Meeting the family members and any other players is not by any means the first step of a new consulting opportunity. Most likely you have spent time researching and there have been phone and email exchanges well before it is time to shake hands and make eye contact. I have had to make some big adjustments in my consulting practice, as I am sure everyone has. I am sure it has been a challenge for both sides.
- Collaboration: Agreement On Methods And On What “Privacy” Means Gallery10 Keys to Success, Family Business in Today's Economy, Family Business Resources, Family Relationships, Family Values, General, Managing Family Business, Uncategorized
After 20 years of being friends and being familiar with each other’s work, Dr. Jaffe and I were able to use our particular strengths to help solve some thorny issues, without stepping on each other’s toes or working at cross purposes. We shared information and we innovated together because we had agreed on our methods and we understood the enormity of the need for absolute confidentiality.
Everyone has heard about arguments in Family Business. Relatives in the business are all together to make key decisions. Two are deadlocked in a toe-to-toe shout-down with one saying, “I’m right!” and the other resolutely insisting “No, I’m right!” Perhaps yet another is trying to jump in with “Look at my idea!” The meeting agenda has dissolved into a process of Ready! Fire! Aim!
There is a tried and true way to end this, and here is an example. We are a group of five colleagues working together. We need to have dinner but would like to continue our work. One colleague asks the others, “What does everyone want to eat?” Instead of naming restaurants, they listened to all comments and agreed on the following:
- Must be suitable to continue our conversation over dinner, so that rules out a noisy place.
- Must be within 3 miles radius, so we don’t lose momentum in our progress.
- Must be able to seat five guests at 7 p.m., since that time suits everyone present.
- Must have selections on the menu that will satisfy one person who is mostly vegetarian.
Notice that there is not high “ownership” for any of the criteria. After we do a quick survey of restaurants nearby, soon one or two stand out.
The operative word is ownership. So often in family business differences are grounded in whose idea is being discussed rather than what is the idea. In the Little Red Book of Family Business it says, “An Idea doesn’t care who has it. It (the idea) has no opinion on the bearer thereof.” It is preferable to establish the criteria and then list the range of options that might be worthy of consideration. Each option is measured against the criteria, not against who proposed the idea. By eliminating the attachment to […]
Your job managing the family business did not come with a crystal ball. But now, you are getting calls and emails from family members, employees, vendors, suppliers, city officials, the local press, and never-before-heard-from stakeholders about what is going to happen to the enterprise that supports so many. Let me give you a proven solution: appoint an Ombudsman.
There has been a lot in the news lately about “invading personal space,” and I really get why that is so important. Boundaries are a defining concept for every successful family business I’ve ever worked with, and it’s the second of my supporting pillars in my online course, Re-Imaging Relationships For Families In Business. American poet Robert Frost noted that “good fences make good neighbors,” and I would add that good boundaries make good working relationships between family members.
In the nuclear family, usually parents and their children, or perhaps at some point just the siblings, there are relationships that have been developing since birth. Opinions about strengths and weaknesses have been forming for decades, and there are no secrets (usually) about escapades from anyone’s younger days. Normally by the time family members are working together as adults in a legacy business, they have already interacted with each other for decades within the intimacy of the family unit.
The family business must not become a metaphor for family.
Protocols must be different for work talk and family talk. The same is true for behaviors. If a bossy older sister has spent her life picking up projects abandoned by her younger brother, then she will continue to do this in the family business. This will result in the same resentment levels experienced by both siblings as this dynamic has occurred over the years. The family leader must know how to set the boundaries between sibling responsibilities, and preferably with minimum risk to overall business progress. The leader must also know how to arbitrate when boundaries are disregarded. Perhaps that’s easier when a parent is running things, but when a sibling takes over as leader, he/she better be strong enough to insist on a) hands off someone else’s job and b) maybe job boundaries […]
As mentioned in the last blog, we all know that alignment starts with the family leader (presumably you!) In Lesson 2, Pillar 1 of my self-study course, Re-Imagining Relationships For Families In Business, you went through the exercise of writing down your own core values, and giving thought to your own code of ethics. Now you know the direction you want to lead family members who also participate in the legacy family business. Lesson 3 addresses how to align your family and how to deal with any members who are not eager to jump onto the same page as the others.
Something I know for sure: anything attempted without alignment is unlikely to be long-lasting. After 50+ years of working with families, I can say that this is a lesson I’ve seen learned in the hardest of ways. As the family leader, you might dread some parts of the exercises used to discover and distill your family members’ values. Still, you must all agree on the “how-to” before you can implement an agenda of growth and sustainability. I recommend a family alignment model called Values-Based Leadership.
What Is Values-Based Leadership?
