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The Dimmer Switch vs. the On/Off

The Dimmer Switch vs. the On/Off

This week I’m going to touch on a very big topic that I haven’t written nearly enough about. It’s also a subject that lots of families face, whether they have a business or not.

The idea came to me a couple of weeks ago while listening to the weekly teleconference of the Purposeful Planning Institute.

As I had stated in Huge Liquidity Events – Great News, Right?, there was going to be at least one other blog that came from that call.

The great nugget for this blog actually came from the Q & A at the end of the call. (Many Thanks to Matt Wesley of Merrill Lynch)

 

Having the “Money” Talk 

One of the call participants asked a question about helping their client families have the big talk about wealth.

You know how this goes. Wealthy parents talk to their advisors, the advisors strongly suggest that the parents begin to share information about their wealth with the kids, and the parents usually balk.

They understand that they should have the talk, but that doesn’t mean that they know how to do it.

 

The Dimmer Switch Analogy

The man who asked the question was looking for ways to help his clients begin the important stage of sharing information about the family’s wealth with their children.

The answer that came back was brilliant, and it is one that I plan on using. Parents often think about this “talk” as an all-or-nothing proposition. They shouldn’t!

It’s not a binary situation, where you go from complete “secrecy” to “full disclosure”.

It’s NOT a regular light switch, where the family was in the dark, and you flip the switch up and now everyone sees everything.

 

Time for your Pupils to Adjust

If you’ve ever gone to the movies during the day and you walk out into the daylight, you know that it takes time for your eyes to adjust.

In the same way, you really don’t want to “blind” your children with everything in one shot.

There is no need to quench their thirst for information with a firehose.

I like the dimmer switch analogy for a couple of reasons.

 

Shine a Little Light

I think the idea of “shining a little light” is the perfect antidote to the idea of “keeping them in the dark”.

And everyone knows what a dimmer switch is, and what it does. It allows you to control the amount of light.

So where should you begin?

 

Why Are We Here?

So let’s say you’ve decided that you can’t wait any longer and you need to talk about your wealth with the next generation of your family. Great. It’s not rocket science.

A frank and open way to get started is to tell them that you love them and that you care about them, now, and for the rest of their lives.

You could also share that you understand that if things go as they usually do, they will very likely outlive their parents, and that’s a good thing.

So, given that, there’s a lot of “stuff” that you have accumulated over the years and you need to begin to figure out what’s going to happen with it all after your gone.

 

One Step At a Time

The stage is now set. You have made them aware that you will be having some important discussions going forward.

And you control the dimmer switch, on both “how much” and “how fast” you’ll shed the light.

You don’t have to do it all today. Or even this week. Or this month. But preferably once you start, you do continue again sometime this year.

They may ask questions. That’s a good thing. You need to respond to all of their questions, but that doesn’t mean that you have to tell them everything they want to know.

Take your time. Turn that dimmer switch very slowly. But do turn it. And don’t turn it back the other way, although I’m not even sure if you can turn this metaphorical dimmer switch back towards darkness.

 

Dialogue > Monologue

You may have pictured yourself giving your family a speech about this subject. I strongly urge you NOT to look at it this way, or to act this way.

The “go slow” approach works well because you can adjust as you go. A dialogue, where you take the time to listen to their questions and concerns, is what you should be going for here.

 

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Ownership: The Forgotten Circle of Family Business

Ownership: The Forgotten Circle of Family Business

On the back of my business card, I’ve got a colourful depiction of the Three-Circle-Model that I often use to initiate introductory discussions about the kind of work I do.

Not that it takes long to draw the Venn diagram on a napkin, pad, or placemat, but since I was struck by its simplicity when I was first exposed to it, I now enjoy sharing the insights it can bring.

 

History Lesson

Harvard’s Renato Tagiuri and John A. Davis came up with the model in the 1980’s when they realized that the old “Two-Circle” version was incomplete.

It was always clear that the Family and the Business overlapped, but it was the addition of the Ownership circle that added an “A-Ha” factor.

