Posts

Global FamBiz Students Compete for Glory

Global FamBiz Students Compete for Glory

The University of Vermont recently held the 6th edition of their Global Family Enterprise Case Competition(FECC) in Burlington.

It was great to see this fantastic event back on the calendar after a one-year hiatus as they awaited completion of their brand new digs.

I was privileged to be back to serve on a couple of judging panels, a role I had enjoyed at 3 of their previous competitions (2014, 2015, 2016).

 

Truly Global Reach

I was scheduled to judge on Thursday and Friday, but because Burlington Vermont is only about an hour and a half from home, I decided to head down in time to catch the first round on Wednesday afternoon.

There were 13 teams in the undergraduate division and 12 graduate teams.  They had been drawn into divisions Wednesday morning.

As it happened, the “FFI Division” consisted of four teams from outside North America: China, Guatemala, the Philippines and Spain.

I decided to spend the afternoon watching that division because of its diversity.

Let’s just say that I was quite impressed with the caliber of presentations, even before considering the fact that most of them were working in their second or third language.

universities participating in Global family business competition

Tell It To The Judge

On Thursday my work truly began.  I was the lead judge of my panel, and as it turned out, I was also the oldest of the four judges, probably by at least a decade and a half.

We saw presentations by undergraduate teams from Canada, USA and Mexico.

Our task was to rank the four teams in order after we had seen them all present and survive our Q & A period.

As luck would have it, all four judges came up with the same rankings so our deliberations were quick.  This allowed us plenty of time to provide what we hoped would be useful feedback for the teams.

We also spent some time on allocating our six stars (points) for best presenters from the teams that we saw.  There were lots of worthy candidates to choose from.

 

 

Disagreements Happen Too

On Friday, the judging panels were mixed up again and I ended up with 3 new people on my panel, and I was no longer the lead judge.

We were in a graduate division, and the teams we saw were from Canada, USA, Germany and Sweden.

When it came time to determine our rankings, unlike the previous day, the four of us were all over the map.  There were three teams who received a top rank, including one that had received a fourth-place vote as well.

This deliberation wasn’t as simple as the previous day’s.

 

 study rooms for students at a university

Not Much Difference

Family business cases, whether in real life or as captured by those who write cases for University classes and case competitions, are always very subjective.

By “subjective” I mean that every person can interpret everything they read, see, and hear according to their own personal filters, experiences and understanding.

When the teams completed their 20-minute presentations, we had a 10-minute Q & A to probe for more depth and clarification.

We got to hear a lot in that half hour, but considering these cases were based on real-life situations that had decades of history behind them, we were really only scratching the surface.

In the end, the difference between first and fourth was not very large on either day that I judged.

 

 

Better Every Year

From the first time I attended FECC until this year’s edition, things have been getting better every year.

Likewise the field of family business as a subject that Universities teach is also advancing, and the profession of advising business families continues to move in positive directions.

If this blog post is starting to sound like it’s coming from a big fan, then you’re reading it correctly.  If it also sounds like I am angling for an invitation to return as a judge next year, that’s also a strong possibility.

 

 

And the Winners Are

On Saturday night the winners were announced.

Congratulations to the undergraduate winners, from Carleton University in Ottawa, Canada.

In the graduate category, the winning team was from the University of Adelaide in Australia.

Click here for all final results.

And the whole University of Vermont crew deserves kudos once again for a fantastic job of creating and hosting this unique event.

Kid laughing on the bench

“Nose In, Fingers Out” for Family Business

“Nose In, Fingers Out” for Family Business

Today’s topic is one that I’ve been thinking about for a while, ever since I first saw it mentioned back in 2017.

If you Google “nose in, fingers out”, you’ll see that it has been used by a number of people, attesting to its usefulness in creating a mental image that most people can quickly grasp.

I need to give a hat tip to Larry Putterman for putting it on my radar screen first.

 

 

It’s All About Boundaries

A topic that arises often in business families is that of “boundaries”, and there are many reasons for that, and anyone who has ever worked with, or in, a family business knows what I’m talking about.

But while the “nose in, fingers out” idea is about boundaries, it is also a subtle way to discuss how boundary lines are not all necessarily a solid concrete wall, but perhaps just some steel slats.

