Tag Archives: Thomas Pyles

10/28/17

Father/Son Conflict—Hidden Depths

In the past few newsletters and blog pieces I have been focusing on challenges younger-generation family members meet when trying to initiate change in their family businesses while the older generation is still in charge. This is a significant issue in family business and I want to go a bit deeper into the subject.

While these challenges may not exist in every family, their occurrence is all too common and all too important to ignore. Exploring these situations, several trigger factors have been observed: levels of emotional intelligence, experiences of intimacy and connection in the father’s and the son’s earlier development, and natural life stages of father and son.

Note:  At this point, for simplicity, I am speaking about these challenges in terms of father and son relationships. And while recognizing there are important differences between sons and daughters in family businesses, I do not mean any of this to be relevant only to fathers and sons.

In earlier articles I have quoted from Maps for Men, A Guide for Fathers and Sons and Family Businesses, written by the father/son team of Pyles and Pyles. [i] In it they point out that the overlap of family and business dynamics, unresolved personal conflicts, lack of trust, difficult interpersonal relationships, sibling rivalry, and generational communication issues are just some of the human issues a father and son must manage.

A good, intelligent starting point to understand these dynamics is to look at the family business and what it means to the father:[ii]

In his book Fighting for the Crown: the father/son relationship in first generation family enterprises, Moveed Fazail noted three vital issues at play within the father’s psychology:

  1. The business is a source of personal identity, pride, legacy, opportunity, and means of providing for his family

2. Fathers do not normally wish ill for their children, but they (fathers) can fear being diminished by them

3. Many individuals in the father’s generation have witnessed the rapid decline of their contemporaries’ energies when they retire, and cannot accept a similar fate

These issues are both subtle and complex. But knowing they exist provides a starting point for conversations that open them up, providing an opportunity for moving forward that respects both the father and the son.

[i]  Edward Pyles and Thomas Pyles. Maps for Men, A Guide for Fathers and Sons and Family Businesses. 2016. Westbow Press. p. 178

[ii] Moveed Fazail. Fighting for the Crown: the father/son relationship in first generation family enterprises. FFI Practitioner, Family Firm Institute, July 16, 2013.

10/15/17

Facilitating Change In Family Businesses—Conversations

In my last article I spoke about the disconnects often present when the younger generation attempts to introduce change into the family business while the older generation is still in charge. Specifically, I spoke about the challenging dynamics between fathers and sons, but what I said is applicable to relationships between members of the incumbent and upcoming generations in general.

So how to bridge these disconnects and transform the nature of these dynamics from challenging to productive? The process requires time, patience, strategy, tact, and a practice of ongoing conversations.

Open, honest conversations are needed to uncover the possibilities for the business under the leadership of the next generation; needed too as a forum for older-generation members to express their concerns and objections. And necessary as well are conversations involving areas in the business where the next generation can be given uninterrupted ownership and control. These help the rising generation develop experience and gain their parents’ trust.

Conversations help the family identify problems and find solutions together. With this aim in mind, the best conversations seek understanding and agreement among multiple stakeholders and concentrate initially on the solutions easier to sell, with measurable actions.

And to conduct perhaps the most fruitful of conversations…, In Maps for Men, A Guide for Fathers and Sons and Family Businesses, the authors write: “Take a walk. Father-son struggles can be reduced, loyalties strengthened, and succession completed on the walk they take together.”[1] No doubt this applies to fathers and mothers and daughters too.

The importance of constructive conversations cannot be overstated. It’s true of course that some families are better at it than others. But with careful guidance—optimally by trusted outside advisors—these conversations can lead to understanding, respect and trust.

[1] Edward Pyles, and Thomas Pyles, Maps for Men, A Guide for Fathers and Sons and Family Businesses. 2016. Westbow Press, p. 177

07/7/17

Wealth Transfer And Human Capital

This week I am continuing to present ideas and passages from Maps for Men: A Guide for Fathers and Sons and Family Businesses by father and son authors Edgell and Thomas Pyles.

On page 186, the Pyles’ reference Family Wealth: Keeping It in the Family by attorney and family business consultant James E. Hughes Jr. According to Hughes, the top reason for failure of transferring wealth across three generations “is that family leaders concentrate on the family’s financial capital to the exclusion of its human and intellectual capital.”

The Pyles’ go on to present results of a study by Dr. Dennis T. Jaffe with Wise Counsel Research. The researchers identified a set of seven core qualities common among families whose net worth exceeds $200 million who, through at least three generations, have successfully transitioned their wealth. Among these: Active development of human capital.

When it’s so important, why is this core quality so often neglected? The Pyles’ research shows that the reasons are primarily psychological. Loss of trust, lack of communication exact a high price. Building relationships among family members; accepting weaknesses, developing strengths, encouraging ambitions, imparting values is essential for transitioning “talent” capital through the next generation, and thus ensuring the successful transitioning of monetary wealth as well.

The Pyles’ issue a warning: “Considerable creative and constructive effort can be directed at crafting sophisticated trust documents, elegant business plans, and family constitutions, but the keys to implementation are locked up in the family psychology.”

06/23/17

Maps For Men—A GPS For Fathers And Sons

In my previous newsletter and blog post I referenced one of the most important books on my family enterprise bookshelf: Maps for Men: A Guide for Fathers and Sons and Family Businesses, authored by Edgell and Thomas Pyles—father and son.

The Pyles’ argue that for a family business to be successful fathers and sons must consistently confront sensitive situations and implement crucial decisions—both financial and emotional—in a forthright manner. They believe there is no room for passivity or neglect.

Early in the book the authors acknowledge their deliberate exclusion of mothers and daughters from their discussions—a point of contention which has been raised when I have spoken to others about their book. They write that they have a “deep appreciation for the heroine’s journey, the role of the mother in the family and the leadership provided by women in the business world.” They also recognize their concepts with regard to men may parallel a woman’s journey. However, their work is directed toward helping men understand their relational and generational issues.

The authors define their purpose for the book—set up a framework to help fathers and sons understand and solve their personal and professional issues, improve their communication and decision-making skills and achieve a leadership advantage in growing and managing a family company. Their premise—the way fathers and sons live their lives will be decisive for how the business turns out.