 

In Flux Versus Static

Interestingly, while the Family and the Business are both pretty much in constant daily flux, the Ownership is usually static or fixed for decades at a time.

But when the time does come to make changes to the ownership of a family business (and it will), those changes usually affect pretty much everything and everybody.

So the term “forgotten” in the title of this blog, is meant to make the point that we don’t usually give it much thought.

But maybe we should.

 

Some Examples

Imagine a family where the senior generation still owns the business while the rising generation members have solidified their place in the day-to-day operations.

At first they will likely patiently bide their time and accept the situation and “obey” the owners’ directives. But as the years become decades, this situation can become much less palatable.

The issues that arise in this type of situation are often framed in terms of “family dynamics”, which isn’t necessarily wrong, but the best solution to the “problem” may actually come from a change to the ownership.

 

Voting Control

Sometimes families realize that ownership should transfer to the rising generation relatively early on, which often occurs at the behest of an outside expert who suggests some beneficial tax-planning strategies for making these changes.

But often the parents can’t resist the temptation to create complex share structures that allow them to maintain control.

Having ownership without control adds a complicating factor to the Three-Circle-Model.

I’m not exactly sure how to do it, but somehow a modified version of the model might be needed to illustrate those situations where ownership doesn’t include control.

But all I’m trying to do here is to illustrate ways that the ownership circle often affects many of the day-to-day family business issues, even if we don’t give it enough thought.

 

Life Events as a Catalyst

Important life events can sometimes be a catalyst to changing the ownership structure. It’s much more fun when these involve a birth or marriage than a death or divorce.

Unexpected deaths sometimes catch families by surprise and hopefully these cases serve as a poignant reminder to others to get their affairs in order “just in case”.

When there’s a long illness that precedes a death, it’s sometimes a blessing, because important moves and discussions can then take place.

Of course in some cases, family relationships are such that even when the writing is on the wall and death is imminent, the family just can’t come together and have a productive discussion and agree on how the future ownership should be structured.

 

Preparing Owners to be Owners

Luckily, for every situation where families are “stuck”, we now hear more and more about families who are working to get out in front of these situations.

Enlightened families are looking into outside coaches and/or education programs that help prepare future owners to become good owners.

While it’s true that no special training is required to own shares in a company, the people who work in the business can tell you that the ownership of the business, and how they interact with and guide the company, has a huge effect on performance.

 

It Starts at the Top

When things begin to go poorly in a business, the roots of the demise can usually be traced back to the top, and that’s the ownership.

If you’re working with a business family and there are some issues that you’re trying to put your finger on as to their source, don’t forget to ask about the current ownership structure.

There’ll often be some good clues there.

 

Photo credit: Richard Legler

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A Pitcher, a Golfer, and a Baby Bird

A Pitcher, a Golfer, and a Baby Bird

Whenever I hear a really good analogy, something in my brain gets triggered, and I want to find ways to remember it, perfect it, and share it.

When people ask me how I come up with blog ideas every week (for over 250 weeks now, and counting) I usually note that the difficult part isn’t in having enough ideas, it’s having too many.

So when I hear the same analogy coming from two completely different areas, I take notice, and I try to find ways to combine them into one blog.

 

The Pitcher

Last week I was watching a Cubs game on TV, and Jake Arrieta was on the mound. The colour commentator was John Smoltz, a former pitcher himself, and a Hall of Famer too.

He was talking about issues Arrieta had been having with control, and Smoltz mentioned that he was working on finding the right grip on the ball in his hand as he threw his pitches.

“You’ve got to think of the baseball as if it’s a baby bird”, he said (I’m paraphrasing here) “You don’t want it to fly away, but you don’t want to squash it either”.

This sounded very familiar to me.

 

The Golfer

Years ago, when I still played golf (or rather “tried” to play golf) I was having issues with a really bad slice.

A slice is when you aim the ball at the green, and you hit it and for the first second that you watch it, you’re really happy, but then the ball just decides to take a right turn, often into the woods.

I don’t recall exactly where the advice I heard came from, but I absolutely remember reading or hearing the story about the bird.

