Author Archives: Rick Raymond

03/5/16

A Family Community

In January 2016 Dennis T. Jaffe, Ph.D. published a book entitled RELEASING THE POTENTIAL OF THE RISING GENERATION: How Long-Lasting Family Enterprises Prepare Their Successors. In it he discusses attitudes and actions that together comprise the success of multi-generational family businesses. 

Jaffe’s book makes a strong case for the idea that family business success is less about building the business and more about how the family goes about creating a family community focused on educating and mentoring the next generation and developing next-generation careers.

02/26/16

Working With Siblings

In a recent blog entry, Seth Godin wrote about options for finding, leading and motivating employees in a small business (he used the term “tiny business”). He characterizes three different management styles, what types of employees work best in each, how they work together, how they relate to being led: “a team of equals, “fellow travelers,” industrialized employees.” He sets forth both advantages and pitfalls inherent in each option.

http://sethgodin.typepad.com/seths_blog/2016/02/managing-the-very-small-business.html

These same types–equals, fellow travelers, employees–will exist in family businesses staffed by siblings and/or cousins whether in leadership or subordinate roles. Understanding the distinctions, their pros and cons will go a long way in strengthening family relationships and the business itself.

Are siblings in your business equals, fellow travelers or employees?

02/19/16

Accepting Anxiety

Last week I wrote about how to keep moving forward in times when we are feeling overwhelmed by challenges in our businesses. My posting today is on a similar theme—managing our anxiety.

Some business owners thrive on anxiety. They require the frenetic energy it delivers in order to do business. Others suffer severely under the weight of its emotional intensity. Neither extreme is desirable.

The ability to manage anxiety in a balanced way is a requirement for success whether yours is a family or non-family enterprise. Reprising last week’s water metaphor—with each set of rapids we navigate we get stronger. The struggles we encounter as business owners are a source of personal and professional growth.

A prerequisite to managing our anxiety is our acceptance of it.

I recently had a conversation with a young second-generation business owner about her process of managing anxiety as she grew the family business. In her view, seeing her challenges as a vital part of her personal and professional growth was an important first step.

To control the anxieties assaulting her, she learned to diminish their overwhelming character through acceptance of her feelings, instead of exhausting her inner resources in struggling against them.

 

02/11/16

Downstream

This past week a number of my clients expressed feeling overwhelmed by unexpected challenges they are facing in their businesses.

Speaking metaphorically, I suggested to one client that he keep the nose of his kayak pointing downstream—that he turn his attention to steering day-to-day business operations. A crisis is not the time for big-picture planning. What is necessary is to focus on paddling past the next group of rocks—not to ponder which may be the best rocks. A few days later he wrote to tell me this phrase kept him moving forward, taking on each new challenge as it came to him.

Our faith in our business and in ourselves increases with each stroke of the paddle. Through flat water, white water, quiet pools, raging rapids, by keeping our kayaks pointed downstream we can successfully navigate the ever-changing currents of business.

02/4/16

But What Will I Tell My Grandchildren?

Seth Godin recently wrote a post with a seven-word title: “But what will I tell the others?” He calls these out as: “Seven urgent words that are rarely uttered.” “The profound question…”

These are, he says: “The words we imagine we’ll tell the boss, the neighbors, our spouse after we make a change or take an action… this drives the choices that constitute our culture, it’s the secret thread that runs through just about everything we do.”

Upon reading this post, I saw its significance to members of family businesses. From their point of view the question that immediately came to mind was: What will we tell our grandchildren about decisions we make regarding our family business? What will we say to them about decisions that will drive the family culture of future generations?

You may see your role in your family business as existing only for the duration of your leadership. Alternatively, you may see your role as growing the wealth of both the business and the family, and passing them on.

You may work to make your business successful for today. Or you may take up the challenge of ensuring a strong foundation that will support the business for leaders of future generations.

You may envision yourself creating a culture and a legacy; inspiring future generations to reflect back with pride on your leadership and your words.

01/29/16

Assessing Emotional Intelligence – The Results Are In

For the past two weeks I have been writing about emotional intelligence and its role in family business. From the many responses I have received, it is clear that this topic has struck a chord with readers.

