In many countries, family businesses are a significant part of the economy and an engine room of economic growth. They carry certain attributes that are often a mix of positives and negatives. It’s important for owners and stakeholders to understand what distinguishes them from non-family businesses, and how to leverage the positives and avoid the negatives. Here are a few to think about:

Patient Capital. Businesses that are not slaves to public markets or private equity fund exit timelines. They can have very long timeframes for their target returns, and can ride waves that might cause other businesses to have to shift dramatically or even fail. However, they can lack the urgency sometimes needed, or the drive for regular strategic renewal.

Making Quick Decisions. With a small number of decision-makers who may live in close proximity and see each other regularly, family businesses are often not bogged down by the bureaucracy of larger businesses or corporates. But they may see governance structures, independent voices and oversight as a waste of money.

Employing Family Members. Being able to tap into talent that you know and trust is great. That’s only as long as family members join the business for the right reasons, and with the right preparation, and the family has appropriate policies and mechanisms such as codes of conduct to manage conflict.

Purpose. Being part of something bigger than ourselves (family, community, organisation) is something people find very fulfilling. Whether or not you are a family member, it can be a huge motivation to join and stay, and a great reason to get up every morning.

Consider This: What are the attributes that makes your family business different to a similar business that is not family owned? Are these strengths or weaknesses? How can you use them to your advantage?

Further reading: https://www.forbesindia.com/article/insead/a-career-in-the-family-business-duty-or-choice/82753/1, https://www.manilastandard.net/business/business-columns/green-light/314290834/why-is-individuation-important-in-family-businesses.html, https://hbr.org/2022/09/does-your-family-business-encourage-dissent, https://www.businessdailyafrica.com/bd/opinion-analysis/ideas-debate/dealing-with-an-echo-chamber-family-business-3684340, https://www.moneycontrol.com/news/trends/the-rise-of-purpose-driven-leadership-in-family-businesses-7550971.html, https://www.bizjournals.com/charlotte/news/2021/06/08/family-business-governance-what-to-know.html, https://www.campdenfb.com/article/why-do-you-really-own-your-family-business, https://www.forbes.com/sites/dennisjaffe/2021/01/14/how-to-be-both-a-business-and-a-family-role-challenges-in-a-family-business/?sh=3d7125fb68a0, https://hbr.org/2020/05/create-a-culture-of-generosity-and-communication-in-your-family-business, https://www.forbes.com/sites/francoisbotha/2019/11/28/the-5-cs-of-family-business-success/#74b1ba4dd281, https://www.forbes.com/sites/maryjosephs/2019/04/29/for-family-businesses-strong-governance-is-the-secret-to-managing-risk/#72a262e74461, https://www.forbes.com/sites/sanyinsiang/2019/03/15/reinvention-hylouie-family-business/#2e3c40f34672, https://www.nextavenue.org/benefits-multigenerational-family-business/

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://davidwerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Family Business Superpowers appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/family-business-superpowers/

In many countries, family businesses are a significant part of the economy and an engine room of economic growth. They carry certain attributes that are often a mix of positives and negatives. It’s important for owners and stakeholders to understand what distinguishes them from non-family businesses, and how to leverage the positives and avoid the negatives. Here are a few to think about:

Patient Capital. Businesses that are not slaves to public markets or private equity fund exit timelines. They can have very long timeframes for their target returns, and can ride waves that might cause other businesses to have to shift dramatically or even fail. However, they can lack the urgency sometimes needed, or the drive for regular strategic renewal.

Making Quick Decisions. With a small number of decision-makers who may live in close proximity and see each other regularly, family businesses are often not bogged down by the bureaucracy of larger businesses or corporates. But they may see governance structures, independent voices and oversight as a waste of money.

Employing Family Members. Being able to tap into talent that you know and trust is great. That’s only as long as family members join the business for the right reasons, and with the right preparation, and the family has appropriate policies and mechanisms such as codes of conduct to manage conflict.

Purpose. Being part of something bigger than ourselves (family, community, organisation) is something people find very fulfilling. Whether or not you are a family member, it can be a huge motivation to join and stay, and a great reason to get up every morning.

Consider This: What are the attributes that makes your family business different to a similar business that is not family owned? Are these strengths or weaknesses? How can you use them to your advantage?