“Think of the golf club like a baby bird, you don’t want it to fly away, but you don’t want to squash it to death either”.

 

Business Family > Family Business

So what the heck does all of this baby bird stuff have to do with family business? I’m glad you asked.

When people think about family business, they usually think about the business part of it. In the term “family business”, the word “business” is the noun.

My preference is to talk about the “business family”, where the word “family” is the noun.

I think I’ve been pretty consistent with this, as even the secondary title of my 2014 book, SHIFT your Family Business, is “Stop working on your Family Business, Start working on your Business Family”.

 

Parenting

When I meet with members of a business family, it usually doesn’t take very long for issues to come up that have a lot more to do with “parenting” than they do with “business”.

And it’s the parenting part that brings us back to the baby bird analogy. As a parent myself, I too have struggled with the temptation to grip the bird too hard.

As a former child, I can tell you that at times I felt like I was a little too “directed” in my life. Being “directed” is a close cousin of being “squashed”.

 

If you love someone…

It saddens me when I meet people in their 40’s or 50’s who work in their family business, and it becomes clear after a short time with them that they’re not really there because they want to be.

If they could hit the “rewind button”, they would have made different choices. Unfortunately, there is no “rewind button”.

These issues almost always stem from the baby bird being gripped too tightly.

Instead of just throwing more balls than strikes, or too many lost golf balls, the consequences are much worse.

 

Go Fly Now

When the baby bird is held in your hands for too long, it will never learn to fly on it’s own.

Even worse, when the time comes that the bird HAS TO fly, and it can’t, because it never got the opportunity to learn to fly on it’s own, parents will often criticize them for not having what it takes.

 

Too Loose > Too Tight

While you may think that it’s simply a matter of finding the right balance between gripping too loosely and gripping too tightly, that may be true for the golfer and the pitcher.

For the parent, gripping too tightly causes far more problems.

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Father’s Day Introspection 2017

That Time of Year

Every year when Father’s Day rolls around, I get mixed emotions. Being a father is truly the greatest joy of my life, and this weekend will be my 18th as a father, but also my 9th without my father.

When I work with members of a family, I like to help them see things from each other’s points of view, and asking them to project forward or backward many years comes naturally to me, stimulating conversation through curiosity.

Asking a father to think back to when he was at his son’s current age will naturally shift his viewpoint.

Likewise, having a son project to when he will be his Dad’s age and imagine what that could be like, forces him to adopt a different mindset.

 

My Own Journey

For the first few decades of my life, I only saw Father’s Day from one perspective.

When our son was born, I developed a new appreciation for the third Sunday in June, as I was now a father too. Having my father still around then, I got to experience the “dual roles” of son and father.

I didn’t get to enjoy too many of those, unfortunately, as my father was struck down too soon by cancer, so now I am back to only one way of experiencing this special day.

 

Father–Son Experiences

This past week I was in Halifax for the Family Enterprise Exchange’s (FEX) Symposium, where there were plenty of father-son teams and stories.

(There were of course mothers and daughters too, but this is my Father’s Day blog and I’m a guy, so please excuse the gender slant this week.)

Whether it was a father and son on the stage, recounting the evolution of their relationship, or members of a family at my table during one of the sessions, I couldn’t help comparing what I was seeing and hearing to my own experiences.

It felt like most of the relationships I witnessed were healthier and more open than the one I had with my father, and much closer to what I feel like I’m living with my son (and daughter).

 

Objectivity Problem?

I can’t be sure of my biases here, but I think I’m being pretty objective.

Were these isolated examples of great family relationships?

Was my view of them skewed by their efforts to show “good behaviour” in public?

Was it a sign of the times that younger generations have got the father-son relationship figured out better?

I can’t be sure, but I do know that the fact that my Dad and I were in a family business together certainly DID have an effect on our relationship.

 

“We’re Not Gonna Do That”

I shared a fundamental story of ours many times during the FEX Symposium, one that I wish had turned out differently.

In the mid 1980’s my Dad had joined CAFÉ (Canadian Association of Family Enterprise, forerunner of FEX) while I was completing my Bachelor of Commerce studies at McGill.

