Next generation
The next generation, often shortened to NextGen, refers to the younger members of a business-owning family who may become future owners, leaders or stewards of the family business or wealth.
“Next generation” is used widely by family businesses, private banks and family offices to describe the younger members of an owning family. The group usually includes children and grandchildren from their teens into their forties, whether or not they work in the business.
The phrase covers several possible futures. Some members of the next generation will lead the company. Some will be owners without working in it. Some will sit on a family council or a foundation board. Some will choose to be involved very little.
Many families run next generation activities: education days at a family assembly, internships, rotations through the business and programs run by banks or business schools. A family office often coordinates this. Bank next generation programs and what a family office does for the next generation describe what is commonly on offer.
Next generation or successor?
The two are often confused. The next generation is a group. The successor is the specific person, or people, being prepared to take over a leadership role. Preparing the whole next generation to be informed, responsible owners is a different task from preparing one person to lead the board and the senior team. Both matter, and most general next generation programs are designed for the first.
Why it matters
How a family brings in the next generation shapes who will want to join the business and how fairly the family thinks it was done. A clear family employment policy helps. What is next generation leadership development? looks at the difference between educating the next generation and preparing a leader.