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Coach in soccer field

No, Dad, Coaching is NOT “Helping Losers”

No, Dad, Coaching is NOT “Helping Losers”

I’ve just begun a series of coaching courses that have been “right up my alley”, and the process has also triggered some memories and anecdotes about the coaching profession that I think are worth sharing here.

When I first learned about ORSC (Organisation and Relationship System Coaching) I was instantly intrigued and thought it might be the perfect place to hone some of my facilitation skills.

Working with families means that there are lots of “relationship systems” already in place, and there is both some art and some science behind knowing how best to work with them.

 

Flashback No. 1

So let’s start with my first flashback, which is the source of the title of this post. It touches on some of the misconceptions and general misunderstanding of what coaching is, and conversely, what it isn’t.

It was over a decade ago, and someone who respected my father as a businessman made the unfortunate mistake of asking for his opinion on a matter he knew little about.

My Dad deserved the respect for his business acumen, but his penchant for offering strong opinions on matters he knew very little about was also part of the deal.

A family member in his forties was thinking about coaching as a career change. This person could have / would have made a great coach, but never pursued it, thanks in part to being dissuaded by my Dad.

I learned of the discussion later from my Dad, who off-handedly mentioned that so-and-so was considering going into the business of “helping losers”.

 

A New “Profession” 

The coaching “profession” is still relatively new and misunderstood, although it feels to me that things are getting better slowly with time.

Something interesting I have noted in my work in the area of Bowen Family Systems Theory is that Dr. Murray Bowen was calling himself a “coach” since at least the 1960’s, which likely pre-dates much of the current coaching “industry”.

Unfortunately, many family leaders from the senior generation have a hard time grasping the idea of hiring a “coach”

I know of at least one family who missed out on hiring someone that I know would’ve helped them greatly, but the patriarch was not convinced, in large part because the person presented herself as a “coach”, and he couldn’t get past the fact that his family wasn’t a “hockey team”.

 

What should we call ourselves?

I touched on this last week in Providing Counsel to the Family Council, where I mentioned that I don’t like to call myself a consultant. So I use the term “Advisor”, but then I really don’t like to give “advice” per se.

One of the best words to describe the kind of assistance I provide is “guidance”, but calling myself a “guide” just feels a little too nebulous.

 

Tour Guide or Wilderness Guide

Let me play with the “guide” theme a bit here. I really don’t think the city tour guide at the front of the bus is a good analogy. However, a safari guide or wilderness guide might be a better fit.

When you go to a place where things are unfamiliar and potentially dangerous, you really shouldn’t go it alone.

I don’t think too many people just book a flight to Kenya, stop at the Hertz counter and drive into the jungle to find the lions.

 

A Safe Expedition

Working on your family alignment and governance also requires making sure that everyone feels safe and that nobody is ever in danger. You want to make sure that you have at least as many members in your party at the end of the trip as when you started.

In the cases where some members are no longer part of the journey, you want it to be because they chose to come home early or to go on a journey with a different route.

 

How about a FLAG?

Now I’ve added even more elements, i.e. alignment and governance, that people who do this kind of work like to talk about, which can also add to the variety of titles.

So a Family Legacy Alignment Guide could be shortened to FLAG. I’m not sure that one would resonate though.

I think I’ll stick with Family Legacy Advisor for now, while continuing the coaching courses, which are actually more about “facilitation”.

 

Moral of the story: All families are different, and so are the people they hire.

Also please see: Going Far? Go Together!

Family sitting around a table

Providing Counsel to the Family Council

Providing Counsel to the Family Council

I enjoy wordplay more than most, and this week I stumbled across something I probably should have addressed in this space already, but seemingly haven’t.

So by exploring the words “Counsel” and “Council”, which are homonyms, I get to touch on a couple areas that are important to me and to my practice.

 

Family Counsellor

My current business card identifies me as a “Family Legacy Advisor”, but I’m never sure what I should actually call myself.

I cover a few bases by adding “sub-titles”, (Facilitator, Coach, Mediator), but even then it never feels 100% “correct”.

I prefer “advisor” to “consultant”, but when I’m crossing the border I always say I’m a consultant, because it sounds more straightforward.

Somehow, “family counsellor” feels like an appropriate title for a role I really enjoy playing, although that could also be easily misconstrued.