Those studies were part of what I understood to be my “duty” as his only son: to fulfill my “destiny” as his successor.

One day he told me that many of the advisors who had spoken at CAFÉ events were very much against the idea of hiring your kids right out of school and straight into the family business.

I recall looking at him with a hopeful twinkle in my eye (which he clearly didn’t read the way I had hoped), waiting for the next line.

At that point he put his hand on my shoulder and “reassured” me with, “But we’re not gonna do that!”

Once again, he decided for we.

 

Wait, Why Not?

My hope is that modern day sons would have the courage to say, “Wait, why not?”

I really wish that I had, and if my son were faced with such a situation, I hope he would too. But I don’t plan on ever putting him in that kind of situation.

And for any other father-son team experiencing this question, please resist the temptation to taking this short cut to working in the family business.

 

Worth the Wait

If it’s right, it’ll be even more right, later.

Let your kids become their own selves first, outside their parents’ shadows.

It is worth it for them, and it will be for the business too.

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My Beliefs on Family Legacy Advice

Class Assignment

(This week’s post is the slightly edited text of a class presentation that I made this week at the Bowen Center for the Study of the Family, at Georgetown University in Washington D.C. where I just completed my first year in their Post-Graduate Training Program.)

 

According to what it says on my business card, I’m a “Family Legacy Advisor”.

My beliefs, which I’ll share with you today, are very much about how I see that work, and how I’m becoming inextricably tied to it.

More and more, it’s becoming who I am, and not simply what I do.

Here are three of my foundational beliefs:

  • I believe that Family Harmony holds the Key to a Family’s Legacy
  • I believe it’s always worth making the effort to improve family harmony
  • I believe working on family harmony is a lot of work, and, it all starts with working on self

 

How did I get to this point? 

I had my calling 4 years ago, doing the course work in a program called Family Enterprise Advisor. 

There, we learned the three-circle model, Business, Family, and Ownership, with each circle representing a system.

It dawned on me that for the first 4-plus decades of my life, I’d been led to believe that the Business circle was the only one that mattered.

As my studies progressed, I soon began to understand that the Family circle was more important, and it was often neglected, and that I was naturally more attuned to the important work that often needs to be done in the family circle.

So, I began working on myself, with coaching training, mediation courses, and facilitation programs, including an entire suite of courses in a program called Third Party Neutral.

And of course I began training in Bowen Family SystemsTheory.

 

How has my Bowen work contributed?

Well, starting with two years in Vermont, in their program, and this year here in DC, my Bowen Theory work has helped me in a number of ways.

It has:

  • Sharpened my focus on the effort involved
  • Emphasized the work on self,
  • And continuously reminded me that this work is a never-ending pursuit

 

Challenges

My calling came along with a desire to “help” people and families to deal with issues that I myself had dealt with in my family.

My mistakes, my parents’ mistakes, and the ones that I discovered when I married into another business family, were all there as experience that I wanted to transfer into wisdom to be shared.

But as WE all understand, telling people what they should do doesn’t work so well, so transforming myself into someone who “does Bowen” was an idea that I thought would be useful.

 

Bowen Family Systems Theory

I’ve since discovered that you can’t just “do” Bowen, you actually have to sort of “be” Bowen. Not Dr. Bowen, but maybe be a “Bowenite”.

Learning a new way to “be” so that you can lead people, and model behavior for people, takes time, practice, and effort.

One huge challenge that I’m just now starting to comprehend is the difference between HELPING people and being a RESOURCE for people.

The difference sounds subtle, but it’s actually quite stark.

You can’t help people who don’t want to be helped, and trying to help them is quite often counter-productive.

 

Moving Forward

My way forward is to become a resource to people who want to improve their family harmony, and in order for me to “be” that resource, I need to continue to make the effort to understand myself.

My Bowen training has helped me understand many things in a new and improved way, and I feel like I’m miles ahead of where I was just a few short years ago.

But, my understanding of self, and my work on differentiation, feels like it has so much further to go.

 

Understanding Self and Others

As I understand myself better, I understand others better as well.

