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Traffic Light in Family Business context

“Yellow Light Family” – Proceed with Caution

“Yellow Light Family” – Proceed with Caution

Last week’s post (Happy to Be Wrong on FEX) talked about the great symposium I attended in Halifax earlier this month.

If you’re a regular reader (thanks!) you know that one of my best sources of blog material comes from these kinds of events.

I often do some sort of “Top 10” of things I picked up, but I’m going to devote this blog to one specific presentation I attended.

In coming weeks, I’ll likely dig in to a few other memorable sessions from the FEX conference.

 

Green, Yellow or Red Zone?

The symposium had a good mix of sessions; a couple for families only, others just for advisors, but most were open to all.

In this advisor-only session, Jim Grubman of Cambridge Family Enterprise Group presented “Green, Yellow or Red Zone Clients”.

He introduced the concept of the “Two-Axis Model” of wealth advising, with technical issues along the X-axis (horizontal), and personal and family dynamics on the Y-axis (vertical).

In each case, the model ranges from low complexity to high, from left to right and from bottom to top.

The colour-scheme was reserved for the family dynamics axis; green at the bottom, yellow in the middle, and red at the top end.

 

Technical Bread and Butter

Grubman mentioned that as you go from left to right on the “technical axis”, more complexity is usually seen as a positive for advisors.

A family with complex technical needs is often a plus, in that it allows you to showcase your abilities to solve their issues, and to charge accordingly.

The more people, entities, trusts, and jurisdictions a family has to deal with, the more the advisors will relish the task. At least the best advisors do.

 

The Family Dynamics Axis

The vertical axis, on the other hand, where family complexities increase, can be a very different story.

This is where the “traffic light” comes into play.

The low complexity families, with little of no conflict, anxiety, addictions, etc. are where most advisors prefer things to be.

Green is good, because there’s no family stuff to trip you up.

As you begin to see any of those issues, you leave the safety of the “green zone” and get into the yellow territory. At this point many who advise on technical issues (legal, tax, trusts, accounting, cross-border, etc.) quickly feel like they’re out of their depth.

Sometimes it doesn’t take much to raise the proverbial red flag, and get the advisors to scratch their heads wondering if they will be able to resolve the family issues.

 

Break It Down

Here’s where the real value of the presentation came for me. Rather than simply looking at the family dynamics question globally, Grubman breaks it down into several components.

In many cases, one thing sets off alarm bells, but others are hardly any concern.

For example, the sensitive issue could be the family’s level of conflict, their communication style, addictions, perceived fairness, or lack of governance systems.

When you can put your finger on it with greater detail, you’re much better placed to deal with it.

It can also help to look at “state versus trait” variables. There could be a situational factor at play, which may just be temporary. (Traits are fixed, while states are transitory)

 

Isolate the Issues

When the advisor team can share their views using this type of breakdown, they can pinpoint the issue more easily.

A family that looked red, or “very yellow” can look much less daunting once you see that there is really one key issue that is flashing, and that the others are pretty green.

 

Coordination and Collaboration

Now I’m gonna switch from what Jim Grubman was saying to Steve Legler’s take.

No single advisor will be able to handle a family with any complexity above green, on either axis.

Technical professionals work together to solve the family’s asset-related issues. On the family dynamics side of things, the same should also be true.

Families will benefit from advisors who can coordinate their activities at a minimum, and hopefully even collaborate.

 

Inter-Disciplinary Fluency Helps

FEX’s FEA Program helps advisors develop the inter-disciplinary fluency they need to properly serve families.

Knowing what families need, and how the pieces all fit together, is key. And so is being able to work together.

Tools like Grubman’s help us all do a better job for families.

Father’s Day Introspection 2017

That Time of Year

Every year when Father’s Day rolls around, I get mixed emotions. Being a father is truly the greatest joy of my life, and this weekend will be my 18th as a father, but also my 9th without my father.

When I work with members of a family, I like to help them see things from each other’s points of view, and asking them to project forward or backward many years comes naturally to me, stimulating conversation through curiosity.

Asking a father to think back to when he was at his son’s current age will naturally shift his viewpoint.

Likewise, having a son project to when he will be his Dad’s age and imagine what that could be like, forces him to adopt a different mindset.