Boundaries are important, but we need to think about, and talk about, what the boundaries are supposed to accomplish, if we are going to establish the optimal boundaries for our situation.

 

Boundaries

From CEO to Chairman

The area that Putterman specializes in is Boards of Directors, and in the family business context what he is most often referring to relates to a person who has decided to scale back their involvement as part of a transition.

The former leader of the operations of the business, likely the CEO, has decided to pass on the reins of the operations, but to stay involved in a lesser capacity, and not disappear altogether, at least not yet.

There are different ways to take these kinds of steps gradually, of course.  My father brought in a non-family President and stepped into the Chairman role, but kept the CEO title for himself for a while.

Quite often the biggest step is the one where the CEO mantle is relinquished, and only the Chairmanship is retained.

 

 

How Much Is Out, How Much Is In?

In a family business, an outgoing leader will (hopefully) get to the point where, for many reasons, it makes more sense to scale back their involvement, moving from day-to-day operations to more of an oversight role.

These kinds of transitions happen all the time.

But sometimes they work out well, and other times, well, they just create problems.

This is where the “nose in, fingers out” idea comes in.

 

 

What Is Permissable?

The devil, as they say, is always in the details.

The nose and the eyes go together, so you are allowed to look around and sniff around as much as you like.

As you would expect in an oversight role, continuing to observe whatever is going on in the company is allowed and even required.

Below the nose is the mouth, of course, and this is usually the first place that problems begin to arise.

 

 

The Mouth Can Be a Finger (?)

If the nose and eyes go together, does that mean the mouth does too?

Probably not.

Once you step back from the day-to-day to oversight, what you say to people, at least those who are involved in the daily operations, needs to be weighed very carefully.

Problems and confusion arise quite quickly when the old boss walks around and tells “his people” what to do.

In fact, it is at this point where the mouth has become tantamount to a finger.

 

 

Encouragement Yes, Direction No

When the ex-leader talks to the employees, care must be taken to limit their words to encouragement and not direction.

When they are in a board setting or discussing things with others involved in oversight only, then the mouth is once again an agent of the eyes.

 

Road directions in a desert

 

What About Other Family Members?

 

There is another area where the nose in, fingers out situation comes up in family business that I’d also like to touch on here.

It’s the one where family members who do not work in the business interact with others, often siblings, who do.

There are boundary issues here as well, as those who don’t work there have an information disadvantage that they usually need to overcome.

Sometimes their questions seem a little too much like fingers in, rather than just noses.

For those being questioned, the best defence for this is to try to be as transparent as possible, and to get out in front of any questions.

If you satisfy their noses, they will be less tempted to poke their fingers in.

 

 

Boat at sea

Equanimity: Yours for only $250 Million!

Every so often, I hear a word that sounds kind of familiar to my ears, but that also gives me a bit of an uncomfortable feeling.

Usually, the feeling is one of guilt, because that newish, cool word sounds like something that I really should understand, but I’m not 100% sure that I do.

Alas, we cannot know all of the words, and even if we learned one new word every day as some might suggest we do, I’m not sure you could ever learn them all.

 

 

Audible Strikes Again

Over the past few months, I made a few trips to our cottage to work on my next book, and I’ve been taking advantage of my subscription to Audible, the audiobook division of Amazon.

When I listen to music while driving, it sometimes puts me to sleep, so audiobooks have been a godsend.

I recently listened to a couple of books about meditation and mindfulness, and it was in one of those that the latest “special” word struck me: Equanimity.

It sounded majestic and important.  But I didn’t feel like I knew enough about it, even though I was falling in love with the word.

 

 

Let’s Google It

As recently as a few years ago, I would have gone to the bookshelf with the dictionaries and thesaurus and looked it up, but like many people I just Google everything now.

Lo and behold, thanks to some dumb luck with timing, there was a news story out about the world’s most expensive yacht that also happened to have a cool name: Equanimity.

Like a little kid seeing a shiny object, of course, I had to read about this huge yacht that the Malaysian government had just seized that was said to be worth $250 Million.

I’d worry about the definition later.

I even watched a Youtube video of the scandalous Asian billionaire owner getting his first tour of the vessel a few years earlier.

