Developing the Next Generation of Leaders

Family enterprises form the backbone of many economies, particularly in the Middle East, where they are deeply woven into the social, cultural, and economic fabric. Yet despite their scale and influence, intentionally developing the next generation of leadership remains one of the most overlooked aspects of family business stewardship.

At Egon Zehnder, we’ve had the privilege of advising family businesses across generations, helping them cultivate and equip leaders who can carry the business into the future while honoring the heritage that built it. In our experience, sustaining family leadership into the future is rarely a matter of chance; it requires nurturing two essential pillars: interest and preparedness.

Interest and preparedness form the foundation of every successful leadership development journey in a family enterprise. They are inseparable—one without the other creates imbalance. Sustained leadership impact requires both the desire to serve and the capability to succeed.

Many families assume interest will emerge naturally. Yet next- generation members often carry the silent weight of expectation without clarity on choice or purpose. In some cases, hesitation is mistaken for disinterest when it may actually be a call for greater independence, fear of being compared to a successful predecessor, or a desire to first prove themselves outside the family business. Cultivating interest means holding open, non- judgmental conversations, exploring personal ambitions, and connecting the family’s vision with each individual’s sense of purpose.

Even when interest is strong, many NextGen’s are underprepared to lead at scale. They may be well-educated, ambitious, and capable; but without hands-on business experience, meaningful decision-making exposure, and mentorship from seasoned leaders, readiness remains fragile.  Preparedness requires a deliberately designed development journey that builds skills, confidence, and resilience over time.

These two forces—interest and preparedness— are ongoing, interdependent currents that run through every stage of leadership development, shaping how legacy is respected, how new voices emerge, how growth paths are designed, and how the emotional journey unfolds.

One of the defining challenges NextGen leaders face is the tension between honoring legacy and developing an authentic leadership voice. This isn’t a choice; it’s a polarity to be managed.

When handled well, nurturing interest means giving the next generation a meaningful connection to the family legacy and understanding its values, origin stories, and the depth of what’s being entrusted to them. Strengthening preparedness, meanwhile, means giving them room to experiment, innovate, and lead in ways that reflect their own identity and leadership style.

We’ve seen the most successful leadership outcomes when families make space for both: legacy brings grounding, credibility, and shared values; voice brings energy, relevance, and innovation. True readiness comes when a leader can carry both with confidence.

An effective development journey doesn’t happen by accident; it must be intentionally designed to serve the needs of both the individual and the family business system.

The work of nurturing interest here involves creating opportunities that spark curiosity and engagement, from early involvement in key discussions to exposure to different parts of the business. Strengthening preparedness means providing gradually increasing responsibility, cross-functional experience, and clear opportunities for applied learning.

Crucially, the broader family and organizational environment must be prepared to support leadership growth. We often work with families to assess whether there is clarity around future leadership roles and decision-making authority; whether senior leaders are committed to mentorship and role modeling; if the family system welcomes new ideas without automatically defending “the way it’s always been done”; and whether mechanisms exist to measure growth and readiness over time.

An intentional growth path ensures that by the time a NextGen is invited to lead, both their interest and preparedness have been deliberately and fully cultivated.

The path from potential to readiness is not just professional, it’s deeply personal. For a NextGen, stepping into leadership means navigating identity, belonging, and pressure, often while being compared to an iconic founder or parent. For senior generations, empowering new leaders can stir questions of relevance, trust, and legacy.

Here, interest is sustained by emotional clarity, ensuring the decision to lead is a choice, not a burden. Preparedness is strengthened by resilience, self-awareness, and the ability to manage complexity without losing sight of personal values.

Ignoring this emotional terrain risks eroding both pillars, making technical training ineffective. We often say: leadership doesn’t emerge in a vacuum; it flourishes when both the individual and the system are emotionally and structurally ready for it.

Based on our work with family enterprises globally and across the Middle East, here are five imperatives for families committed to developing both interest and preparedness in their future leaders:

• Engage Early through Authentic Dialogue – Replace assumptions with real conversations about motivations, ambitions, and fears.
• Co-Create the Business Future – Involve NextGens in shaping strategy, creating a link between personal interest and the enterprise’s direction.
• Assess the Whole Person – Go beyond competence to explore purpose, identity, and leadership energy.
• Design a Personalized Development Journey – Combine internal roles, cross-functional learning, mentorship, and external exposure.
• Embrace Detours – Not every NextGen will walk a straight path; space for exploration often deepens both interest and preparedness.

Leadership development in family enterprises is not a single step—it’s an evolving journey that demands intention, patience, and courage. When families commit to building both the desire to lead and the capability to do so, they don’t just prepare a leader—they strengthen their legacy, re-energize the business, and ignite the vision for what comes next.

Editor’s Note: This article is published in collaboration with Capital Club Dubai.