Values-Based Leadership (VBL) is defined by The Financial Times as, “motivating employees by connecting organizational goals to employees’ personal values.” In Re-Imagining Relationships, I make these four key points:
• Values precede ethics, and ethics precede performance.
• Foundational values guide decision making.
• VBL is statistically proven to deliver excellent results over long periods of time.
• VBL can be the foundation of a corporate climate that delivers predictable and sustainable results.
If you and your family agree to operate under a Values-Based Leadership model, then your “core values represent the soul of the organization, and they are likely to remain steadfast in the face of changing market trends and fads.” (Pillar 1, Lesson 3.)
Now, on the […]
Alignment is how learning to resolve family issues begins, and this is how my self-study course, Re-Imagining Relationships For Families In Business begins. My use of the concept of alignment is meant to be a 3D acceptance of your basic core values.
It’s an irresistible combination: the SMS Annual Meeting (September 22-25), and it’s in Paris, so here I am. The meeting brought together some 1200 people, about 90% of whom have PhDs in some aspect of planning, and everyone with an interest in sustaining successful family businesses.
From the program: “Family businesses are a prevalent form of organization in most of the world’s economies . . . The aim . . . is to identify and reflect on critical questions regarding latest developments in the field of strategy . . . and specifically related to trends such as digitalization, demographic change, and political tendencies of protectionism.” The Sunday session panel chairs were Fabian and George Tovstiga, both of the prestigious EDHEC Business School (Ecole des Hautes Etudes Commerciales du Nord.) The panelists were Ludovic Cailluet, EDHEC, Nadine Kammerland, WHU Otto Beisheim School of Management, Carlo Salvato, Bocco ni University (and also Vice President of FFI.)
What I want to say is that in my experience, much of the research is focused on what conditions do or do not exist in family businesses. I believe there should be more focus on what actions might be taken by family business consultants to improve overall operations. That’s always been my motivator in working with the over 500 families during my 50- year career. “I hear you. I see your issues. Now let’s do something to change them.”
Many of my peers are also interested in seeing new research be more in the arena of practical applications rather than just esoteric concepts and constructs. Our panel later that week in Paris was more centered on the gap between researchers and practitioners, and we discussed the need for greater dialogue between the groups.
It’s always exhilarating to spend time with […]
In early 2018, in the deep winter of the Rocky Mountains, I sat down to write about what I’ve done for a living for the last 50 years. Yes, 50 years. For the last 5 decades I have worked to help families in business grow, prosper, stay together, keep the love, and pass the torch when the time comes. When I started, there were not many people who could be called in to help a family that was both in business together and in crisis. Now there are college courses in family business management being taught in major universities and there are family business consulting firms all over the world.
I have traveled extensively in this profession, and I treasure the friends I have made and the colleagues I continue to work with in all the various countries. Over the last few years, I observed how the world has changed and how people can now learn about whatever topics they find interesting and/or necessary by just booting up their computers. I acknowledged it was time for me to take what I have learned over my years in family business consulting and make it available in an online course.
On Thursday, September 13, I made a presentation to the Tulane University Family Business Center, and I announced that my new online course is now available. Re-Imagining Relationships For Families In Business takes the learner through what I know to be the Concepts, Methods, and Techniques That Can Work Miracles.
Successful families make a commitment to build and maintain healthy and functional family relationships that further the goals of the family business. Such a platform for success is anchored on these 4 Pillars: Alignment, Boundaries, Communications, and Competency. […]
Have you heard about Europe’s first Executive MBA for family business leaders? Not only it is the first-of-its-kind degree program in Europe, but it is also the only Family Business MBA that has been accredited by the Association of MBAs (AMBA), the prestigious executive MBA accreditation group.
EDHEC Business School now offers the Family Business Global Executive MBA Program.
The students come from different cultural backgrounds, covering all continents, as diverse as Australia, Tanzania, Egypt, Finland, Venezuela, France, Oman, or Reunion Island. They are all family business members with active experience in their businesses and will become the future leaders.
Students join the program to deepen their knowledge and support their family business as future leaders on key challenges including management, family dynamics, leadership, and governance.
How does it work?
The program is held for 15 months with 10 weeks of physical contact hours spread across the EDHEC business school campus and partnering locations, including Paris, Lille, Nice, London, Singapore, Boston and Palo Alto. This allows a truly enriching experience with world-class professors and speakers balancing the local and international dimensions of the class locations.
Classes are held in diverse formats ranging from classical lectures to workshops, experiential learning, family business visits, expert testimonies and coaching sessions.
Whom does it serve?
The Family Business Global Executive MBA (EMBA) is intended for family business future leaders who want to embark on a transformational learning journey to build their legitimacy in the family business, contribute to maintaining family cohesion and responsible ownership practices and business sustainability.
Both members of the family controlling the business and outsiders working in key positions in the family business are eligible for the program.