exploring new ways to learn through gamification
The benefits of exploring innovative ways to educate the Rising Generation through gamification include:
- Mentorship – Gamification allows the parents to introduce a mentor to support and provide guidance to the Rising Generation.
- Self-Motivation – Gamification can light a fire within the Rising Generation. This motivates them to learn more, study more and research more to achieve greater results.
- Healthy competition – Gamification can provide healthy competition between siblings or between generations, breaking down the barriers to communication.
- Parental confidence – Gamification enables the incumbent generation to watch the Rising Generation in business, providing them confidence in allowing their children to take over the business.
We’re here to help
If you’d like to discuss any of the above or interested in taking the next step to educating the Rising Generation, reach out to our experts today or learn more about how our Rising generation financial acumen training services can help you through the link below.
Learn more about how our Rising generation financial acumen training services can help you