 

Dressing store

Definitions and Meanings

But let’s get down to business here.  From Google, here are some definitions and meanings I liked:

mental calmness, composure, and evenness of temper,

especially in a difficult situation.

Also:

Equanimity is a state of psychological stability and composure which is undisturbed by experience

of or exposure to emotions, pain, or other

phenomena that may cause others to lose

 the balance of their mind.

 

Stable and Composed

Most people probably like to think of themselves as stable and composed, and I guess that most of the time they are correct.

The problem isn’t what happens “most of the time” though, the trouble is what happens “in a difficulty situation” or when “emotions and pain” are part of the equation.

And when you happen to work with other family members, you know that emotions and difficult situations come up all the time.

 

 

Be the Bigger Person

I always say that the only person you can control is yourself, and so the onus is on each and every one of us to strive for our own equanimity, and try to be the most stable and composed person that we can be, in every situation.

Can meditation help you become better at this?  I think it can and there is more and more research all the time that supports this view too.

But before we can get too far, we really have to make a personal decision that this is something that we really want to do, and that we are ready to make the efforts that will be required.

 

Finding Inner Peace

In July 2018, in Rest in Peace, While You’re Still Alive, I wrote about this as finding peace,

But whether we call it peace, calm, composure, or equanimity, it really doesn’t matter, because we all have different versions of it that resonate with us better.

The important thing is to work on getting better at self-awareness and self-control.

 

 

Good for Each Generation

Whether we’re talking about the “now generation” who are currently running the family business, or the “next gens” who are rising to eventually replace them, this is equally important.

It even helps if you have advisors or coaches who exhibit equanimity to help you along the way.

I’ve been in meetings with families where everyone was even tempered, and I’ve been in others with other families where tempers really flared.

Even a little bit of equanimity goes a long way.

 

Family Business Meeting Advice

Calm, Clear, and Connected

Each week in this space, I talk about things that affect the world of family business and family wealth, especially for families who are planning for a successful transition to the next generation.

This week’s subject is family meetings and three ways to assess them after the fact.

My premise is that you should strive for “calm, clear, and connected” meetings.

Let’s take them one at a time.

 

 

Keep Calm and Carry On

I’ve written a couple of blogs on the subject of calm, including Calm is Contagious earlier this year, and Calm-fident Advice for your Family in 2016.

When a family can meet calmly and discuss important matters while everyone remains composed, the results are usually much more satisfying than when voices are raised in anger.

It is normal for some contentious subjects to arise, on occasion, where things get a bit louder and more animated.

When the loud and angry meetings outnumber the calm ones, it’s usually not a good sign.

Ideally, there can at least be some calm parts of each meeting where the family can truly benefit from everyone’s best thinking and ideas.

 

birds flying in a V-shaped form

My Kingdom for Some Clarity

Another subject that I talk about regularly is clarity and the need for things to be clear.

Most people think that they have a clear picture of things in their own head, and that’s probably a good thing.

When we talk about a family though, it’s also important for everyone to have the same clear picture, and that’s very rarely the case.

There are many valid reasons why different people have different pictures of what they believe to be the reality.

Problems will arise when people who are working together to make decisions about important matters don’t have a common understanding of what they’re dealing with.

And a huge underlying issue here is that people often simply assume that their view is not only correct, but also that the others share their view.

One of the benefits of having an outside person present at family meetings is that this person can ask the “stupid questions” that the others would likely be afraid to ask, because they don’t want to risk appearing ignorant.

Of course, this presupposes that you can find an outsider who is prepared to act this way in the interest of clarity for the family.

I laid out some of the questions that you might ask in I Can See Clearly Now in 2016.

 

 

Connected: The State of the Relationships

The third element that I think is important for family meetings is connection.  I realize that this one may seem a bit less obvious to some, but please stay with me here.

Families work best when everyone is on the same page and everyone has an opportunity to be heard.

When I facilitate family meetings a big part of my role is to ensure that each person has the opportunity to speak and contribute.

You may wonder about my choice of the word “connected” here, and I guess I must confess that part of the reason I chose it is that “calm, clear and connected” evokes the old “cool, calm and collected” expression most of you are probably familiar with.

But the connection angle also stems from my understanding of the importance of family systems theory.