These efforts are worth it, for me, for my family, and for whichever families seek me out as a resource for their own work on harmony, as part of their desire to preserve their legacy.

And so I added one more belief:

I believe that I can actually help more families by acting as a resource to them, instead of trying to help them.

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We Treat Them All Equally – (That’s Good, Right?)

We Treat Them All Equally – (That’s Good, Right?)

Someone recently asked where I stand on whether or not parents should treat all their children equally. I definitely have some strong feelings on the subject, but before answering, I decided to check my 200-plus blogs to see what I had already written on the subject.

I was surprised and disappointed to note that I haven’t really treated this subject adequately in this space, so I decided to change that here and now.

 

For Simplicity’s Sake

Now I am NOT “anti-equality” by any means, and for simple and straightforward situations, it’s clearly the way to go.

However, most families I deal with are neither simple, nor straightforward, and on top of that the sheer size of their assets makes everything more complex.

While simplicity is good, when it’s possible, in complex situations, oversimplifying can cause unintended consequences. I daresay that many parents who blindly insist on equal treatment are just being lazy.

 

Ownership and Management

A major complicating factor that often arises in such families is the distinction between ownership of assets and their management. This is especially true where there is an operating business that constitutes the bulk of the family’s wealth.

The simplest illustration is a family with three children, only one of them working in the business, but ownership given to the three equally. The one managing the business will be in a difficult position, unless they have very understanding siblings (and in-laws!).

Running a business can be challenging enough without having to answer to co-owners whose knowledge about it, attachment to it, and efforts towards it do not match that of the person tasked with managing it.

 

Equitable Division

Rather than simply cutting the pie into equal pieces, I encourage families to shoot for an equitable solution. Synonyms for equitable include “fair”, “even-handed” and “egalitarian”.

You see, sometimes “equal” is not fair, when you look past the simplistic solution of just making everyone identical equal partners.

Parents who leave operating businesses to their children too often do not stop to think about the fact that they are forcing their kids to become business partners, and anyone who has ever had a business partner knows that a good partnership agreement is an absolute necessity. And even then…

Unfortunately, the idea that “Well, as partners, they will be forced to get along!” will backfire much more often than it will succeed, and is NOT a recommended strategy, ever. And it does still happen, unfortunately.

 

Transparency Versus Secrecy

Assuming you actually get the fact that a simple, equal division can often be sub-optimal, then what should you look to do instead?

The possibilities are as limitless as your imagination. But better still, how about including the stakeholders in a discussion and also benefitting from all their imaginations?

In fact, if all the siblings who’ll end up owning the assets together after their parents are gone are involved, and they knowingly agree to an equal split, after considering and discussing alternative scenarios, then equal actually is good.

If everything is decided in an open, fair, well-thought-out manner, with each person comfortable that they understand exactly what they are getting themselves into, then who can argue with that?

 

Worthwhile Discussions

Are these discussions quick and easy to have? Usually, NO.

Are they important and worthwhile to have? An unqualified YES.

Simplicity is good, but not if it is just the result of laziness and a lack of courage to have the discussions that are required.

Adult conversations between family members from different generations can be difficult, especially when so much is at stake. But what’s the alternative?

 

Keep Your Fingers Crossed

Many families have ended up deciding to ignore this type of advice, simply divided everything up equally, and let the chips fall where they may. “Well, that’ll be their problem, they’ll figure it out” is an interesting attitude.

If you really believe that they’ll “figure it out”, then you’re also probably the type who could have the necessary conversations, and you should.

If you say that, and are secretly keeping your fingers crossed that it’ll all work out, then you’re actually likely fooling yourself.

Good luck with that. Don’t say I didn’t warn you.

 

P.S.: What About Salaries?

If you’re paying all your kids the same salary, for vastly different job responsibilities, that’s a great place to start fixing things.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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An Offer He Can’t Refuse

This week contained a flashback for me. I was a guest speaker at a University business school, five hours down the highway. There I was, standing before a group of students getting ready to soon begin their careers, much like I was “just” 30 or so years ago.