 

Business Family versus Family Business

Regular readers know that I often note the difference between a “family business” and a “business family”, and I have a clear preference for which entity I prefer to serve.

I like to work in the “family” circle, serving the business family first and foremost, because the family side is usually “under-served” by outside professionals.

The business circle has plenty of outside help from lawyers and accountants, not to mention various other professional consultants.

“Business counsellor” would sound kind of funny, but “family counsellor” has an interesting ring to it.

 

Family Governance = Family Council

I’ve written quite a bit about family governance, and family meetings, and one of the most basic terms in this area is “Family Council”, but until now I haven’t used that term.

Governance can get a bad rap, and too often it scares people because it sounds way more formal than it needs to be in real life.

This week I attended an event for business families held at a local University family business center, where the topic was “family councils”. Actually, since it was in French, it was “Conseil de Famille”.

There were representatives of three local business families on a panel, and the moderator asked them questions about their family councils.

 

De-Mystifying Governance

I truly appreciated the family members who spoke in front of a group of strangers about personal subjects, and I applaud the organisers for trying to de-mystify the idea of having a family council as a basic element of family governance.

However, based on some of the questions during the Q & A, I think that plenty of attendees still didn’t “get it”.

Despite the fact that the panelists were very forthcoming, explaining the nuts and bolts of how often they meet, who gets invited, what they talk about, who sets the agenda and who runs the meetings, it felt like many were still mystified by the idea.

I think it’s likely because they couldn’t picture how it might work in their own family, and I wonder if the name “Family Council” is too formal, and scares people as much as the term governance does.

 

Evolutionary, Not Revolutionary

It shouldn’t be so formal though, especially at the outset. Just have a family meeting, and let it evolve from there.

The only “revolutionary” step is bringing in an outsider to facilitate the meetings. Everything else needs to simply be “evolutionary”.

The most important part is actually starting to set up regular meetings to talk about how the family is affected by the business.

 

A Seat at the Table

Yes, even those family members who don’t work in the business, or don’t own any of the business, do have questions and concerns about the business, because they are certainly affected by it.

Providing them a seat at the table, so that they can be heard, and so that they can ask questions, is simple and basic.

If you organize such a forum before you need to do so, it will all go so much more easily than if you wait until they demand such meetings.

 

Counseling the Family Council

Meeting even just once a year is fine to get you started. But please start before you feel like you need to.

Start slowly, start small, and evolve from there. Learn as you go, and look for progress, not for perfection.

Eventually, you’ll find a family counselor to come in and facilitate those meetings, and then you can officially call it a “Family Council”.

conflict between family member in an office enviroment

Embracing Conflict in Family Business

Embracing Conflict in Family Business

Last week I mentioned the Family Firm Institute’s annual conference that I attended in Chicago in October, and how I came home with many weeks’ worth of blog material.

So today I’ll take one of the sessions that I enjoyed and build this post around it.

Here’s the title of the presentation in question:

 

“Can Embracing Conflict Spur Positive Change?”

Joe Astrachan and Carrie Hall were the presenters, and they based much of their discussion on a recent survey of some of the largest family businesses in the world.

Here is a link to their report.

Often when people like me get called into a business family, it’s because there’s something going on that could be described as “conflictual” in nature.

One of the first pieces of “good news” from the conflict is that it has heightened the sense that there’s a need to call in an outsider to help get the family to a better place.

Now, if that outsider is open-minded, well trained, and comfortable with a high conflict environment, then why couldn’t the conflct actually spur positive change?

What’s the Alternative?

Too often families will avoid conflict, or even any semblance of conflict, at all cost. Certain family cultures simply don’t “allow” any expressions of confrontation, negativity, or even challenges to authority.

Unfortunately, that often masks important differences that actually really NEED to be expressed, brought out, and dealt with.

One of the first pieces I recall reading about this, the one where you could say I had my “A-Ha moment” on this subject, was “The Invaluable Gift of Conflict”, by Matt Wesley.

 

Two Main Components

The presence of conflict, aside from it resulting in the arrival of an outsider to assist in moving the family forward, is also that visible conflict is preferable to simply having issues simmer quietly under the surface.

The consequences of unexpressed issues can be bitterness and dissatisfaction that lasts for years (decades?) before finally exploding. Unaddressed issues will often only get worse with time.

