Transitions — in just about every way, shape and form — are hard. In family businesses, a transition can be downright daunting. The outgoing generation has to find a way to prepare the next one for the responsibilities ahead, while the incoming generation has to step up with the right mix of confidence and humility.
Then there's the glue that holds it all together: family cohesion. No matter how talented or ambitious the next generation may be, a divided front spells trouble. When fissures form, and there aren't familial bonds to fall back on, the odds of making it are slim. Worse yet is the risk of apathy — when the next generation is just indifferent to the whole thing.
So yes, transitions are a heavy topic. But who says there isn't any room for fun? The next generation should understand the weight of their responsibilities, without question. But at the same time, these inflection points present a chance to incite a sense of excitement about what's to come. Approaching a transition with some levity can reduce burnout and start the process on a high note. Responsibility and enthusiasm aren't mutually exclusive; in fact, they go hand in hand.
Much of the third generation (3G) in our family has retired, and the fourth is starting to take the reins — both on our family council and within our family business, Crescent Electric Supply Company. It's a pivotal moment for the company and the family alike, and we want to make sure this transition happens smoothly and effectively.
There's a lot for the 4Gs to learn, but we didn't want to drown them in company documents and spreadsheets. So, we thought, how could we make it fun?
Our lightbulb moment
First, some context: the Schmid 3Gs had a head start when it came to cohesion. Most of them grew up in the greater Dubuque, Iowa, area, where Crescent is headquartered. They saw each other regularly, forming natural bonds that lasted into adulthood.
For the 4Gs, it's a different story. We're scattered across the country, with cousins on both coasts and everywhere in between. While we may see each other once a year or so during shareholder meetings, our time together tends to be fleeting (and split with 3Gs). Many of us consider each other acquaintances rather than close cousins.
What about family reunions? Don't get me wrong, those are great. But they're not designed for meaningful cousin time. The weekends fly by, and many of us prioritize spending time with our grandparents, aunts and uncles. It's a watered-down experience for 4G connection.
This disconnect posed a challenge. As the next generation of shareholders, family council members and potential board directors, we'll need to collaborate closely in the years ahead. And that collaboration relies on trust, understanding and, frankly, liking each other.
Then, we had an idea: a 4G summit. We'd held a smaller version over a decade ago, but at the time, the 4Gs were much younger. This time, the vision was bigger: a weekend retreat bringing together several dozen 4Gs from every branch of the family. We'd spend several days at a resort getting to know each other better, learning about Crescent and building the relationships that would carry us into the future.
Making the summit a reality
Coming up with the idea was the easy part — actually making it happen was another thing altogether.
Step one was securing buy-in from the family council. Their support was critical — both for logistical reasons and because they could help rally the rest of the family behind the idea. Thankfully, they didn't need much convincing. The council knew that tight-knit cousin relationships were part of the secret sauce that had kept Crescent family-owned for over a century. They also recognized that, with the 4Gs more spread out than ever, those bonds wouldn't form naturally. It would take deliberate effort to build the kind of cohesion the 3Gs enjoyed.
Once the council was on board, we turned our attention to Crescent's leadership. While the summit's main focus was cousin connection, we also wanted a business element — something engaging enough to spark interest but casual enough to avoid feeling like a corporate seminar. The idea was to reach everyone: those who might hesitate to speak up during shareholder meetings and those already involved in the family council or the business.
Pitching the concept to Crescent's CEO was the next step, and his enthusiasm was immediate. He immediately saw the value of the summit, recognizing that the 4Gs' time was fast approaching. He not only gave the green light but also offered to attend and bring other executives along. Together, we brainstormed content ideas that wouldn't dive too deeply into the weeds but would still give the 4Gs a clear sense of what Crescent is all about.
Our other (not so subtle) goal was to drum up interest in the family council. Many knew it existed but had little idea what it actually did or how to get involved. The summit was a chance to change that.
With council and executive approval secured, it was time to address the details and get this thing on the calendar.
Navigating calendars, locations and other logistics
Two big questions loomed: When would we hold the summit, and where? With several dozen calendars to coordinate, we knew we'd have to plan it more than a year in advance. Of course, weddings, graduations, job commitments, etc., would pop up in the meantime, but the best chance we had was to get the summit on the calendar before anything else could take its place.
Using SchmidSpace — our family's online hub — we created a poll to identify weekends that worked for the majority of 4Gs. After some back-and-forth, we landed on a summer date that seemed to fit.
Next came the location. Initially, we had some grandiose ideas — Cabo! Cancun! Montana! While these undoubtedly would have been a great time, practicality won out in the end. We needed somewhere central, affordable and easy to get to. Colorado checked all these boxes. With help from Crescent's team, we found a resort that offered the right mix of amenities and a compelling deal for a group of our size.
After another vote on SchmidSpace, we booked the resort for that weekend. The summit was a go!
Now came the fun part: planning the activities.
Crafting the perfect weekend
We wanted the primary focus of the weekend to be on 4Gs having fun and getting to know each other, but a company component would be important as well. Our CEO was excited to join, and he invited several other executives to tag along and give a short presentation — three hours, max. In terms of content, we wanted it to be engaging and informative — highlighting some cool projects the company was working on rather than diving into the minutiae of the electrical supply industry.
And what about the fun? It turned out there were a few concerts in the area that Saturday night, and we sent another poll asking the 4Gs which ones they preferred. With the majority choice in place, we booked a party bus to get us there and back, making for a signature night that none of us would soon forget. The rest of the weekend would be spent hanging out at the pool, using the resort's recreation facilities and enjoying each other's company.
Ingredients for an effective NextGen summit
The Schmid 4G Summit 2024 exceeded every expectation we had. More than 40 cousins — many of whom started the weekend as little more than acquaintances — walked away with stronger bonds, a shared sense of purpose and a clearer understanding of their roles in the family and the business.
Looking back, a few key lessons stand out:
- Empower NextGens to lead. If NextGens don't feel ownership over this event, it's unlikely get off the ground, let alone be well attended. Find a few NextGens (ideally from the family council) who are willing to take charge of the event. Once they're on board, let them run with it. Too much meddling from older generations can kill enthusiasm before it even starts.
- The event should be 80% fun, 20% business. A little business content goes a long way. Including a company-focused segment makes sense, but it should be only a small part of the agenda. The bulk of the weekend should feel like a retreat, not a board meeting.
- There are no dumb questions. If your family is like ours, the next generation has varying levels of business knowledge. A summit like this is particularly important for those who are less involved or hesitant to speak up during shareholder meetings. To keep these types engaged, make it clear from the start that there's no such thing as a dumb question.
- Have company executives attend. Having at least one company executive attend the event is invaluable. Typically, older family members monopolize these leaders' time during shareholder meetings, leaving younger generations with limited access. A summit offers a rare opportunity for NextGens to build trust and rapport directly with management.
- Host it in a location that's easy to get to. The easier it is to get to, the better your turnout will be. Ibiza would make for an epic weekend, but the travel and expense would make it a nonstarter.
Looking ahead
Family business transitions tend to be framed as a burden. While some tough conversations and a health amount of strategic planning are unavoidable in generational transitions, there's no rule against adding fun to the mix. NextGen summits are a great way to foster cousin connections and build excitement about the future.
Our 4G summit was a turning point. It reminded us that, while succession plans are important, family bonds are ultimately what keep a family business thriving through the inevitable ups and downs.
The truth is, no one has all the answers when it comes to generational transitions. But creating moments where cousins laugh and learn together? That's a step in the right direction.