Further reading: https://www.forbesindia.com/article/insead/a-career-in-the-family-business-duty-or-choice/82753/1, https://www.manilastandard.net/business/business-columns/green-light/314290834/why-is-individuation-important-in-family-businesses.html, https://hbr.org/2022/09/does-your-family-business-encourage-dissent, https://www.businessdailyafrica.com/bd/opinion-analysis/ideas-debate/dealing-with-an-echo-chamber-family-business-3684340, https://www.moneycontrol.com/news/trends/the-rise-of-purpose-driven-leadership-in-family-businesses-7550971.html, https://www.bizjournals.com/charlotte/news/2021/06/08/family-business-governance-what-to-know.html, https://www.campdenfb.com/article/why-do-you-really-own-your-family-business, https://www.forbes.com/sites/dennisjaffe/2021/01/14/how-to-be-both-a-business-and-a-family-role-challenges-in-a-family-business/?sh=3d7125fb68a0, https://hbr.org/2020/05/create-a-culture-of-generosity-and-communication-in-your-family-business, https://www.forbes.com/sites/francoisbotha/2019/11/28/the-5-cs-of-family-business-success/#74b1ba4dd281, https://www.forbes.com/sites/maryjosephs/2019/04/29/for-family-businesses-strong-governance-is-the-secret-to-managing-risk/#72a262e74461, https://www.forbes.com/sites/sanyinsiang/2019/03/15/reinvention-hylouie-family-business/#2e3c40f34672, https://www.nextavenue.org/benefits-multigenerational-family-business/

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Family Business Superpowers appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/super-powers/

The post Navigating Wealth Beyond Rich Lists appeared first on David Werdiger.

source https://davidwerdiger.com/2023/09/navigating-wealth-beyond-rich-lists/

In many countries, family businesses are a significant part of the economy and an engine room of economic growth. They carry certain attributes that are often a mix of positives and negatives. It’s important for owners and stakeholders to understand what distinguishes them from non-family businesses, and how to leverage the positives and avoid the negatives. Here are a few to think about:

Patient Capital. Businesses that are not slaves to public markets or private equity fund exit timelines. They can have very long timeframes for their target returns, and can ride waves that might cause other businesses to have to shift dramatically or even fail. However, they can lack the urgency sometimes needed, or the drive for regular strategic renewal.

Making Quick Decisions. With a small number of decision-makers who may live in close proximity and see each other regularly, family businesses are often not bogged down by the bureaucracy of larger businesses or corporates. But they may see governance structures, independent voices and oversight as a waste of money.

Employing Family Members. Being able to tap into talent that you know and trust is great. That’s only as long as family members join the business for the right reasons, and with the right preparation, and the family has appropriate policies and mechanisms such as codes of conduct to manage conflict.

Purpose. Being part of something bigger than ourselves (family, community, organisation) is something people find very fulfilling. Whether or not you are a family member, it can be a huge motivation to join and stay, and a great reason to get up every morning.

Consider This: What are the attributes that makes your family business different to a similar business that is not family owned? Are these strengths or weaknesses? How can you use them to your advantage?

Further reading: https://www.forbesindia.com/article/insead/a-career-in-the-family-business-duty-or-choice/82753/1, https://www.manilastandard.net/business/business-columns/green-light/314290834/why-is-individuation-important-in-family-businesses.html, https://hbr.org/2022/09/does-your-family-business-encourage-dissent, https://www.businessdailyafrica.com/bd/opinion-analysis/ideas-debate/dealing-with-an-echo-chamber-family-business-3684340, https://www.moneycontrol.com/news/trends/the-rise-of-purpose-driven-leadership-in-family-businesses-7550971.html, https://www.bizjournals.com/charlotte/news/2021/06/08/family-business-governance-what-to-know.html, https://www.campdenfb.com/article/why-do-you-really-own-your-family-business, https://www.forbes.com/sites/dennisjaffe/2021/01/14/how-to-be-both-a-business-and-a-family-role-challenges-in-a-family-business/?sh=3d7125fb68a0, https://hbr.org/2020/05/create-a-culture-of-generosity-and-communication-in-your-family-business, https://www.forbes.com/sites/francoisbotha/2019/11/28/the-5-cs-of-family-business-success/#74b1ba4dd281, https://www.forbes.com/sites/maryjosephs/2019/04/29/for-family-businesses-strong-governance-is-the-secret-to-managing-risk/#72a262e74461, https://www.forbes.com/sites/sanyinsiang/2019/03/15/reinvention-hylouie-family-business/#2e3c40f34672, https://www.nextavenue.org/benefits-multigenerational-family-business/

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Family Business Superpowers appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/super-powers/

(no spoilers) There’s a wonderful scene toward the end of the final season of the popular TV series Ted Lasso where team owner Rebecca Welton attends a meeting where a “Super League” is pitched. She’s the only female at a board table dominated by old white men, and was rightly apprehensive about even attending the meeting for a host of reasons.

But she speaks up against the plan, which is motivated entirely by its potential for huge profits. “Just because we own these teams doesn’t mean they belong to us.”

This succinctly speaks to the higher purpose of stewardship rather than ownership, and to the notion of considering other stakeholders in an enterprise. A sporting club is often an enterprise with a long history, and one that is expected to endure well beyond the tenure of whomever happens to own it or be on the board.