But the second “good news” aspect of conflict in a family business is the “energy” that it can create, and that energy can be harnessed, for “good”.

 

Stagnation and Apathy

One of the side effects of having people who are displeased in key positions (in the business or in the family, if not both) is that it can breed apathy and a feeling that things will never change, or that they’ll only change far in the future, and only when their perceived “problem person” is gone.

That apathy and feeling of resignation can turn into stagnation very quickly.

Conflict that erupts and becomes visible can be much healthier because at least you can see it and you’re forced into action to deal with it.

 

“One Story”

Back to the presentation by Astrachan and Hall.  The biggest “take home” message for me was their idea of creating “one story” for the family to tell.  Some background and context are necessary here.

They described a situation where there was a severe rift in a family, yet a couple of the branches of the family managed to come back together.

One of the keys to making it all work, was to come up with the “one story” that the family would tell (to themselves and to the world in general) about the business and the family history.

 

Singing from the Same Hymn Book

Any family business that has lasted more than a few decades will do well to compile and tell their story, if only for the “marketing” power that this can have.

When it comes time to “inculcate” younger members of the family into the business’s culture, these history lessons are pretty important too.

But in the case of a family “coming back together” after a rift, the part of the story dealing with the cause of the rift, and more importantly, the way the family overcame it, can be huge.

 

Positive Change

The presentation (and this blog) are about positive change, and getting the story straight can have more of a positive influence than many people will realize.

The first step may just be to learn to “embrace” the conflicts that you can actually see.

You can only get through difficulties when you actually put things “on the table”. And if you need outside help, then get some.

Family “WealthCo” Opportunity Knocks

Family “WealthCo” Opportunity Knocks

A couple of weeks ago I travelled to Toronto to attend a one-day investment conference aimed at Family Offices.

As someone who used to be interested in the nuts and bolts of investing my family’s investment assets, I used to attend a lot more of these events

I had a bit of a flashback as I listened to speakers talking about the future direction of the S&P500, and what the Fed was expected to do with interest rates.

But I let out more than one contented sigh of relief, as I also recognized that I have now found more interesting things to occupy both my mind and my time.

The Family Office aspect of the conference thankfully added some more interesting ideas to the agenda.

 

Liquid Assets

The first noteworthy take-home message that I got from the day came from the very first panel.

On stage were a number of investment specialists, all of whom are charged with providing investment vehicles and advice to a number of family offices and families of wealth.

Most “family offices” are formed after a “liquidity event”, in which a substantial business asset is sold by a family, creating a pool of capital available for investment in other assets.

 

The Family “WealthCo”

One panelist (whose name escapes me, otherwise I would happily credit him) noted that when he has a client who experiences such an event, he makes sure that they do not become complacent.

Too often (and I have seen this up close myself) when a family sells an operating company and winds up with a proverbial “pile of cash”, they think that things are now going to be so much easier.

They wrongly believe that they’ll be able to become “Do-It-Yourselfers” for much of what they’ll now need to manage.

The speaker related that he always insists that these client families realize that whereas they previously had an “OpCo” (operating company), they were now the proud owners of a “WealthCo”.

This WealthCo requires diligent leadership, qualified people, and formal procedures and governance, just like the OpCo did.

His message is worth keeping in mind, and I’ll certainly be using his term going forward.

 

Opportunistic Opportunities

During the same panel, I got another interesting “blog-worthy” tidbit, and this time the fact that I don’t recall the speaker’s name may be a plus.

Speaking without notes, someone was talking about evaluating opportunities, and used the adjective “opportunistic” and then searched for the right noun to complete the phrase.

He eventually ended up uttering the phrase “opportunistic opportunities”, to a mild chuckle. I note this not to make fun of someone on stage searching for the right word (been there, don’t that) but because his “expression” made me realize something important.

 

Not All Opportunities Are Created Equal

The point that was driven home for me is that not all “opportunities” that are presented to us are in fact “opportunistic”.

In fact, one of its biggest challenges a family “WealthCo” faces is the careful selection of which opportunities to pursue.

As someone who’s selected some very good opportunities over the years, I must grudgingly admit that I have made a number of poor choices too.

And if you think that you’re qualified to “cast the first stone” as the exception, then I must either congratulate you, call you a liar, or suggest you scan your memory bank again for some examples.