 

Family meeting

Interdependent Parts of a System

The members of a family are all interdependent parts of the family system.  I actually try to focus more on the relationships between the people than I do on the people themselves.

I try to notice all the non-verbal cues that I can when sister speaks to brother and son speaks to mother, and so on.

When everyone relates well with everyone else, meetings are more productive and the decisions that are made are more likely to stick.

 

 

Recap: Calm, Clear and Connected

No meeting is ever perfect. In fact, the focus shouldn’t be on any single meeting, but on having a series of regular meetings.

Try to get better from one meeting to the next, as the process evolves.

More calm is generally better than less calm.

More clarity, even if it takes a bit longer to make sure everyone understands things the same way, is better than less.

And when everyone actually connects with everyone else in meaningful ways, that’s ideal.

Think back to your last family meeting.  How did you do? Where can you improve?

2 kids drawing on a kitchen table

“Arts” and “Crafts” in Advising Families

This week I want to look at a couple of different concepts in the domain of family enterprise advising.

They are two separate ideas that happen to also be related, and I want to see what we can learn from the intersection.

 

 

Art AND Science

In 2014 in Family Business Advising: Art vs. Science I wrote:

 “What it comes down to in many ways is that it is an art to deal with the family, while dealing with the business is more of a science.

To be a good family business advisor, you need to be able to bridge both of these, art AND science.”

 

I’ve repeated this often since then, and still believe it today.

Many people who work with family businesses have a preference for the art aspect or the science side, and I think that’s only normal.

 

 

Honing your Craft

While constrasting art versus science is pretty easy for most people to grasp, the other idea may be less clear, and that’s the idea that advising families is a “craft”.

When I first heard this from a respected thought leader in our field, I tilted my head to the side to consider it, and then began nodding in agreement.

 

Arts and Crafts

Arts AND Crafts?

So the intersection of “art” from the world of “arts and science” and the concept of a “craft” that one hones over a career, has been simmering in the back of my mind for a while now.

Ergo this blog post on “Arts and Crafts”, which is a pretty common term, but from a completely unrelated area.

Could it be that working with families on transitioning their wealth to the next generation is akin to “arts and crafts”?

 

 

“OK Google, What’s a craft?”

According to Google, a craft is:

noun, “an activity involving skill in making things by hand”.

While I like the first part about the need for skill, the second part, about making things by hand, may not fit with where I thought this was going.

How about “craft”, the verb?

There, we get “(to) exercise skill in making (something)”.

Again, there’s an emphasis on what the craftsperson is making, which brings up a whole other set of issues when the subject is family enterprise advising.

What are we trying to “make”, a harmonious family?  (That may be a future blog post.)

 

 

How About an Artisan?

What if we switch languages?

A “craftsman” in French is an “artisan”, which also happens to be a word used in English.  Maybe we’re on to something.

An “artisan” is a worker in a skilled trade, especially one that involves making things by hand. Hmmm, feels like we’re back at the same place, until we see the next line:

Artisan (of food or drink): made in a traditional, or non-mechanized way using high-quality ingredients.

I think I finally found what I was looking for!

The “non-mechanized way” that an artisan does something is essential to it being a craft.  Let’s run with that.

 

Arts and Crafts

The Non-Mechanized Art

The art of working in the family circle has always felt to me like there was some sort of “flying-by-the-seat-of-my-pants” quality to it.

I always liked that aspect of it, being confident in my ability to respond to whatever presents itself in a meeting with a group of family members in a way that promotes calm, clarity and connection.

The “non-mechanized” aspect of a craft just adds to that understanding.

There is no checklist or flowchart that tells me what to do next.

 

 

Arts and Crafts = No Accident

Bottom line, I guess I had never thought of arts and crafts as being a part of what I do.

Then again, I have been fascinated by another French/English term that I have heard used in recent years; Bricolage.

My primary schooling was in French, and on Friday afternoons we did plenty of “bricolage”, while friends of mine going to English schools were doing “arts and crafts”.

So, from oxforddictionnaries.com,

          Bricolage: noun, construction or creation from a

                                diverse range of available things.

 

 

Developing Family Governance

When I think about what it takes to support a family through the efforts of developing their custom-made family governance systems and structures, the term “bricolage” actually fits pretty well.

There’s lots of art, and also plenty of craft.