 

My Own Journey

For the first few decades of my life, I only saw Father’s Day from one perspective.

When our son was born, I developed a new appreciation for the third Sunday in June, as I was now a father too. Having my father still around then, I got to experience the “dual roles” of son and father.

I didn’t get to enjoy too many of those, unfortunately, as my father was struck down too soon by cancer, so now I am back to only one way of experiencing this special day.

 

Father–Son Experiences

This past week I was in Halifax for the Family Enterprise Exchange’s (FEX) Symposium, where there were plenty of father-son teams and stories.

(There were of course mothers and daughters too, but this is my Father’s Day blog and I’m a guy, so please excuse the gender slant this week.)

Whether it was a father and son on the stage, recounting the evolution of their relationship, or members of a family at my table during one of the sessions, I couldn’t help comparing what I was seeing and hearing to my own experiences.

It felt like most of the relationships I witnessed were healthier and more open than the one I had with my father, and much closer to what I feel like I’m living with my son (and daughter).

 

Objectivity Problem?

I can’t be sure of my biases here, but I think I’m being pretty objective.

Were these isolated examples of great family relationships?

Was my view of them skewed by their efforts to show “good behaviour” in public?

Was it a sign of the times that younger generations have got the father-son relationship figured out better?

I can’t be sure, but I do know that the fact that my Dad and I were in a family business together certainly DID have an effect on our relationship.

 

“We’re Not Gonna Do That”

I shared a fundamental story of ours many times during the FEX Symposium, one that I wish had turned out differently.

In the mid 1980’s my Dad had joined CAFÉ (Canadian Association of Family Enterprise, forerunner of FEX) while I was completing my Bachelor of Commerce studies at McGill.

Those studies were part of what I understood to be my “duty” as his only son: to fulfill my “destiny” as his successor.

One day he told me that many of the advisors who had spoken at CAFÉ events were very much against the idea of hiring your kids right out of school and straight into the family business.

I recall looking at him with a hopeful twinkle in my eye (which he clearly didn’t read the way I had hoped), waiting for the next line.

At that point he put his hand on my shoulder and “reassured” me with, “But we’re not gonna do that!”

Once again, he decided for we.

 

Wait, Why Not?

My hope is that modern day sons would have the courage to say, “Wait, why not?”

I really wish that I had, and if my son were faced with such a situation, I hope he would too. But I don’t plan on ever putting him in that kind of situation.

And for any other father-son team experiencing this question, please resist the temptation to taking this short cut to working in the family business.

 

Worth the Wait

If it’s right, it’ll be even more right, later.

Let your kids become their own selves first, outside their parents’ shadows.

It is worth it for them, and it will be for the business too.

Father and Daughter playing

Is Your Family “In Line”, or Aligned?

The subject of family alignment is near and dear to my heart, and it has been for a few years now, probably since I first heard it.

Family alignment can mean different things to different people, but in the arenas of family business, family legacy and family wealth, it seems to be more and more common, and recognized as increasingly important.

The first time I tackled this subject, last year, I didn’t just write a blog on it, I created an entire “white paper”. However, since I kind of despise that term, I called mine a “Quick Start Guide”. Link here: Family Alignment – What it IS, Why you NEED it, How to Build It.

Part of what prompted this blog now is my newfound interest in the subject of family governance.  Well, it’s not really a newfound interest in that subject, it’s more of a newfound appreciation for the word governance, especially as it applies to families.

Back in January, my blog, “Family Governance, Aaaah!” recounted how I had come to terms with my revulsion of the “G-word”, thanks to repeated exposure to it from more and more respected places.

Collaboration and Leadership

Around the same time, I read the book “The Collaborative Leader”, and another light went on.  In that book, authors McDermott and Hall talk about two words that seem to have a symbiotic relationship (my words, not theirs).

They explained that the words “collaborative” and “leader” are actually very difficult to separate, because one is almost always used to describe the other. There is almost an implied nature of each within the other, so to speak. (Again, my clumsy words, not theirs)

To collaborate requires leadership, and to lead requires collaboration.

Hmmm, interesting, I thought to myself.  I wonder if I can think of other pairs of words like that.

 

Alignment and Governance

So naturally, my thoughts lead me to alignment and governance, admittedly, two much less common words.

