No, YOU Don’t Understand!
This week I attended a presentation at a local University’s Family Business Center.
The guest speaker was a local legal professional from a well-known firm, and she was there to talk about things that business owners need to pay attention to when doing the legal end of their estate planning.
As she regaled us with her stories, a certain phrase came up a couple of times. When I heard it the first time, I was mildly amused. When I heard it again, I knew that it was going to be the subject of this week’s blog post.
The scenarios were the same each time. During her discussions with clients, at one point the client would say, “No, Janet, you don’t understand…”.
Who doesn’t understand whom?
After listening to the client’s explanation of what she did not seem to “get”, she would turn it around and retort with “No, YOU don’t understand”.
In my experience with families, these kinds of exchanges take place quite often, and they happen at several levels.
They happen within the family, between members of different generations, and also within groups of the same generation, such as ia sibling group.
They are also common between the family (or its representative) and its outside advisors.
When these types of exchanges take place, there is nothing inherently bad about them, at least on the surface. I am reminded of the phrase, “It’s not what happens to you that is important, it’s what you do about it”.
OK, so NOW what?
When the person who comes back with the “No YOU don’t understand” then goes on to lay down the law and force their viewpoint on the others, despite what others believe and understand and agree to, there will likely be problems down the road.
The best case scenario for this type of exchange is one where the family representative is dealing with an advisor and it is the family leader who concludes that they are not being well served, who then concludes with “And that’s why I am going to find myself a better advisor”.
The whole “I understand and you don’t” is so “I am smart and you are ignorant”, and “I know what is best and you must obey”, and it really has no place either within a business family or between a family and their advisors.
The Search for Clarity
One of my new favourite words is CLARITY. When someone asks what I can bring to their family situation, it has become my go-to first response. I will help bring clarity to the members of the family system.
Clarity, in my view, is not really much more than a common understanding. First, the family needs to be sure that they have a common understanding of where they are today.
People are sometimes tempted to rush into figuring out where they want to go, and I usually need to slow them down and make sure that they all know where they actually are first.
Once they all undestand and agree about where they are, then we can look at where they want to go, and of course, how they can get there. This will also require clarity, or, put another way, common understanding.
Inside the Family First, then Outside
Then, and ONLY then, should there be a meeting among the family’s advisors, again for clarity, i.e. common understanding.
Far too often I see situations where the outside experts are brought in with ready-made “solutions” (i.e. products and services) before anyone has done the work on becoming clear on what is required in that unique family’s situation.
Bringing clarity to a family is hard work and it takes time, but it can be done. Successful multi-generation families have figured that out.
FOR yourselves, Not BY yourselves
Here is what it boils down to:
As a family, you need to figure it out FOR yourselves, but that doesn’t mean that you have to figure it out BY yourselves.
You will likely need some outside help, but the person who helps you will be a process person, not a product person.
Achieving family clarity on “where they are now” and “where they are going together” is what it is all about, and the journey to get there is at least as important as the result.
But it doesn’t just happen by itself.