 

Diligence and Governance

Earlier I noted that a WealthCo requires procedures and governance, and I know that it’s tempting to really enjoy the newfound freedom that comes with putting liquid investable assets to work.

There can be a tendency to see many opportunities as being much more “opportunistic” than they really are at first glance.

You need to force yourself, as a family, to look at your family wealth as a “WealthCo”, that needs to be managed and governed in as serious and diligent a manner as you ran your former OpCo.

 

Think (and ACT) Like a Family Office

In my book, SHIFT your Family Business, Chapter 9 is called “Think Like a Family Office”. The WealthCo idea takes it a bit further, and actually suggests that you “Act Like a Family Office” too.

WealthCo is just another way of saying it. However you say it, just don’t get complacent with the newfound freedom liquidity brings.

Govern yourselves accordingly.

Next Week: I’m looking forward to the first ever Guest Blog post here next week. Kim Harland will be supplying a guest piece here, while one of my original blog posts will be going to her subscribers.

Family Advice in Biz

Dealing with Spouses in a Business Family

Dealing with Spouses in a Business Family

This week’s post was inspired by an email I received from a colleague. She sent along a video blog she’d watched that spurred her questions.

Coincidentally, I’d just watched the video that morning. It was from Wayne Rivers of the Family Business Institute.

 

Your spouse is CRITICAL to your planning

The video talks about why it’s so important to involve the spouses of family business principals in all of the planning that gets done.

Rivers is speaking about the very early stages of planning, for the work business families face when transitioning a business from one generation to the next.

Not involving the spouses at this stage would clearly be a mistake.

 

All of the In-Laws ? 

The questions from my colleague, however, went much further than simple planning, to full blown governance questions, which take the issue to a whole new level.

When you’re talking about two or three generations, including many adult children with spouses and children, the question of involving spouses can get pretty tricky in a hurry.

 

Three-Circle Basics – Again

Here are some of the essentials that come to mind when dealing with these situations:

  • There are three circles, and each is its own “system”: Family, Business, and Ownership
  • Each system is made up of different groups of people, who then need to come up with ways to govern themselves, i.e. communicate and make decisions together
  • Some questions that business families face can become pretty ambiguous, so it’s paramount to think through which questions need to be addressed by which group. This is NOT a one-shot deal, it will come up over, and over, and over again.
  • Rules about who belongs in which group need to be clear, and they should be made by the members of each group
  • It’s easier to start with a small group when making the rules, and then to carefully enlarge the group afterwards
  • All rules that a group makes for itself should be logical and clearly defined

Multiple Governance Layers

There can also be more than one group in each circle.

In the business circle, at the most basic level, there are likely different groups or committees charged with certain day-to-day tasks.

At the other extreme, the business may have a board of directors or executive committee, charged with big-picture decisions.

(Yes, I realize that many founders act as their own self-contained, “one-man-show” board and executive committee.)

It’s possible to have a variety of people or groups who make decisions at different levels.

 

Family Assembly versus Family Council

For the family circle, when there are more than a dozen or so people involved, you may have a “family assembly” that brings together everyone with a stake in the family.

In order to translate their wishes and needs into a coherent forum for decision-making, they may elect to have a “family council” to represent them.

There would typically only be 5-10 family members on the council, whose role is to represent the views of the larger group.

 

Voice versus Vote

One of the most important concepts to always keep in mind here is the difference between having a voice and having a vote.

Everyone should have a voice, an opportunity to be heard. It helps when they’ve all been informed, so that when they do voice their points, they do so in an informed fashion.

If some members are voicing things from a position of ignorance of the issues, often simply clarifying things will go a long way to diminish the volume of their voices.

Many “complaints” simply stem from a lack of information.

Everyone usually wants to be informed, and to be heard.

 

Rules for Inclusion

The rules for inclusion must be clear and also “clean”, i.e. easily explained and interpreted by anyone. For example, if my wife is in, so is my sister’s husband.

There’s no room here for picking and choosing without solid reasons.

All of this is easier said than done, of course, and easier in theory than in practice

The key is to go slowly, it’s not a race. Taking the time to get it right will be well worth it in the end. Building consensus takes time.

 

How Many Is Too Many?

The photo I chose to accompany this post is a bit of a trick.

There are 15 people at that meeting.

That’s NOT a good number to begin with.

A cartoon of a man who broke a mirror and is trying to clean it up

Start cleaning up your M.E.S.S.