My thinking goes like this.  If you want to align your family, it needs to be governable, and if you want to govern your family, it needs to be aligned.

Now if you really want to pick holes in my arguments you certainly can, and maybe not just small holes, but bear with me here.  And let’s agree to take a 2017 perspective, not one from 1987 or 1957.

Just as the definitions of collaboration and leadership have evolved, so have those for alignment and governance.

 

Getting Everyone in Line

Decades ago, having everyone in your family “in line” had a different meaning, likely much more autocratic and “top down”. I think we can all agree that that horse has left the barn.

In the same way that leaders today need to be collaborative and collaboration needs leadership, today’s governance structures exist best in situations where there is alignment.

It seems like this would be true in any situation, not just in the areas of family governance and family alignment.

Where do you Start?

The good news with these pairs of words is that in order to get moving, you can start working on whichever one resonates more.  If you want to help someone with their ability to lead, but they don’t really see themselves as leaders, you can work on their collaboration.  And vice versa.

If you have an aversion to family governance, you can work on family alignment, and for those who think family alignment is too “touchy feely”, maybe you can convince them to work on family governance.

Are You Feeling Lucky?

If you’re lucky, your family (or the families that you work with) will automatically have leaders who love to collaborate and people who “get” governance and are easily aligned.

Most people aren’t that lucky. Most people need to work at these things.

My favourite expression in this regard is “Things don’t just happen by themselves”.

Some of the current buzzwords that I hear and like on this subject are the following:

  •  Deliberate
  •  Intentional
  •  Purposeful

Please recall that your legacy comes from both people and assets, and your wealth and legacy won’t preserve themselves.

Bottom Line: You can work on better alignment through governance, or better governance through alignment, but you need to work on them. Intentionally.

Personalizing your Family Business meetings

5 Things you Need to Know: Professionalizing your Family Business

Most family businesses start small and are run rather informally, usually with one or two people calling the shots. As the business grows, more people are brought in, and things can go along for years without much in the way of any formal procedures or written rules.

When one person can no longer stay on top of everything, their ability to delegate will largely determine how much the business can grow.

As the next generation joins the business, a certain level of informality may be part of the culture as well. That isn’t necessarily a bad thing, but behaving at the office as you do around the dinner table can have its drawbacks.

Many people recommend “professionalizing” your family business, and with good reason. But what exactly does that mean, and how do you do it?

I’m glad you asked…

1. Education

An obvious place to begin is with the education level of the next generation of family members entering the business.

If your children have the ability to go to college or university and get a degree, that’s a plus.

If they can get an advanced degree, that’s better.

If they can do that AND go and get a few years of work experience working for an unrelated business, that’s best.

If you are inclined to hire your kids right out of high school, I urge you to rethink that plan, as their future and that of the company will likely be limited by that choice.

If it’s “too late for that” in your family, there are plenty of education opportunities that last anywhere from a few days to a few months that are probably worth looking into.

It is never too late to learn new things and to upgrade one’s skills and abilities.

2. Hiring Non-Family Employees

The quickest way to professionalize any business is to hire people who are professional in the way they operate, hopefully also bringing along some work experience.

Aim to bring in outsiders who are MORE professional than the people you currently employ, treat them professionally, listen to their ideas, and learn from them.

You can only go so far without great non-family people on your team.

3. Outside Professionals

Every business needs and has outside professionals that they deal with, like accountants and lawyers. They often began with friends or whomever they could afford when starting out.

As the business grows, it is sometimes necessary to move up the ranks and switch to professionals who are at the level you require.

It is quite possible that your business has outgrown your professional advisors, and an upgrade will be needed. It isn’t always easy to cut these ties, but can be necessary.

4. The HR Department

During the growth of any business, the need to begin to treat Human Resources as its own department becomes key. The sooner you acknowledge this, the better.

Your business can only grow as quickly and as far as the ability of your people to grow along with it.

A real HR department will think twice (hopefully) before agreeing to blindly hire a family member and put them into a role for which they are ill suited and unqualified.

This issue has tripped up more family businesses than you can imagine, as mistakes like this cost not only the department where the person works, but can get everyone shaking their heads about what is important to the business.

The biggest part of this comes down to attitude. Have you realized how important humans are to your company, as a resource?