And if the family was involved in it, they will like the result, even if it isn’t beautiful to outsiders.

Building a Bridge vs. Buying One

Analogies have long been one of my favourite ways of trying to convey interesting ideas to audiences.

Most are quick “one-shot-deals” that come up in a conversation and never get used again.

Others have more staying power, and become part of my “go to” arsenal of tales I use to get important points across.

Today’s blog should become part of the latter group, as I will surely find opportunities to use the story behind it with plenty of families, and their advisors, going forward.

 

 

Team Building Exercise

The setting for this story is a campsite in the woods, the week before school starts up again in the fall.

The main characters are 10 High School Seniors, along with a few adult chaperones from their school.

The students had been chosen by their classmates, and approved by school staff, before summer break, to act as prefects for the coming school year.

The trip itself was designed as a team-building exercise above all, and included a major project: building a bridge together.

 

 

Inside Info and Unplanned Events

I was not part of this trip, but I did have someone close to me who provided me with inside information about it, after the fact.

As a parent, I had known about the trip in advance, but the details of the project only came up afterwards, thanks to a number of bee stings that my daughter and a few others had the misfortune to experience.

If you have teenage kids and you’ve ever tried to get information about an incident they were involved in, you know how these discussions go.

“You got stung?  Four times?

How did that happen, what were you doing?

A bridge? In the woods?

Why the heck were you building a bridge in the woods?”

Train crossing a bridge with a steam coming out of it

 

Photographic Evidence on Social Media

A few days later, the school tweeted out a photo of the students and their handiwork.

I’ve gotta say, the picture I had in my head before I saw the tweet was of a more “substantial” bridge.

But it was technically a bridge, so I can only assume that it met whatever expectations had been set.

More importantly, by all accounts the experience they went through together, including the unplanned parts, did have the desired effect.

They’ve been working together and leading all sorts of school activities since then, and while everything doesn’t always go perfectly according to plan, that trip, and the bridge project, did serve a very useful prupose.

 

 

The Magic of Co-Creation

The end result was not so much a bridge in the woods, but a cohesive group of people who knew how to work together.

If they had really needed a bridge, the school could certainly have found other ways of getting one built.

But the overall goal was to have the teens work together on making decisions, communicating, and solving problems together.

The entire exercise was one of co-creation and teamwork.

 

 

Similarities to Governance

If you’re a regular reader, (thanks!) then you may recognize the three elements that I just outlined above:

  • Decision-making
  • Communication
  • Problem-solving

They are of course the main elements that we include when we define governance.

Family governance is something that can and should evolve from within the family group, and it is best done with as many of the key family members as possible.

Please see: The Evolution of Family Governance for more.  (That blog also includes links to previous posts on the topic.)

Girl with a backpack crossing a bridge

 

Can’t We Just Buy the Bridge?

If your family has recently decided that governance is an important part of your intergenerational wealth transitions, I urge you to heed the lesson here.

Yes, you probably could “buy” some elements of a governance plan from some professional advisors and consultants.

There are those out there who are willing to sell you a “family constitution” or a “family charter”.

Be forewarned that you may be buying a “bridge to nowhere”.

 

 

It’s All About the Experience

Like our teens in the woods, it was never about the bridge.

Families often need the experience of building

something together more than they need a bridge.

Once again, I’m arguing that process is more important than content.

The key family members who will have to live with the agreements they make over the next few decades need to be key actors in their design and construction.

Even if they do get stung a few times along the way.

Counterintuitive Thoughts

I can’t recall when it happened exactly, but sometime last century I first heard the word “counterintuitive” and I was instantly smitten.

What a great word.

It’s a word you don’t hear every day, that sometimes elicits a quizzical look from people.  A “fifty cent” word.

So today I wanted to blog about some of my favourite counterintuitive ideas.

 

Traffic Problems

Let’s begin with something that people who live in cities can all relate to, traffic.

When you expect that there will be lots of traffic, your first inclination might be to leave early to get where you’re going.

It may seem counterintuitive to leave late, but once the traffic has let up, you’ll have a less stressful drive and arrive in a better mental state.

 

Reliable Internet Service

I don’t know if it’s just me, or my choice of Internet service providers, but sometimes my hard-wired cable is pretty unreliable and inconsistent.