Whether a sporting club, a non-profit, a family enterprise or generational family wealth, the common thread is the intended longevity relative to the generation who find themselves in charge. In all of those cases, the enterprise does not belong to the owners or directors. Their role is to steward, and eventually step aside for someone else, leaving things in better shape than they found it.

Sometimes in families, it takes an audacious rising generation that might break with previous norms to remind everyone of this important principle.

Consider This: How do the incumbent generation in your family see their roles as leaders (or owners or directors or appointors)? How do the rising generation see their current roles and future roles? What discussions have been had across generations on these topics?

Further reading:

https://www.jdsupra.com/legalnews/why-family-enterprises-need-to-develop-8658356/, https://www.thepublicdiscourse.com/2022/11/86006/, https://international-adviser.com/when-should-families-start-succession-planning/, https://www.wealthmanagement.com/high-net-worth/whose-money-part-3-defining-values, https://www.wealthmanagement.com/estate-planning/whose-money-part-2-build-relationships-based-trust, https://www.forbes.com/sites/joshuastein/2020/05/19/the-long-term-burdens-of–family-owned-real-estate/#1f7e06967c5e, https://www.forbes.com/sites/forbescoachescouncil/2019/06/18/the-third-commandment-of-family-business-succession-understand-the-familys-rights/#134f34c354d5

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Does it belong to us? appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/does-it-belong/

Family and business makes for a complex mix, essentially because of conflict of interest. At any time, those involved wear a mix of ‘hats’: family, owner and employee. This sometimes makes decision making very difficult: what comes first – family or business? Do we give family members a job even if they don’t deserve it?  What if they aren’t performing? How much do we pay them? At the appropriate time, do we gift the business to them, sell it to them, or just sell it for cash?

Depending on which ‘hat’ you are wearing, you may have very different answers to these and many other questions relating to the family business.

While it’s very hard to separate these parts of ourselves – for example it’s hard to just be the the boss and fire a family member who isn’t performing – we can maintain an awareness of the spill over effects to the others hats we wear, and to the family at large.

When approaching these complex decisions, it can be helpful to consider what they would be wearing each separate hat, and then weigh up which hat is most relevant, and the wider implications of the decision. Having externals at the decision table can help clarify which hat are influencing decisions, as family members are highly subjective.

Consider This: Does your family have policies regarding family members and any operating assets? Do family members have to pass a bar to gain employment? Are they paid market salaries? Do you account for the increase in value created by some family members working in the business?

Original articles: https://www.entrepreneur.com/growing-a-business/how-to-fire-a-family-member-in-a-family-run-business/248308, https://hbr.org/2022/09/merit-or-inherit-how-to-approach-succession-in-a-family-business, https://www.thomasnet.com/insights/10-reasons-why-your-kids-don-t-want-to-take-over-the-family-business/, https://www.businessdailyafrica.com/bd/opinion-analysis/ideas-debate/why-it-s-a-good-idea-for-family-businesses-to-form-boards-3719342, https://www.entrepreneur.com/en-in/leadership/12-family-business-heirs-on-navigating-their-way/387203, https://www.forbes.com/sites/theyec/2020/10/08/four-considerations-when-passing-the-family-business-to-the-next-generation/?sh=7a79932b4213

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Succession of a Family Business appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/succession-of-family-business/

Family wealth can be a double-edged sword. With few financial burdens or limitations, one can live a very comfortable life, use the family wealth and connections to create almost any career of life path, and make the world a better place through philanthropy and impact.

But there is a dark side, particularly to inherited wealth: guilt and shame at ‘unearned privilege’ (I don’t like the term, but it works for this), how the wealth was created which may not sit comfortably with contemporary environmental thinking, and the challenges of finding purpose. Wealth can also be an amplifier and source of family conflict.

Most often, family members deal with a mix of these feelings.

In the Tale of the Two Wolves, the grandfather uses a metaphor of two wolves fighting within him to explain inner conflict to his grandson. When his grandson asks which wolf wins, the grandfather answers that whichever wolf he chooses to feed is the one that wins.

To paraphrase Henry Ford, whether you think family wealth is a positive for you or a negative, you are right.

Consider This: What are your family’s narratives about wealth? Have these ever been discussed or articulated? How are they different across generations?

Further reading: https://www.shreveporttimes.com/story/money/2022/08/05/your-wealth-culture-why-matters/10239286002/, https://www.ft.com/content/26806bc4-ff1b-4c7c-b4b0-168486c64ab8

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Tale of the Two Wolves appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/tale-two-wolves/

The leadership transition from Queen Elizabeth II to King Charles III has been a fascinating insight into the preparation and execution of a succession plan. Within minutes of the announcement of her passing, the media was flooded with coverage, clearly well prepared in advance. Established protocols, known to insiders, were quickly put into place. Everyone was ready for this, yet when the moment came there was an outpouring of grief for one of the most widely venerated leaders of our time. The Queen is dead. Long live the King.