Finding, onboarding, and keeping great people is a must for just about every business. And so is having the right people filling all key roles.

5.   Board of Advisors

Last but certainly not least is the company’s board. I know that even fathoming a true Board of Directors is a complete non-starter for most small family businesses.

So why not start small and informally, with a board of advisors?

The outside perspective alone is worth it, even if it is only to help you look at your own family members more objectively.

Bringing in independent advisors (preferably NOT your current lawyer and accountant) can be the single biggest step to professionalizing your family business. Just ask anyone who has done it.

Liquidity Events in Family Business

Liquidity Events in a FamBiz: Pros and Cons

Part 1 of 2 – The Pros

 

The expression “liquidity event” is not necessarily well understood among the general population. Let’s take a look at it from the Family Business point of view.

Essentially, a liquidity event takes place when the owners of a business, in this case a family, sell a substantial portion of their business (either shares OR assets) to an outside party, for cash or another form of asset that can more readily be turned into cash quickly.

Read more

Lessons from a drowned phone

Lessons from a Drowned Phone

Happy New Year?

The first week of a New Year seems destined to bring up a challenge for me. Last January I was involved in a car accident that resulted in a concussion, and 2017 started with me accidentally drowning my phone.

I must admit that given a choice for 2018, I would sign up for stupidly putting my phone in the washing machine over innocently getting rear-ended at a red light.

Even though I have nobody to blame but myself for the phone fiasco, I must admit that this year is off to a better start than last. And of course the drowning of my phone has given me a juicy blog subject to boot.

 

The Incident

Last Friday when I finally found my misplaced phone in the “last place I looked”, i.e. the pocket of my jeans, in the washing machine, well into its wash cycle, I was relieved that at least I had solved the mystery of “where the heck is it?”

The thrill of finding it was quickly extinguished of course, as I had already concluded that it was now merely a paperweight.

 

Now What? 

Saturday morning I went to my phone service provider with it, holding a glimmer of hope that it might still be useful. No such luck.

I purchased a new phone, and then came the time to transfer what I had in my old phone. There is a great app you can use to transfer stuff (photos, contacts, apps, etc.) from an old phone to a new one. But it doesn’t work when the old one is dead.

 

Parallels

My work is all about helping families define and preserve their legacy, which includes very important steps that I explain to client families, which they cannot skip if they want to keep the odds of success on their side.

My old phone had lots of important stuff in it that I wanted to continue to benefit from. But it was now dead, and I had not done what was necessary to preserve what was in it by backing up everything.

Now, recreating what I had, became a much bigger challenge. In fact, some stuff, like photos, was gone for good.

Most of those photos weren’t critical, but they did have some value, which was now lost. Likewise, much of what the senior generation members have in their heads is not truly critical for the survival of the family, but it can often rise to a level above simply “nice to have”.

In case my analogy has been lost on you, allow me to spell it out more clearly. If you wait until after people have died to try to have a valuable relationship with them, it is MUCH harder to do.

 

Contacts

What about contacts? The way things turned out for me, thanks to technical ineptitude and the lack of foresight on my part, when my contacts updated on my phone, I got hundreds of names and email addresses from everyone I had ever emailed through my Outlook account, a majority of which are useless now.

The cell phone numbers that I actually wanted and needed were nowhere to be found.

I now have to delete a whole bunch of useless stuff, and I need to email a bunch of people and ask them for their cell phone numbers again.

So I got a lot of stuff I don’t want, and the stuff I want, I need to actually work to get, even though I already had it before.

This is kind of like having to go through all of the files and documents of a deceased relative, while never having had the benefit of the personal introductions to people who were important to the family.

 

Lesson Summary

  1. Whatever happens, it could be worse. Phone issues are preferable to concussions
  1. To have a back up, you actually have to DO a back up.
  1. Sometimes you don’t know what you’ve got ‘til it’s gone.

Please realize what you have and figure out how to preserve it. And I’m not just talking about your phone.  There are so many things that the NextGen and the NowGen need to work at transfering.

Better get started today.

Family Business Decision Making

So Maybe it IS the Highway

Highway traffic in sunset, travel concept background

“It’s MY way, or the Highway”

That expression is familiar to most people, and if you have ever been around an old-fashioned founder of a family business, it may hit especially close to home.

