Monthly Archives: October 2018

10/27/18

Relevancy Reborn

Recently I had a conversation with a woman who is heading her 2nd generation family business.  She spoke about her father who is in his mid 60s. She told me he does not interfere with her management of the business but does insist on retaining control of some day-to-day operations. She added that he had recently divorced her mother and was dating again.

She doesn’t want to get involved in his personal life, but does want him to play a different role within the business. She believes that with his 30 years of experience he would be more beneficial to the firm as its ‘ambassador.’ In this role, with his industry knowledge and contacts he had nurtured over the years he can spread goodwill, identify potential opportunities and mentor emerging next-generation family members.

This situation shines light on the question of how an older-generation business leader can maintain personal relevancy after the younger generation has assumed control. It’s not uncommon for someone approaching their elder years to be facing this passage. Instead of letting go and moving forward, they may attempt to relive times of their life when they felt most alive.

By transitioning to the new role his daughter wishes him to assume—one that neither he nor the family may have envisioned before—her father’s personal and work relevancy can be reborn.

10/6/18

What’s Important At Thanksgiving Dinner

I recently had a conversation with a potential client that would eventually involve her husband, elderly parents and two siblings. The issue, as brought to me, involved transitioning the management of the family business from her parents to her husband. I learned that among the family members there are differing thoughts regarding the value of the business. There is also some resentment about her husband’s ambitions for the business. Moreover, her two siblings believe that their sister and her husband are taking advantage of their parents.

This situation is complex, yet not unheard of. In the course of our conversation we discussed how developing a clear statement of individual and family values will lay important groundwork for its resolution. We spoke as well of the importance of educating the family members about the systems that underpin the workings of family businesses, and helping them understand best practices employed by successful multi-generational family businesses. Most important though, in our conversation, was the question of how to convince the family members to undertake this education with the help of an outside advisor.

What is fundamentally important here? I suggest it’s family harmony. Will this family be able to sit down together for Thanksgiving dinner next year and enjoy the company of everyone there? If not, the business and everything and everyone associated with it are left in peril.