Very Important Words for Families to Understand
This week I’ll cover some ground that will feel quite familiar to regular readers, but will combine some elements in new ways.
I often spend time considering the specific words we use when we talk about ideas around working with families, and there will be some of that too.
And of course, the genesis of the idea for this blog will also be part of the scene too, because this week it comes from some folks I consider both friends and mentors.
Let’s get on with the show.
Teaching Family Governance to Advisors
I’ve been a proud member of the faculty of the Family Firm Institute for a few years now, where I was brought in as one of the instructors for the course on Family Governance. It’s something close to my heart and has long been the subject of my writings here.
When I joined the faculty, there were already some great folks teaching the many courses that are part of FFI’s Global Education Network (GEN) program.
Included among them are Kirby Rosplock and Dennis Jaffe, both of whom taught me when I was a student, and whose industry experience cast way longer shadows than mine.
It truly has been a humbling honour to work with them, especially as we were recently tasked with updating the course materials.
It was during one of those meetings that the line from the title of this post was uttered, and then repeated.
That’s when I knew this would become a blog post.
An Evolving Vocabulary and Using the Right Words
The members of FFI are mostly advisors who work with enterprising families, and they enroll in the GEN program to learn from others, so using the right terminology is part of the deal.
Personally, I’ve tried to shy away from using the term “succession”, in favour of “continuity”, but most people still use succession, especially with the popularity of the TV series Succession these days.
So when Kirby blurted out “Succession without governance equals chaos”, who was I to debate her words?
And then later when Dennis reprised her words, verbatim, that was it, I had my money quote.
It does kind of summarize a lot, especially in only five words.
So What Do We Mean by Governance?
I’ve long known that the term “governance”, especially when related to a family, can elicit groans, skepticism, and a general “allergic reaction” from many, if not most.
I normally try to soften things by adding that family governance essentially boils down to 3 questions:
- How are we going to make decisions together?
- How are we going to communicate?
- How are we going to solve problems together?
I still talk about those, but today I want to add some meat to those, because they sound just a bit too simple and theoretical when you get right down to it.
Those “how” questions lead to a need for further clarification, around other questions that start with “who”, “when”, and “where” that typically get lost in the shuffle until it comes time to implement the governance.
What About the Chaos, and How Do You Avoid It?
Now the idea that “chaos” results from ignoring governance as an intergenerational succession approaches is one that some may doubt.
Well, if you want to tempt fate, “stick around and find out”, to borrow from a recent meme (a cleaner version of FAFO – see Urban Dictionary).
The basic questions posed above won’t answer themselves, and are best discussed:
- well in advance of any issues,
- in as collegial an environment as possible, and
- with as many members of both generations as you are able to involve
Regular, Repeating Meetings to Discuss and Agree
The secret, if there is one, is to begin having a series of regular meetings, where, slowly but surely, you begin to learn to work together to find the answers to those questions.
You can’t be in a hurry to finish, because you will never finish. You’re playing the infinite game, it’s all journey, with no destination.
This can be hard for many to grasp, but that attitude is necessary to develop, and it can be contagious.
There won’t likely be any single memorable meeting, just many small decisions, made together, over time, that’ll enable your family to succeed with your succession, without the chaos.
Because succession without governance does equal chaos.