It’s interesting to note that as recently as a few decades ago, the default reaction to someone making this exclamation has probably changed.

What I mean by that is that in the middle of the last century, a family business leader who demanded that everything be done their way would more often than not succeed in getting everyone to do as they pleased.

In the early decades of this century, however, I would venture to guess that more often than not, they will have difficulty in getting everyone to buy into the “MY way”. So much so that fewer people will even dare utter that phrase.

So what has changed? Well there are a whole bunch of societal changes that have been occurring over the past few decades and it is important to be aware of how they are affecting business families.

 

Two Kinds of Life Expectancy

People are living longer, and staying productive and healthy for many more years than in the past, and the typical business founder has some difficulty letting go. Decades ago, their offspring could join the family business with the expectation that they would get to a point where they would inherit the business while still young enough to get to do things their own way. Not so much today.

The other kind of life expectancy is a term that I coined here myself, just for this blog. When invited to join the family business, more and more Next Generation members are thinking hard about what they expect out of their life.

 

Education = Options

Many families who have successful businesses will encourage their children to get a great education, but while they are getting educated, they are also getting exposed to the world of opportunities that such an education affords them.

What often happens is that a number of great options become hard to resist. If the choice is to return to the family fold and fall in line with a parent’s, “My Way”, or to go out and forge your own path, well, at least one of those paths is usually more tempting.

It can be understandably disappointing for parents to discover that a business that they built “for the family” does not seem to have any interested “takers”.

Families with means encourage independence in their offspring, and then lament the fact that they are no longer able to interest their children in being involved and taking over.

 

No Magic Bullet

At the risk of disappointing readers expecting me to provide a magic bullet solution, “sorry”. But I will offer some words of advice just the same.

It is true that there are more and more good “highways” out there, and if your “former chidren” have found a career for which they have a passion, then that’s probably better than having them come work for you and hate Mondays.

Also, if you have built a sustainable company and do not have any heirs who want to work there, all is not lost. Have you thought about having the family continue to own the business, even after you retire, having it run by professional, non-related management?

If you want to be involved with your children and they have an entrepreneurial spirit that they inherited from their parents but they are not exactly enthralled by your business, have you thought about helping them get started in a business venture in a field that they are passionalte about?

These last two ideas, long term family ownership of the business and starting a new business with and for your kids, are just a couple of ways to avoid the old question of My Way OR the highway.

 

The Family > The Business

If you have an open mind, and some creativity, you can look for ways to do things “Our Way”, and try a few different highways.

When thinking about the next generation, I always encourage people to be a great parent first, and think about the business second. I hope you see the wisdom of that approach.

How the family Governs the family Business

Putting the “Own” in Ownership

I am a big fan of the three-circle model and I have been since I first learned of its existence a few years ago.

As the story goes, it was actually derived from the two-circle model that preceded it, which was already groundbreaking in its own way because it was an attempt to separate the “family” and the “business” circles, while acknowledging their overlap.

When Renato Tagiuri and John Davis added “ownership” as the third circle, they had created a model that has stood the test of time for three decades now.

Ownership remains the circle that is hardest to grasp for many people, despite the fact that it sounds pretty straightforward on the surface.

People who do not have any relationship to a family business probably have a better grasp on the meaning of the word ownership, because anything that they own is likely pretty clear to them.

This week I attended an event where a woman from the third generation of a business family related that when she became an owner of her family’s business, she was not even informed until a year after the fact.

This reminded me of an event that I lived with my father many years ago. It was back in the 1980’s when CAFÉ was going strong in Montreal, and we attended a workshop together. In preparation, the organisers sent out a questionnaire to all attendees, asking for the percentage ownership in their family business.

My Dad had left this task to me, and I noted that he owned 67% of the company, and I owned 11%. He had set things up with two holdco’s, his, with 2/3 ownership, and his 3 children’s, with 1/3.

During the event, he saw the questionnaire that I had filled out for the first time, and he asked me point blank “What’s this?” I told him essentially what I just noted in the previous paragraph. “Oh, yeah, I guess you are right” was his reply.

Clearly he still considered himself the 100% owner, and I guess my sisters and I did too!