Procrastinating is a topic that gets lots of attention, because people blame their problems on an inability to get moving to get things done.

I get that it can be difficult to get things started, but instead of talking about procrastination, I prefer to think in terms of “inertia” and “momentum”.

Procrastination is more about “why”, whereas inertia and momentum are observable phenomena.

 

Physics Over Psychology

Maybe it’s because the “physics” side of things seems easier to grasp than the “psychology” of procrastination, which is about why we put things off.

Recently I was talking to a member of a family facing some complex inter-generation transition issues. It became clear that the enormity of what was in front of them was a significant stumbling block to mustering the courage to move forward.

It was while I was enumerating some of the ideas around ways to get started that I stumbled upon a mess.

Well, not a mess, but a M.E.S.S.

 

Start Moving 

The M in the mess is for Moving, as in “Start Moving”.

This is all about creating some action. Thinking and planning are great, but by themselves they are useless.

You need to introduce some action, even if you aren’t sure that you know the perfect first move. Sometimes you need to move backwards before going forward.

If you’ve ever had your car stuck in the snow, you know that rocking the car is the best way out, and that means back and forth, and once you’re unstuck, then you can figure out the best way to your destination.

 

Start Early

The E in the mess is for Early, as in “Start Early”.

I know that nobody has a rewind button, so we can’t actually start something yesterday, but if you could, that’s often what I would recommend. (see: There Is No “Rewind” Button)

Like any kind of planning that involves multiple generations in a family, getting an early start on things is usually a good idea.

How often do you hear about people who got into trouble and then said “if only we had started earlier”, compared to how seldom they lament starting too early?

 

Start Small

The first S in the mess is for Small, as in “Start Small”.

It often doesn’t take that big a move to undo the inertia that holds us back. We think in long term moves over months and years, but it is the small gestures that take only seconds or minutes that are the essence of those bigger moves.

If you want to run a marathon but have never even done a 5k, well maybe you need to be more realistic and start with an attainable goal.

If you haven’t had a productive conversation with your kids without it turning into a screaming match, then planning a weekend family retreat is probably not the step you should be aiming at.

 

Start Slowly

The second S in the mess is for Slowly, as in “Start Slowly”.

One of the problems with the “overcome procrastination” mindset is that once you get up the nerve to move, there is a tendency to want to go quickly.

That can backfire, because moving too quickly can result in injury, mistrust, and confusion.

When you decide to try to run 20k to train for that marathon right off the bat, you will probably get hurt. When you suddenly start talking about writing up a family constitution next weekend, after hardly allowing any family involvement in decisions, it will be met with skepticism and confusion.

 

Recognize that it’s YOUR Mess

If you continue to do nothing, you will have a mess to deal with and it will be YOUR mess. If you don’t accept responsibility for it, there won’t be much anyone else can do to help you.

 

Start cleaning up the M.E.S.S.

It’s your mess, so start cleaning it up. Get Moving, and do it as Early as possible. Start Small and Slowly. And keep going, so that you can gain momentum.

As you begin to move and clean it up, that movement and progress will attract others to join in and believe, and they will help you.

At the end of the day, getting the others involved in figuring things out is what you are really after, isn’t it?

 

Bottom Line: Start Moving, start Early, start Small, and start Slowly

 

5 Things you Need to Know: Family Governance

5 Things you Need to Know: Family Governance

A few weeks ago, at the end of “Family Governance, Aaaah!” I promised to follow up with more on the subject, in my “5 Things” format. I said it would be out in February, and this being my final blog of the month, that means now.

  Read more

How the Holiday Season can affect your family Unity

Christmas Presence > Christmas Presents

I’m a big fan of clever wording, so as the holidays approached and I got the idea of “presence” for a blog post, I could not help myself, and absolutely had to make the point about the difference between “gifts” and “being there”.

When we are young, getting presents for Christmas can preoccupy our minds. As we get older, the question of just who is going to show up to celebrate the holidays with us becomes more important.

Between the stage of life where we wonder what Santa will bring us, and that where the number of grandchildren who will be there becomes key, the idea of presence shows up more often than you might think.

 

Listening and Presence

As someone who works with members of different generations in families, I can tell you that one thing that is often missing is good communication. Now do you suppose most of that is because people don’t speak well, or because their listening skills are deficient?