We couldn’t get cable at the cottage, so we had to “settle” for satellite instead.  I worried about reliability because I need to be able to work from there too.

I do plenty of meetings over Skype and Zoom and was worried that there would be glitches.

Counterintuitively, I cannot recall a single glitch in any call I’ve had with anyone from there, while my cable calls from both my home and office are often sub-optimal (another favourite word!).

 

 

Strong Steel, Weak Glass

Many years ago there were some home break-ins in our neighbourhood that concerned me.

I called in a security expert to see what we could do to fortify our home. I was told that one of our patio doors was a risk.  It’s a steel door containing a large window.

I assumed that the glass was the weak point.

Nope. It was the steel.

The steel is so thin that anyone with a sledgehammer could smash it, but the window is apparently virtually indestructible.

 

 

Family Wealth Transition Examples

Of course I now need to share a few examples from my professional world too.

There are many times when I suggest that people Zig when everyone else is suggesting that they Zag.

And one of my new favourite expressions is “Don’t just do something, stand there!”

 

 

A Bigger Pie Won’t Solve Everything

There is a propensity for people to think that more money is always better than less, and that therefore, making the proverbial pie bigger should always be the goal.

But for a family, there are other forms of wealth besides financial.

Families who concentrate solely on making more money, under the assumption that everything else will work itself out, are fooling themselves.

It may seem counterintuitive, but it’s true.

There comes a time in every family’s life cycle when the focus should switch from how to make the pie bigger, to how the pie will be shared and maintained in the future.

 

A Looser Grip is Safer

On a related note, many of those who create a lot of monetary wealth also like to control everything (and everyone) they can.

When it comes to family members, I will always maintain that holding on with a very tight grip is not a recipe for success.

You probably know people who are guilty of this, even if you have not thought about it in the same terms as my metaphor.

When anyone tries to exert complete control over others, it will eventually backfire.

It always does.

Kudos to those who recognize this and choose a looser grip.

 

Slow Down, Go Far

As I wrote in Going Far? Go Together, I believe that family business and family wealth are much more about “going together” than they are about “going fast”.

If you are concerned with doing things quickly, then going alone, or doing things by yourself, can make perfect sense.

But family wealth eventually reaches a stage where it becomes more about how those who will be on the receiving end of the transition are able to function together as a group.

This ability to work together is rarely something that they’re all born with, and as such, it takes time for it all to come together.

 

 

No Rush, Except…

You really shouldn’t rush the process.

In fact, there is only one thing you should rush here.

Hurry up and get started, so that you can then slow down and take your time getting it right.

 

 

People standing as a group watching sunset

Improving Together in a FamBiz

Writing these blogs each week for six years, my weekly habits continue to evolve.

I still get questions from colleagues about the source of ideas to write about, and my answer remains consistent: I write one blog a week, but I usually get at least two new ideas.

Sometimes the ideas come from somewhere unexpected, and sometimes they morph from one thing to another along the way.

Such is the case this week.

Better Investors

I’m guilty of spending more time than most people on social media.

I like to know what’s going on in the world and Twitter and LinkedIn allow me to follow the people and sources that I like and trust, on a variety of subjects that interest me.

A few weeks ago I saw a post on Twitter from Carl Richards (@BehaviorGap)

“It turns out our job is
not to find
great investments,
but to help
create great investors”

A Blog Idea Is Conceived

My first “A-Ha” came right then and there.

An “Investment” is a product or a piece of content, and it is the thing that many professionals in the investing space specialize in selling.

But as Richards points out, that focus is misplaced.

An “Investor” is a person, and such persons are better served by those who will help them with the entire process of the whole scope of being investors.

 

Teach Them How to Fish

It comes down to the old Bible story about not simply giving a person a fish, but instead teaching them how to fish for themselves.

Do you want to feed them for a day, or for a lifetime?

That’s supposed to be a rhetorical question, but unfortunately many of the business models still followed by many professionals, seem to prefer feeding on a day-to-day business, and being paid for it over and over as well.

Process Over Content

So the thing that grabbed me, as far as this idea being good fodder for a blog post, was the whole Process Over Content question.

It’s certainly not a new idea for me to discuss, but it was from a different angle.

