This article is an extract from Transmission Private’s monthly newsletter, The Lede, which tracks the world of reputation management for private clients. You can sign up for the newsletter on our website via the tab at the bottom of this article or by completing the form here.

Good afternoon. 👋 Welcome to this month’s edition of The Lede, themed on next-gen family members. Millennials and Gen Z-ers stalk the nightmares of executives. Their attitudes confound executives, whether on technology, diversity, or sustainability. And they threaten companies with a toxic cocktail of social activism, changing expectations, and digital disruption.

So, how can businesses better understand millennials? It’s a question many family businesses struggle with. And yet, I’m endlessly surprised to see how many family business owners have never thought to consult their resident Millennial or Gen-Z expert first... their own children. 👶 Next-gen members are uniquely positioned to understand how the world is changing and how businesses can (and should) adapt. The distinct way they see the world can be turned into a commercial advantage for the family firm.

What does this mean in practice? Family businesses need to better integrate the perspectives of younger family members into their strategic decision-making, especially at Board level. No one understands the changing opinions of clients, consumers, and society at large better than next-gen members themselves. Their opinions may sometimes grate on the instincts of Boards and, at times, seem uncommercial but their perspective will often be closer to the changing nature of the business’ customer base than anyone else around the table. Boards should welcome the challenge.

Will this benefit the business’ reputation too? Absolutely. Not only should next-gen members be more integrated into management processes but family businesses need to do a better job at showcasing that role to stakeholders as well, whether that’s to business partners, financial institutions, or otherwise. Banks, partners, and suppliers are just as concerned about changing cultural and economic attitudes as the rest of us. Giving visibility to a pipeline of younger talent in their family business provides a reassuring message that you are best-placed to understand this fast-moving, increasingly digital world.

How can next-gens change perceptions of a business? The integration of younger members of the family into decision-making sends out a number of important, business-critical messages:

• Digital competency. Younger members will often bring new skills and competencies to a business, especially across technology and digital marketing.
• Cultural awareness. Next-gen members understand the underlying cultural shifts that are taking place in society — the increasing importance of sustainability, changing approaches to diversity in the workplace, and much else besides.
• Continuity planning. Ultimately, it is a light — but important — signal that should something unexpected happen to the existing leadership, there is a top-class bench of new talent that will be able to drive the business forward in the future.

The takeaway... family businesses spend a huge amount of money and human resource on navigating changing consumer and society trends. Often, the best answer is in the bedroom down the hallway. 🛏️