Both Are Needed, But Not in the Same Places
So many issues that families face in transitioning their wealth from one generation to the next come down to questions around timing.
You’ve got people from different generations, so you automatically have different realities relating to their current life cycles, which naturally make them feel certain urgencies that others might not appreciate.
Somehow things often go better after everyone has had a chance to share their viewpoints in ways that others can suddenly understand, but that doesn’t happen often enough, so let’s talk about that here.
The Bigger Picture: An Upstream View
Most of my blogs are “evergreen”, meaning that they can be consumed at any point in time, because they don’t depend on current events or seasons.
I’ve diverged a bit this year, thanks to the pandemic that had me refocusing topics this past Spring, and lately there’s been lots of focus on my summer weeks at my cottage.
One advantage to a nine-hour drive to my cottage is the time it affords me to listen to audiobooks, which are my favourite way to make the drive productive and enlightening.
On my last drive there, I listened to Upstream, The Quest to Solve Problems Before They Happen, by Dan Heath.
It was great and I recommend it, because it actually gives some great perspective on Systems Theory, and an appreciation for how important it is to look at how things are connected.
The Time Element in Systems Theory
If this is feeling a bit like a déjà vu it might be because I wrote From Upstream to Downstream in the FamBiz a couple of months back, and there are only so many “stream” blogs one can write.
That blog concluded with my suggestion to get moving early on eventual transitions, and that segues nicely with this week’s message.
Towards the end of Upstream, Heath has a great line about where to be patient, and where to be impatient, which bring us right back to our timing issues.
He tells us to be:
Patient for Outcomes, and Impatient for Actions
If you’re like me, you’ll want to pause the recording for a minute and make sure you got all of that.
Well, this isn’t a recording, it’s a blog, so you don’t have to stop listening, rewind, grab a pen, and make sure you got it all, because I already did that work for you.
Plus, now I’m going to spell out the key take-away, which I’ll gladly do because Heath, who’s written and sold quite a few more books than I have, is saying something really important, and it also happens to fit right along with stuff I’ve been saying too.
Here’s the simplest reworking of this advice into my own words:
“Hurry up and get started, but don’t be in a hurry to finish”
I’m reminded of a blog I wrote a couple of years ago, There Is No Destination, which was inspired by a quote I had recently read, “There is no destination, it’s ALL journey”.
Being Impatient for Actions
Procrastination is probably the biggest enemy of successful wealth transitions in families. Put simply, people wait too long to begin the work.
It’s funny because work itself is not usually something that families who’ve been successful in building a business are “allergic” to; they’ve typically got a strong work ethic, which is how they got to the point where they’ve accumulated enough wealth to make a difference in the lives of all family members.
I’ve stated this plenty of times, going back to my first book in 2014, SHIFT your Family Business, in which the word SHIFT is an acronym, where the “S” stands for Start!
It’s impossible to start too early.
Being Patient for Outcomes
Transitioning wealth is not an event, it’s a process. And while some processes are better to rush through, this is one that is better when it takes longer.
The two (or three) generations need to take their time and incrementally move decisions and actions from the NowGen to the NextGen.
When you’ve started early, you give yourself time to change course, slow down as needed, and be flexible, (the F in SHIFT) without having to start from scratch.
Adjusting your Timing and Re-Calibrating
This is truly a process with no real end, because even after the elders have left this earth, their wisdom will remain, to be passed to successive generations.
And we should never be in hurry to finish that job.