So ownership can be a little nebulous from time to time, and I know of at least one family business advisor who says that he only works with clients on ownership governance matters and avoids working with business founders, who so often have difficulty understanding the three circles.

A couple of weeks ago at the Family Business Summit in Halifax, I participated in an interactive exercise led by Doug Bolger of Learn2, who had the entire room working together and discussing succession matters.

At one point I had another “A-Ha moment”, and I always try to share those in this blog. We were discussing “ownership”, and then someone mentioned members of a younger generation wanting to do their “own” thing.

I had never realized that the word “own”, as in “my own” was part of the word “ownership”. I raised my hand and shared this realization with the group, and based on the reaction, I was not alone.

There is a new initiative being launched by the Business Family Foundation (BFF) this fall that recognizes that members of the rising generation in families seem to be more interested in doing their “own” thing more and more frequently these days.

They have created the “Initiative Intrapreneuriale” which will begin in Montreal in September, in French. As one of their “ambassadors” on this project, I would like to share why I think the idea behind this program is one “whose time has come”.

Intrapreneurship is not a new idea, many companies have benefitted from it, often without even calling it by this name.

What the BFF’s program is designed to do is to help spark business families into intrapreneurship as a way to get younger family members to join their family’s business AND do their own thing.

Enterprising families recognize that businesses have life cycles, and know about the importance of renewal. So why not encourage younger members to come up with their own business, and have it “grow up” within the existing family firm?

Sounds like a win-win proposition to me.

 

 

My CAFÉ Symposium 2016 Top 10 List

 

Returning from Calgary after attending my third annual CAFÉ Symposium in a row, I thought I would try something a bit different in this blog, and with a hat tip to David Letterman, here is my Top 10 List of memories.

Number 10Tony Dilawri’s Dad stories

A second generation family business leader who opened the Symposium with his family story.

Favourite parts: His Dad announcing “We’re all moving to Regina”, as well as his Dad telling him he was not working hard enough because he did not work on weekends, and his reply that he had multiplied the size of the company many times over while working less hours.

Number 9Dinner conversation

At the Family Enterprise of the Year Award dinner, I was seated next to a retired criminal lawyer, Larry Hursh (accompanied by his wife Carolyn) and I had the chance to exchange views with him on the Oland trial that I had attended in November.

Number 8Another Molson please

After the FEYA dinner, author Gordon Pitts interviewed Andrew Molson, who shed light on how their family has remained strong over the generations, including 3 separate times that they have owned my favourite hockey team.

Number 7Old Friends, New Friends

Like any annual conference you attend, it just gets better every year, because you know more people and more people know you. It was great to see old friends and meet other new ones, and hopefully we will all see each other again in Halifax in 2017.

Number 6Paint by Numbers

An old friend was Sarah Tkatchuk of KPMG, and she and some colleagues lead a workshop called “Painting a clear picture of long term family success”, which was surprising to me because “painting” and “accountants” are not necessarily two words you think of together. Of course, it was essentially a “paint-by-numbers” exercise.

Number 5 You are getting sleepy

Wayne Lee’s hypnosis show was hilarious and very memorable for the performances by a couple of participants, old friend Trudy Pelletier and new friend Margaret-Jean Mannix. I will just leave it at that.

Number 4Brett Wilson’s unique ways

The former Dragon shared a few of his stories and philosophies to end the conference.

Favourite parts: He admits attending the University of Saskatchewan because he did not realize that (in theory at least) he had other choices of schools. Also, the methods he is using to get his children to be financially responsible, which sound like they are working, even if they are clearly not for everyone.

Number 3 Prepare those heirs!

The mother-daughter team of Kathy Reich and Nicky Scott shared lots of great ideas during their workshop. It is nice to see that more people are getting into what they called “Preparing Heirs for Assets (not the other way around)”.

Having read “Preparing Heirs” myself, and also having the pleasure of speaking with author Roy Wilson on a recent conference call, I am glad to help spread this message to more people.

Number 2A new take on Core Values

Keynote speaker John DeHart spoke passionately about how he co-founded Nurse Next Door and how defining their corporate values was (and still is) their key to success.

It only hit me after he was finished that his real innovation was getting away from the staid old “one word” values like integrity and replaced them with sayings, taglines or catchphrases like “sunny side up”, which was both a personal value of his and a value of his company.