Learning to listen to people is more than simply making sure that your ears are tuned in to their voice. In fact, as much true listening happens with your eyes, and real listening even goes right to your heart.

Listening, especially to those family members for whom we spend so much time working hard to grow our business and wealth, is something most of us could work on and do better.

In order to listen with your ears, your eyes, and your heart, you really have to be present, with all of your senses tuned in. In the log run, the parents’ presence in the lives of their children is worth more than the presents they give them for Christmas and birthdays.

 

Finding your Gift

Speaking of presents in the form of “gifts”, this is another area where parents can be truly helpful to their offspring. I am talking here about the idea of each person finding their gift, i.e. what makes them special.

There are still far too many families where the leading generation sees their children more in terms of resources for their business, instead of a more traditional parental role of helping them find their way in the world, following their natural gifts and abilities.

 

Who is invited; Who shows up 

Many families spend a great deal of time preparing everyone for roles in the business, and not enough do the work to get everyone prepared for their roles in the family.

Family businesses usually have some basic governance in place to run their operations, but the family group itself can always benefit from some basic governance of its own.

It seems like more and more families are getting this message, and many are doing it the smart way and having an independent outsider take the lead in making sure that things are done the right way.

Figuring out whom to invite to family meetings can be tricky, and wondering what to do if some choose not to come to the meetings are issues that arise. Having someone who is not emotionally attached can help navigate these questions and get the necessary momentum started.

 

Being there > Sending a gift

Woody Allen said that 80% of success is showing up, and this can apply to many family situations too. If you don’t believe me, don’t go visit your mother for Christmas and just send a gift instead. Presence > Presents.

This brings up another Christmas related statement I like. People ask me how a family puts a value on the kind of work that I bring with my presence in their family processes.

One of my replies is that it is really hard to put a dollar figure on it. And I then add, “How do you put a value on Christmas visits, if one of your children shows up and decides to drive around for a bit until Uncle Bob has left.”

Everyone’s presence, for the parents, is the best present. I should not have to add that having everyone there simultaneously is assumed to be ideal, as opposed to showing up in shifts.

Family fortunes that fall apart are also a great gift, for the lawyers.

Be there, be present, listen, and communicate. Plan for the family, not just the business.

 

 

Advice to get a family more coordinated

Helping Uncoordinated Families

I am not sure what it is about my brain, but it will often catch a word in one context, completely forget about it for weeks, and then light up like a fireworks show later when that word surfaces again in a different context.

The word will then dominate my thinking for a while, until I write a blog about it. Thanks for coming along for the ride as we deal with this week’s word, “coordination”.

 

Advisors: Cooperate or Collaborate?

As an advisor to business families, I am forever alert to the goings on in this space, and there’s lots of talk about how professionals who serve families should work less in their individual silos, and much more collaboratively.

I believe in this, of course, yet I am also realistic in my understanding that this is a tall order for many professionals who simply don’t know how to actually do this well, and for whom the short-term negatives will often seem to outweigh the associated positives.

Some like-minded professionals have put lots of work into trying to define the benefits of working collaboratively, as illustrated by this great NAEPC white paper.

I first learned of this document in July, at a breakout session during the annual Rendez-Vous of the Purposeful Planning Institute, where collaboration was shown to go much further than simple cooperation.

Cooperation should be a given between your advisors, but full collaboration may be a step too far for many. There was also some talk about coordination, as an intermediate place.

The word coordination stuck with me, since acting as a “coordinator” is something I already do while working with the members of the family.

 

Bowen Family Systems Theory

This week, I was in Washington, taking part in the Postgraduate Training Program at the Bowen Center at Georgetown University. Our early morning presenter on each of the three days was Dr. Dan Papero, and as usual he did not disappoint.

He presented some of his views on “Differentiation (of Self) from the ground up”, and along the way, there it was again, the magic word, “coordination”.

The specific context of which he spoke it is now a blur to me, but the jist of the idea was that in a family system, coordination was something to be aspired to. So there it was again!

My head began to spin with the concept of coordinating not just the advisors who work with families, but the members of the family themselves.

 

Clarity, Clarity, Clarity

The word “clarity” has also been front and center in my brain lately, and it struck me that coordination and clarity have somewhat of a symbiotic relationship.

Wait, what?