The content pieces that I often deal with are things like legal or accounting structures or trust vehicles, or contracts such as shareholder or partnership agreements.

Strategy of Tactics?

The process part of putting all of these tactical pieces together into a strategy will often be given short shrift.

Too often the concept of making sure that all these pieces will fit together properly is either completely ignored or simply assumed to be sufficient.

In reality, though, this is where many plans fall apart.

 

Blogging Brings Clarity

So here is where this post took a bit of a turn.

I was set to write about the “process” part, but then realized that there was a “people” component that I simply couldn’t ignore.

My blog title was still a big question mark too, and then it came time to search for an image to accompany the post, with a surprise of its own.

A-Ha # 2 – Improving Together

I’ve been using Shutterstock for a while and am usually quite satisfied with the results I get when I search for the right image to go with each post.

This time my search actually kicked things up a notch, as it created another A-Ha moment for me.

I was looking for something using “process” and “people” and there it was…Improving Together.

Holy crap, that’s even better than anything I had come up with so far.

Families Learning Together

When Richards was talking about investors, I imagine that he was referring to singular people, or perhaps to a couple.

My work is always about families, whether I’m actually working with all family members directly, or working with one person, helping them organize and coordinate their family.

The key to finding success for most families, is for them to find reasons, ways, and opportunities to work together and learn together, so that they can eventually get really good at deciding things together.

Co-Creating the Family Strategy

The families who are most successful at transitioning their wealth to the next generation are those who have mastered the practice of involving as many family members as possible in the process.

The co-creation of the strategy is what ensures the buy in, so that the plans actually work.

The time and effort required are always worth it.

Celebrating the Global FamBiz Community

Celebrating the Global FamBiz Community

I’m writing this post from a park bench in London, the morning after the conclusion of the annual FFI Conference, (my fifth).

The Family Firm Institute has been around for a little over 30 years, and I feel privileged to be a part of its truly global community.

The word “community” created the most resonance while reflecting on an angle for this post-conference blog post.

 

Global in Scale

Here I was, a Canadian in London, checking in to the conference on Wednesday, where I meet Richard, from Australia. As we chat, Xavier from Spain arrives, so I introduce them.

How would I ever have made such a variety of connections if not for these annual trips during which I have built and nurtured this group of friendly colleagues?

From Washington in 2014, to London 2015, Miami 2016 and Chicago last year, I was back in London again.

Regular readers know that I also make an annual pilgrimage to Denver each summer for the PPI Rendez Vous, and also attend the FEX symposia closer to home.

But the global reach of FFI is unique.

 

Let Me Count the Countries

Over a dozen Canadians were there, most of whom I already knew. And because FFI was founded in the US and remains headquartered there, the American presence is quite significant. But its scope goes far beyond North America.

Just last night I was out throwing darts with a Venezuelan who now lives in Brazil, another Australian living in the UK, a couple of Norwegians and five American colleagues.

Others I met along the way hailed from South Africa, Denmark and Switzerland, plus too many European countries to count.
Word has it that 40 countries were represented in all.

Special mention goes out to Edvard, who told me that he and his colleagues have been using my Family Continuity BluePrint all over the Netherlands, after he saw me present it last year in Chicago.

 

 

So Much to Share

Along the way over the three days, so much great information was shared, and so many ideas were presented in the many breakout sessions.

It was a pleasure to join great friends and colleagues Natalie, Elle, and Mairi as we got to lead one session from the front of the room, as we celebrated the Practitioner’s Spectrum.

Our discussion was about the variety of styles we use as practitioners when working with clients, from Counselling and Coaching, to Facilitation and Mediation, to Mentoring and Consulting.

 

The Big Deal about Community

As I stated at the outset, I was thinking a lot about the aspect of community this week.

A few months ago, upon returning from Denver’s PPI conference in fact, I also wrote about that subject, in part, in Wanted: Purpose, Passion and Community.

And as I wrote there, a big part of community is that the people need to want to spend time together.

Towards the end of any of these meetings, discussion invariably moves to “so, how was this conference for you?”

My reply usually includes a favourable rating, adds a few minor complaints, and concludes with the fact that I wouldn’t want to miss it.

 

Building Something TogetherGroup of people walking with yellow background

Between FFI, PPI, and FEX, it feels like we’re on the front edge of a wave of progress and change.