Number 1The Bermingham Story

Patrick Bermingham recounted the tale of his 119-year old family business, and what a tale it was.

Favourite parts: How he purchased the company from his father, they shook hands, and Dad never said another word, he was now fully in charge. How he went about raising cash at a time where he had no other choice, and how he offered shares to key employees to ensure the company’s growth would be sustainable.

Many inspirational stories were heard and enjoyed by the hundreds of attendees, and I was glad to be one of them again.

I hope to see you all in Halifax next year!

 

 

Steve Legler “gets” business families.

He understands the issues that families face, as well as how each family member sees things from their own viewpoint.

He specializes in helping business families navigate the difficult areas where the family and the business overlap, by listening to each person’s concerns and ideas. He then helps the family work together to bridge gaps by building common goals, based on their shared values and vision.

His background in family business, his experience running his own family office, along with his education and training in coaching, facilitation, and mediation, make him uniquely suited to the role of advising business families and families of wealth.

He is the author of Shift your Family Business (2014), he received his MBA from the Richard Ivey School of Business (UWO, 1991), is a CFA Charterholder (CFA Institute, 2002), a Family Enterprise Advisor (IFEA 2014), and has received the ACFBA and CFWA accreditations (Family Firm Institute 2014-2015).

He prides himself on his ability to help families create the harmony they need to support the legacy they want. To learn how, start by signing up for his monthly newsletter and weekly blogs here.

 

Vermont, a Global Hub? What the FECC?

Burlington Vermont is not a place most people think about when globalization is the subject. But once a year, that all changes, and people involved in Family Business congregate there in January for a one-of-a-kind experience.

The Global Family Enterprise Case Competition (FECC) just wrapped up this weekend, and the fourth annual edition was better than ever. The folks at the Grossman School of Business at the University of Vermont can truly call their event “Global”.

I had the privilege of serving on the judging committee at this competition for the third year in a row, and as always, it was an enriching experience. So how global is it?

Well on Thursday I served on a panel with another Montrealer, but he happens to hail from Mexico (as did a couple of the Undergraduate teams participating). That same panel featured a woman from Switzerland, who was born in Czechoslovakia (which is now 2 countries!)

There were 24 student teams competing, with 16 in the Undergraduate section and 8 in the Graduate portion, and these teams hailed from 10 different countries, but if that weren’t enough, the students themselves came from even more diverse geographic and cultural backgrounds.

I don’t have vital stats for all of the participants, but from just the eight teams that I saw, here are a few examples:

A team from Sweden featured at least 2 competitors who were German, which they clearly used to their advantage on the case of the Juchheim company, which, suprisingly (or not) was about a Japanese family enterprise.

Another team, from Texas, featured students with both Latin American and Asian roots, and a team from Spain featured one presenter with a Middle Eastern background.

I could go on, but I think that I have already given you a flavour of what the event is like, and I have probably already used some terms that will have offended some people who are more politically correct than me.

So what is it that makes Family Enterprise such a great field for a global competition? That’s an easy one.

The languages and the culture change from country to country, but the prevalence of family business is pretty well widespread around the world. And not only that, what parents want and hope for when they go into business with their family members is not very different from one location to another.

Furthermore, the issues that come up in family enterprise situations that you can find in one country will invariably show up in just about every other country too.

The good news here is that you can learn a lot about the big issues and how you may want to handle them simply by studying what has gone on elsewhere. You know, learn from other people’s mistakes.

The field of family business as a discipline, to be studied, researched, and taught in schools is still relatively new. The related field of family business advising is also still considered pretty new.

What this means is that the families who are eager to get involved with examining their own situations by opening their eyes and themselves up to what is going on with other families, are still part of what one would term the “early adopters”.

Family Business is not yet seen as “mainstream”, and is not taught as a separate discipline in very many business schools yet.

Likewise, many people like me who call ourselves Family Business Advisors are still looked at as a little bit odd (OK, I confess, you got me there) and we are sometimes met with questions like, “Is that a thing?” when we describe ourselves as such.

Things are changing, slowly but surely, in the right direction. If you have any interest in the field of Family Enterprise education, I invite you to check out the FECC at UVM and get involved in next year’s 5th annual edition. I know that I am already planning a return trip.