One of the biggest hurdles that a family must overcome to get their generational wealth transition “done right” is getting everyone on the same page, i.e. having a shared clear picture of what is at stake and what needs to be done.

When I am asked how I can help such families, providing better clarity is usually my top answer.

Once the picture of what needs to be done is clear, the work of organizing the family’s structures and governance then begins in earnest, but this work does not just magically happen.

You guessed it, that work must be coordinated.

The family’s work must be clear and coordinated, but much like the chicken and the egg, we can never be sure which one comes first.

 

Back to the Three Circle Model

It is is complex because it combines the three areas of the family, the business, and the ownership (see The Three Circle Model) and these three also share in the “which comes first?” dilemma.

 

Clarity before Coordination or Vice Versa?

Families who undertake the work required to achieve some family alignment will be better coordinated and therefore be much more clear on the work to be done.

And families who are clear on what needs to be done will find it easier to coordinate this work.

Some families are naturally better at this than others, but most could benefit from outside help.

The families that I had in mind when I titled this piece shall of course remain nameless. Hopefully they do not rhyme with your family name.

Most families are not nearly as coordinated as they could be or should be. Clarity, from an outside perspective, can be an enormous help.

 

Brainstorming your Family Legacy

The word “legacy” can conjure up a variety of thoughts and opinions, because everyone has their own take on what it is, as well as what it should be.  When you add “family” to it, and raise the subject of “family legacy”, there is even more disparity in the responses evoked.

I recently took part in a training program at the Canadian Institute for Conflict Resolution, during which we took turns leading a group brainstorming exercise. Given free reign to use the subject of our choice, I decided to pose the question “what is family legacy?” to see what I might learn from my small group.

As someone who thinks about (and talks about) this subject on a regular basis, I thought it would be interesting to hear what a group of strangers, most of whom did not come from a business family, might have to offer on the topic.

They were all between 25 and 55, most worked for the government (this was in Ottawa), and I am reasonably certain that none of them came from what one might term a “legacy family”.

The exercise was a success, insofar as I filled up five sheets of flipcharts and stuck them to the wall, with around 40 different words that came up from the group.

When brainstorming, one of the main rules is that there is no debating what is a good or bad suggestion, it’s just an open “brain dump” where what one person blurts out will hopefully tweak something in the brain of another, and spur even more ideas.

Some of the expected and positive words that came out were:

–         Traditions; Reputation; Loyalty

–         Money; Memories; Trust

–         Supportive; Caring; Community

Of course there were also some negative ideas that surfaced, such as:

–         Dysfunction; Limiting; Stressful

–         Gossip; Meddling; Conflicts

–         Secrets; Façades; Bullshit

A brainstorming exercise is normally just the first step in a longer facilitated process, designed to get people working together, overcome inertia, and put a bunch of the pieces of the puzzle on the table to get going.

The real work comes next, when you take the ideas gathered and start organizing them, debating their merits, and figuring out what you are going to do with that information.

Working with a real family, the follow up question, “what is OUR family legacy?” would have been an obvious next step.

There is a big difference between personal legacy and family legacy, but when the founder of a business family is still around, a large portion of the family legacy naturally comes directly from that person.

In order to create a true family legacy, the key is to start when the founder can still contribute, and in fact OWN the process.

The family needs to capture the major values, traits, and principles of that person and then figure out how to make sure that they are preserved and transferred down to the following generations. If this is done correctly at this point, the succeeding generations will then have the task of maintaining the legacy that has been established.

Of course none of this just happens all by itself.  Someone needs to care enough to first stop and think about it, talk about it, figure out what needs to be done, decide who needs to be involved, and get things moving forward.

In the long run, the family must also figure out how they are going to make decisions together, how they are going to communicate, and how they are going to solve problems together. All of this generally falls under the heading of “family governance”.

If you are the founder, what you do before you go is really all you can do. Once you are gone, it will all be in the hands of others. If you want to leave a family legacy, building the financial assets is just the first part, and some say the easier part.

Keeping the family together after you are gone, wow, that’s the tough part.  It can be done, but like I said above, it won’t happen all by itself.

Essentially, you need to stop working in your family business, and start working on your business family.  Intrigued?  Check out: www.ShiftYourFamilyBusiness.com. It is my #1 book recommendation.  I also like the website.

Need help getting started?  sl@stevelegler.com