The worlds of family business and family wealth are facing important challenges, as families do the work of transitioning their assets to succeeding generations.

I love coming together with others who work in these areas, to share ways that we can all do a better job. We all want to be reliable resources for these families who are trying to do things better.

It truly does feel like we are building something together, not just for our lifetimes, but for those who will succeed us.

 

 

Many Parallels

There are many parallels between us, and the business families we serve.

We come together regularly because we enjoy doing so, and we have a common cause we are working for, which will likely outlive us all.

Many of our family clients feel as if they are the only ones experiencing their family issues, which of course is false.

As practitioners, we can also feel a bit lonely at times.

Getting together with like-minded colleagues to share ideas and re-energize only makes sense for us as well.

Why not join us?

See you in Miami, October 23-25, 2019.

Dog Holding leash in-front of the door

Ready to Lead > Ready to Leave

Certain topics come up over and over again in the world of family business.

Today we’ll be looking at two of them, although when you get right down to it, maybe it’s really just one, because they’re often wound pretty tightly together.

As you may’ve already gathered from the title, I’m talking about a changing of the guard at the top.

Some Batons Are Sticky

As I wrote in my Quick Start Guide on this subject, Sticky Baton Syndrome(Ask Prince Charles) there are plenty of cases where the person at the top of a family business is just not ready to leave.

There are all sorts of excuses that are typically mentioned as to why they must remain in place.

Some of them are even true, and some of them are actually good reasons. Many, however, are just excuses, given by people who are simply scared to face certain realities.

bird leading other birds

The Father of the Three Circle Model

In September I was in Niagara-on-the-Lake for the annual Family Enterprise eXchange (FEX) symposium, featuring John A. Davis as one of the keynote speakers.

If you don’t know who Davis is, he’s one of the co-creators of the Three Circle Model, of which I am a big fan.

See: Three Circles + Seven Sectors = One A-Ha Moment

He regaled the crowd with a presentation about the “Future of Leadership” and then led a discussion with Philippe DeSerres that was also very well received.

But my take-home message from his talk was something he only mentioned briefly in passing, right near the end, which was the inspiration for this post.

The Money Quote

He was talking about getting the timing right when it comes to transitioning the leadership of a family business.

He noted that more and more these days, and from his decades of experience as a leader in consulting to this field, there is one factor that trumps the other.

According to Davis, it makes more sense to make the leadership transition of a family business when the rising generation is

Ready To Lead,

than to wait until the current generation is

Ready To Leave.

Notably, he took the time to spell it out, i.e. “lead, l-e-a-d” and “leave, l-e-a-v-e”, just to be sure we all understood him.

I understood. I hope you do too. But just in case, I will continue…

A man leading other people

Too Soon or Too Late

At the outset of this blog, I noted that these two topics are often connected.

The biggest way this happens is that the current leaders will sometimes subconsciously hold back on giving the rising generation the opportunities to show what they can do.

And one of the major reasons that they do this is because of their own desire to remain important.

What Else Is There?

So many business leaders attach so much of their identity to their role as the leader of their business.

I like to think that this might just be too narrow a viewpoint.
Let me explain. The key to this lies in the Three Circle Model.

Note that the Business circle is only one of the three systems that intersect, and that the “big picture” also includes Family, and Ownership.

Step Back to See the Whole Picture

If the leader of the “business” steps back and looks at the whole picture, including the Family and Ownership systems as well as the Business system with which they are already intimately familiar, they will see many other, greater, opportunities.

If the business is a huge success, yet the family falls apart and the owners end up in a dispute that has various family members “lawyering up” against each other, then just how important will the business success have been in retrospect?

Three Circle = Three Systems = Three Leaders?

If you’re trying to create a true multi-generational family business, you cannot neglect any of the circles.

Each circle ultimately needs its own governance structure, and likely its own leader, or leaders. Someone needs to foresee all of this and line up and prepare those future leaders.

There comes a point in the life cycle of any business leader when their focus should shift from running a successful business to overseeing a complete enterprising family (i.e. all 3 circles)

So you built a great business, congratulations.

If you want it to continue to survive as a family enterprise for generations, you’ve still got more important work to do.

Stop working IN your family business,
Start working ON your business family.