Tag Archives: multi-generational success

02/8/19

Hiring Professional Expertise For Your Family Business

I’ve always been careful about using my blog and newsletter to support the engagement of family-business advisors, because, while in the many situations the outside expert will provide tremendous benefit, I’ve been concerned that doing so would be perceived as self-promotion rather than honest advice.

Putting that aside, in my experience most successful family businesses, large or small, work with family-business advisors to align goals for the family, the shareholders and the business and future-proof the business against challenges that will be faced by emerging generations.

In looking for professional advisors for your family business it’s important to recognize that family businesses are complex and the expertise needed for a well-run family business is multi-disciplinary. Each area of expertise addresses one of the business’ three primary subsystems: ownership, management and the family itself.

As humans we have a tendency to seek advice from those we know and trust. But as I wouldn’t have my CPA do a root canal for me, I should not ask my business attorney to draw-up my will, or ‘have a talk’ with my children who are playing out their rivalries in the office. Equally, I would be wary of the advisor who does not recognize the multiple disciplines that make up a family enterprise or see a need for expertise beyond their own.

Unfortunately, it’s not uncommon to encounter resistance within a family against hiring outside expertise. In her January 29, 2019, Next Avenue article, Hiring an Outside Expert for Your Family Business*, entrepreneurship and personal finance expert Kerry Hannon brings up the psychological or ego issues around hiring professional expertise for a family business. She suggests that when a family believes they are smarter than an outside person or that they don’t need outside perspective, it’s a sign that they do need to bring in outside people.

There’s a reason 125-year-old family businesses are 125 years old. These families have been studied, and it’s not accidental. Hiring outside professional expertise to teach and implement best practices is vital to the multi-generational success of every family enterprise.

* https://www.nextavenue.org/hiring-outside-expert-for-your-family-business/?hide_newsletter=true&utm_source=Next+Avenue+Email+Newsletter&utm_campaign=1ca7a1cd48-02.05.2019_Tuesday_Newsletter&utm_medium=email&utm_term=0_056a405b5a-1ca7a1cd48-164957277&mc_cid=1ca7a1cd48&mc_eid=6bb3a49c82

 

06/11/16

Grow People

Chinese proverbs are sources of immense wisdom coming down to us through the ages. Ancient they may be, yet they are solidly relevant to our contemporary world. Here is one whose message is directly applicable to long-term success in family business.

“If you want one year of prosperity, grow grain. If you want ten years of prosperity, grow trees. If you want one hundred years of prosperity, grow people.”

http://www.quotes.net/quote/9102

For multi-generational success, “100-year prosperity,” start by preparing your family’s next generation. Introduce your children to the business early. Have them take on minor roles while in school. Include them in meetings where both family and business are discussed. Discuss family and business values with them. Help them learn what the role of a leader entails. Help them craft a vision for the family and the business under their leadership.

Pay attention to the talent in your upcoming generations. See where their gifts can be applied in the family and in the business. Are there born leaders? Are there natural innovators among them; natural communicators; networkers; entrepreneurs?

It’s your job to uncover and nourish next-generation resources,to support the development of their talents and encourage their chosen trajectories.

With the next generation thus grown, the business will not suffer a vacuum; when incumbents retire, when fresh ideas are needed, when upcoming technology calls for new knowledge. And when it’s time to step into responsible roles, they will serve the family and the business well and far into the future.