Nwuke: Family business leadership is about stewardship

Director at the Lagos Business School Family Business, Okey Nwuke, emphasized the critical need for family businesses to adopt strategic succession plans and prepare the next generation for leadership roles. In a recent interview with CNBC Africa at the International Family Business Conference in Lagos, Nwuke highlighted the importance of striking a balance between innovation and tradition within family businesses. Nwuke stressed the significance of mindset shifts to address the high failure rate of family businesses in Nigeria. He pointed out that less than 30% of family businesses survive beyond the first generation, with only a meager 10% enduring into the third generation. These statistics underscore the urgent need for a new approach to ensure the longevity and success of family enterprises. One of the key challenges facing family businesses is the selection of successors. Nwuke noted that many businesses limit their pool of potential leaders to family members, often overlooking competent and interested individuals within the organization. This narrow focus on familial ties can impede the growth and sustainability of the business, as the most qualified candidates may be disregarded in favor of lineage. The concept of stewardship emerged as a central theme in Nwuke's discussion, emphasizing the responsibility of business owners to prioritize the needs of the enterprise over familial considerations. He highlighted the importance of grooming capable leaders who are not only passionate about the business but also possess the requisite skills to drive growth and innovation. According to Nwuke, succession planning should be guided by what the business demands to thrive and evolve, rather than traditional customs or cultural expectations. By broadening the criteria for selecting successors and focusing on competence and commitment, family businesses can position themselves for sustainable growth and resilience in a competitive market landscape. The conference served as a platform to challenge conventional practices and inspire a shift in mindset among family business owners. Nwuke underscored the need for ongoing dialogue and education to drive change and improve the success rate of family businesses in Nigeria. By reimagining the role of family members in business leadership and embracing a more holistic approach to succession planning, enterprises can overcome obstacles and build a legacy that endures for generations. In conclusion, Nwuke's insights shed light on the transformative power of strategic succession planning and the imperative of adapting to shifting dynamics in the business environment. Family businesses in Nigeria stand to benefit greatly from embracing innovation, fostering talent from within, and aligning their strategies with the evolving needs of the market. By embracing change and prioritizing the long-term sustainability of their enterprises, family business owners can chart a new course towards lasting success and prosperity.