Queen Elizabeth ruled for 70 years – about three generations. We can reasonably expect King Charles to rule for about one generation. Looking way into the future, William could ascend to the crown sometime in his 60s (perhaps 10 years younger than his father), and then rule for about one generation.

Elizabeth’s reign was exceptional because she had to take on the role aged just 26. The ‘normal’ path is to become monarch from late middle-age until death, but these are hardly one’s best years to offer in service to the Commonwealth. The system does not have a notion of ‘Emeritus Monarch’ which would allow a shift in role at say age 75-80 so that the rising generation can take their place. Could such a thing ever happen?

In families, we can think of adult life in three stages: rising leader, leader and elder. The elder stage is very important as it allows leaders to evolve into a new role in their later years, and gets the best out of family members while they are in their prime. When an elder passes, the transition can be seamless.

Consider This: Does your family support and facilitate leaders to step away from active roles and become family elders? Are the skills of aspiring leaders being put to good use in support of the family?

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement 
#nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Transition QE2 -> C3 appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/transition-queen-charles/

You join a family through birth or marriage, and leave it through death or divorce. But if by divorce, it may not be possible to fully “leave”, and the process itself can be traumatic for a wide stakeholder group.

A significant focus of estate planning for families is about ensuring that the family assets are “protected” in the event of a divorce. But how about the time until a couple divorces, i.e. the time they are actually married? That time is anything from a day until forever, and yet so much about marriage and married-ins in wealthy families is fixated on a possible future scenario.

As much as we want to engineer a “clean separation” in the case of a divorce, we should seek to facilitate a “clean togetherness” for the duration of the marriage. Children-in-law share a bed with our children, and are the parents of (and pass genetic material to) our grandchildren. Even if they are not allowed “at the table” for family meetings, they are often there by proxy.

The challenge is to frame family policies that relate to marriage in positive terms. The role of in-law children can be an opportunity, not just a risk. If only viewed as a risk, that can be a missed opportunity.

Remember: families start with a partnership of two (who themselves come from different families).

Consider This: How are your family’s policies regarding marriage framed? How are your feelings about married-ins influenced by yours or the family’s previous experience with divorce? Are married-ins ever told “you can’t do [X] because you might divorce?”

Original articles: https://spearswms.com/new-generation-family-lawyers-hnw-divorce/, https://www.wealthprofessional.ca/news/industry-news/saving-family-businesses-from-divorce-during-covid-19/335407, https://www.ft.com/content/d38ab97b-0abf-4624-8063-80bc48599aa3

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement 
#nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Married-ins Until They Divorce? appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/married-ins-until-divorce/

I have a lot of empathy for Tom Brady. While not in his ‘league’ on several fronts, I can fully appreciate his exasperation at the challenges of teaching children with wealth to understand “the real world”. Anyone facing these and similar challenges deserves to be taken seriously, and to get the support and empathy they need to deal with the issues.

There’s just one small catch.

People who don’t have or genuinely understand the experience of living with significant wealth (i.e. 99.9%+ of the population) are not only unlikely to be able to provide empathy and support, but may actually respond with the very opposite.

This is what happened to Brady when he stated in a podcast interview that bringing up his children amid great wealth was “probably the hardest thing for us as parents”.

There are two perspectives of living with wealth: outsider and insider. To outsiders, wealth is viewed as a panacea that will instantly solve all problems. The insider knows this is not the case. The only place insiders can get support and empathy is from other insiders.

The popularity of TV shows like Succession is that they show that wealthy families suffer from the same family dynamics challenges as others: jealousy, rivalry, favouritism. They are just played out with much higher stakes.

Family members need two things: insider networks to provide support, and an understanding of what can and cannot be shared with outsiders.

Consider This: How do members of your family deal with the assumptions and judgments of outsiders? What peer-networks do they rely on to provide support?

Further reading: https://www.newsweek.com/tom-brady-mocked-wealth-hardest-thing-parenting-1724887, https://www.irishnews.com/lifestyle/familyandparenting/2021/10/26/news/five-ways-to-be-a-parenting-boss—and-run-your-family-like-a-business-2482106/, https://www.moms.com/20-baby-boomer-parenting-tactics-that-millennial-moms-are-finally-ditching/, https://www.mamamia.com.au/worst-generation-of-parents/, https://vulcanpost.com/585663/millennial-parenting-discipline-mistakes/

Actionable Generational Wealth Succession: 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives by signing into our newsletter https://DavidWerdiger.com. We will send you the archive links from there.

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement 
#nextgensuccession #intergenerationalwealth #governance #leadershipdevelopment
#entrepreneurship

The post Seeking Real World Empathy appeared first on David Werdiger.

source https://davidwerdiger.com/2023/08/real-world-empathy/