This week I want to briefly show the value of applying emotional intelligence assessment within a family business. The case is presented by author Ernesto Poza in the 4th Edition of “Family Business,” published by South Western Cengage Learning. I use this text in my Family Business Management class in the Zicklin School of Business at Baruch College, City University of New York.

Poza writes about a family with challenging dynamics. They wished to create an environment of engaged conversation while ensuring all stakeholders were sufficiently respected. Following an assessment of the family’s facility for emotional intelligence they developed a Family Rules of Conduct. The rules they agreed to were:

  1. Focus on the future, not the past.
  2. Be a good listener.
  3. Put yourself in the other’s shoes.
  4. Stay focused on principles, not personalities.
  5. Make “I” not “You” statements.
  6. Say “Got it” whenever speech-making blocks progress.
  7. Disagreements are okay, as long as we are committed to arriving at an improved final decision.

What do these rules tell you about the family’s overall level of emotional intelligence?

Do you think the application of emotional-intelligence assessment tools was useful in this case?

01/22/16

Emotional Intelligence – Do We Have Two Minds?

Last week I wrote about why family businesses are particularly susceptible to the impact of emotional triggers. I observed that, well-directed, emotions can be useful. Successful business families blend cognitive perspectives–thinking, understanding, learning, remembering–with the energy of emotions. At the intersection where these “two minds” meet, the capacity for cooperation, innovation, growth and longevity is born.

The term ’emotional intelligence’ (EI), became popularized in the book by that title by psychologist Daniel Goleman. Also called ’emotional quotient’ (EQ), the idea can be stated as consisting of four capability factors present in differing degrees in each individual:

  1. The ability to recognize one’s own emotions;
  2. To recognize the emotions of others;
  3. To discriminate between different emotions and label them appropriately;
  4. To use emotional information to guide thinking and behavior.

https://en.wikipedia.org/wiki/Emotional_intelligence

There are tools for assessing emotional intelligence factors such as empathy, relationship skills, family relations, social dynamics at work, job performance, leadership and more. With these tools you can identify your own and your team members’ emotional intelligence quotients. While individuals are often found to be stronger in some areas and weaker in others, the good news is that EQ levels can be increased.

Next week I will present how a family integrated principles of emotional intelligence into their family-business model.

01/17/16

You Are So Emotional!

Yes, I am emotional. l am your sister, brother, son, daughter, mother, father, another family member. We not only work together, we grew up in the same family. We share common experiences and emotional history–ingrained touch points that can trigger easily. Because of this familiarity, emotions can spill over into a family business much more often than would be acceptable in a non-family business.

In themselves emotions are not bad; they are valuable. Their energy drives the human psyche; they serve as social signals. When funneled properly emotional energy can be used to achieve significant positive outcomes. Unbridled, emotions can cause untold devastation.

Denying one’s emotions or discrediting those of others is destructive. It is important to cultivate an emotional intelligence to recognize our own and other people’s emotions; to discriminate between different feelings and label them appropriately. We are then better equipped to manage our thinking and behavior to maintain harmony in our families and success in our family enterprises, especially during times of increased stress.

Emotional intelligence is so vital to the success of family businesses that as part of my Family Business Management class at Baruch College, City University of New York, I have students assess their own level of emotional intelligence, and – since we can increase our capacity for emotional intelligence – develop a plan for doing so for themselves.

01/9/16

Family-First or Business-First Revisited

In an earlier blog posting I wrote about distinctions between a family-first and a business-first business. Family-first promises employment to family members based on the family relationship. Business-first promises employment based on the needs of the business and capabilities of the individual; family relationship is secondary.

The question is asked whether family businesses are more sustainable when their focus for growth is placed on the business or on the family. While acknowledging that the health of both are important to multi-generational success, research on family businesses suggests that shifting focus for growth to the family level results in greater entrepreneurial activity and trans-generational value creation.

Said in another way, a family-business is a family focused around a business. There is potential for greater long-term value creation in a business-family that represents a number of businesses centered around a family entity.

01/3/16

Your Job Is To Prepare The Next Generation

In his influential work, The E-Myth Revisited, addressing small business owners, author Michael E. Gerber stated: “Simply put, your job is to prepare yourself and your business for growth.”

Addressed to the head of a family business this admonition applies in modified form: Simply put, your job is to prepare the next generation for multigenerational growth.

Wishing you happiness, health and prosperity in 2016.