Family Business Prespective

Putting Perspective into Perspective

We all see things from our own unique perspective, first and foremost. Our personal point of view serves as our default view of the world.

The ability to see things from another’s perspective is important, and not everyone is good at it, since this ventures into the area of empathy.

But whenever we force ourselves to look at things from a different perspective, it’s almost always enlightening. “Hmm, I never thought about it that way”.


Always Worthwhile

Getting help to look at things from a different point of view is especially useful for those who are successful.

Smart people who’ve had great success can sometimes start to believe that they know everything, and they frequently overestimate their abilities.

For these people, stopping themselves to take a second look can be especially beneficial. Do you know anyone like that?

If you live alone on an island, the perspective of other stakeholders is a moot point. But what about if you work in a business with other family members?


Insiders Vs. Outsiders

Working with business families, I am often forced to remind family members to think about how their ideas will impact the other people involved. Some do this easily, others require more practice.

The truth is, by the time I enter the picture, they’ve already made the most important decision.

Families who take the step of hiring an independent, unbiased, objective outsider to advise them have recognized that a new perspective is not only useful, but essential to successfully dealing with many important issues.


Definitions of Perspective

The more complex things are, the more important the independent ousider becomes. Here are a couple of definitions of perspective (emphasis added):

       – the state of one’s ideas, the facts known to one, etc., in having a meaningful interrelationship

       – the faculty of seeing all the relevant data in a meaningful relationship

Family business situations are full of complexity, with plenty of interrelated issues, stemming from the overlap of the family system, the business system, and the ownership system.

Add in everybody’s individual preferences and, well, good luck!


“Why the world NEEDS family business consultants”

I read a lot of stuff about family business, because I write a lot of stuff about family business. When I get something from the Family Business Consulting Group, I always read it.

This week, they sent out a piece about our profession, and why it is important. I knew that I needed to share it, and wondered about the best way to do so.

Since I was already planning this blog about “perspective”, I decided to incorporate it here.

Here’s an excerpted paragraph, and a link to the article. Please take the time to read the whole piece.

“An excellent family business consultant is probably the only advisor you’ll work with who considers how family,        management, ownership and governance impact each other on a day-to-day basis and is able to create a safe place to openly and creatively consider how these four necessary systems uniquely and powerfully affect your family and your enterprise.”

Link: Why the world NEEDS family business consultants

Relating to ALL the Pieces

A family business consultant (or family legacy advisor), will see how all the pieces of the puzzle fit together from a different perspective.

Seeing and understanding how the pieces relate, without being one of those pieces, is essential.

Anyone who is part of any of the systems simply cannot offer a fully objective viewpoint. And anyone trying to sell you other services will also be biased.


Defusing the Emotions

There are many emotions in family business because family is all about love and business is about money, and when you put them together, things get messy.

Some suggest removing emotions, but they might as well suggest not breathing; emotions will always exist.

This is where a trained outsider is most useful. Someone who can remain calm despite the anxiety in the room, and can slow things down, reminding everyone of the number of different perspectives in the room.


The View from 30,000 Feet

An independent outsider with no stake in the game can provide the proverbial 30,000-foot view, and offer a new perpsective on all the interrelated pieces of the puzzle.

That can make all the difference in creating a shared perspective that everyone can believe in.

Families who have successfully transitioned their business and wealth have rarely done so all by themselves.