It is typical for a family business to have employees that span an age range from early twenties or even late 'teens into 60's and older. This happens not only because family often has members from three generations active as employees; but also because computer and software skills for today's information systems are often possessed by a younger work group.

At same time, until late 2001 labor market has generally been tight so that retaining and motivating your people is a real challenge. But what do your people really want? Do they all want same things?

Aside from younger workers thinking "...that old dinosaur might think he's T-Rex, but he just doesn't understand that world's changed..."

And "more senior" people occasionally lapsing into wistfulness and thinking "I wish I was young again and KNEW EVERYTHING!..."

Is world changing? Are there really differences between generations?

Let's look at some demographic information and see if there are insights that we can use to help... Generation Depression Era Baby Boomers X [for "unknown"] Y [follows X] Also known as Dinosaurs Boomers Gen Xers Gen D [for digital or debt] Born 1920 - 1945 1946 - 1964 1965 - 1976 1977 - 1995 Age in 2003 58 - 83 39 - 57 27 - 38 8 - 26 Job orientation married to job date job no job security unknown, yet

Depression era generation: Influenced by Great Depression in 1930's. Parents in this group lived through it, younger members heard much about it. Food on table and a roof for shelter dominated. Known for loyalty to employer, sense of duty, team orientation. Expect loyalty from employer.

Boomers question everything. They feel things will always get better; they will always be able to have more. They look for fulfillment, challenge and self-satisfaction in job.

Gen Xers [X stands for unknown since demographers couldn't identify any really defining characteristic of this group] need freedom to operate on their own terms. They feel life is about more than work; blame Boomers [their parents] for pollution, mass consumption. Will move if job doesn't fit. Transitory. They know they have no job security.

Gen Y [follows X] [sometimes referred as Gen D - for Digital or Debt!] are just entering full-time work force, although many have worked part-time throughout high school. High speed and instant orientation; more choices than any previous generation [they have grown up with computers and over 100 channels on TV]. They are used to a "virtual" world.

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Running a successful family business is substantially more difficult than running a non-family business. There are many contributing factors. Conflict between generations as to strategic requirements of business - what are goals and how do we get there. Financial information is rarely disseminated to even top managers (family and non family members) thereby thwarting those managers who, in fact, may be skilled in strategic planning, budgeting, costing, pricing, etc. A family business will generally have more severe problems in recruiting and retaining non family professional managers since upward mobility and advancement are restricted. The dynamics for successfully managing a family business are blurred and often difficult to ascertain - is it a Family First Business or a Business First Family? Because a family business tends to be more paternalistic in management style than a non family business, performance standards tend to be poorly described or non-existent for most segments of business. Because hard operations management information is scarce or not existent, outside advisors such as attorneys, financial planners, CPA's and other professional counselors rely on perceptions of reality steeped more in "how it has always been" rather than "how much better should it be". This is a crucial deficiency because it disengages professional resources from serving both business and family as well as they could if they were dealing with timely, accurate and factual operating information about business. The management dynamics of a family business are often more consensual than action or performance orientated. Thus, a family business is generally not able to react to problems and take required remedial action as quickly as a non family business. The ego of an entrepreneur is such that they feel capable of doing everything themselves. Because they feel they can do "better" than anyone else, it is difficult for them to let go - either to delegate to subordinates or asking for professional help even when they know that help is needed. Professional fees are often difficult to cost justify or value. The major contributing factor, however, is that a family business tends to procrastinate on bringing in professional resources until "ox is gored and already in ditch". The analogy of Fram oil filter commercial "you can pay me now or pay me later" is aptly applied to a family business situation except consequences can be substantially more expensive when survival of business is at stake. The family business is less objective about profitability and other types of performance standards - more forgiving or tolerant of people and work management systems of their business. With a family business being orientated to consensus, harmony and friendship (we are all part of family here at XYZ Corporation), CHANGE is a difficult process. Attitudinal platitudes such as "why fix it if it ain't broke" prevail over difficulties perceived with change. This is evident not only in internal management systems of a family business but also to professional resources. Just as members of management team are impacted by "the Peter Principle" as business grows, that same growth problem impacts on professional resources such as banking, legal and accounting. Unfortunately these changes follow generational succession rather than more immediate needs of business. Approach as part of a process rather than as an event