Invited by two colleagues/friends who teach “Managing the family Enterprise”, I had sent along copies of my favourite book, SHIFT your Family Business, so that the students could be prepared to ask whatever they wanted of its author.

 

Lucky You!

I began by asking the students if they felt lucky (no, not because I was in their presence). To my surprise, heads began nodding, even before I shared my thoughts about why they were in fact quite lucky to be sitting where they were.

I related my story of being in their shoes in the 1980’s, getting ready to work in my family’s business, but doing so without the benefit of a single course related to Family Business.

This was no slight to my alma mater, it was more about the timeframe. I explained that the Family Firm Institute just celebrated its 30th year in 2016, and CAFÉ (Canadian Association of Family Enterprise) also had its 30th recently. This “field” is still quite new.

I also shared one of my favourite stories about my Dad, who had joined CAFÉ in those early years, and his reaction to the great advice he’d heard from the advisors at those earliest CAFÉ events.

It was quite à propos in this setting, as these were undergraduate business students, like I had been at the time, many preparing to join their family companies in the coming years.

 

“We’re not gonna do that”

“You know, these people at CAFÉ”, I related my Dad’s words, like it was yesterday, “they say that you shouldn’t hire your kids right out of school, you should make them get a ‘real’ job first”, he said, as I nodded, hopefully. “Well, we’re not gonna do that”, he continued, patting me on the shoulder.

For effect, I acted it out with a student in the front row.

I also added that not standing up to him and questioning him, and not suggesting that I would like to pursue that option, turned into one of my biggest regrets.

 

Case Study: Corleone Family

The class uses one family business case for the entire semester, and this year’s choice is the Corleone family, of Godfather fame. “Cool!” I thought, as I learned this fact during a call with one of the instructors a week prior.

I really enjoyed doing “my homework”, watching the movies over the weekend so I could contribute to class. I hadn’t seen them in decades, and had forgotten how Vito actually stepped aside, letting Michael take over decision-making without second-guessing him, well before his unfortunate demise.

 

Family Governance

This class also featured a group presentation on Family Governance, and I have to admit that I got a kick out of the fact that the team used a quote from my book on one of their Powerpoint slides, with attribution, and my name spelled correctly.

Last week I wrote about the Queen and Prince Charles, and now the Godfather, what’s next? (Hint: more on Family Governance).

 

Should Have Refused

Back to the title of this post, courtesy of Vito Corleone, likely recognizable to most readers.

The reason I use it here is to underscore that I now recognize that the key word in the sentence is “can’t”.

More and more these days, kids are in fact refusing their parents’ offers to join the family business. To me, that is a good thing.

I should have refused too, but I didn’t. It would have been better for me, and actually better for the whole family, but it did not fit the shorter-term plan of the patriarch.

 

Love of “Business” vs Love of “My Business”

In response to a question from the class, I suggested that I strongly support teaching the “NextGen” about “business”, and even to “love” business, as part of “financial literacy” and to pass along the entrepreneurial family spirit.

But loving “business” and loving “this particular business that Dad started” isn’t the same thing.

Imagine if Michael Corleone had been able to use his great skills in the truly legit ways he had hoped, without the family baggage…

 

 

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5 Things you Need to Know: Sibling Rivalry

Sibling Rivalry is a subject that has been around forever, yet despite that, it has somehow not been one that I have tackled in this space over the four-plus years I have been writing this blog.

Following my post “5 Things you Need to Know: Family Inheritance” from November, I have decided to return to that format and devote this week’s installment to Sibling Rivalry.

If you have suggestions for other topics that you would like to see me address here in this same format, please let me know, I love reader feedback and input, as well as a challenge. My idea is to have the “5 Things you Need to Know” become a semi-regular feature.

Without further ado, here are my…

 

5 Things to Know: Sibling Rivalry

  1. It’s “Built In”

Where there are siblings, there is potential for rivalry. Mom and Dad will usually try to minimize it, but truth be told, as soon as the second child is born, the rivalry is on.

In fact, depending on the age of the older sibling, the rivalry can begin as soon as they learn that Mommy is going to be delivering a new bundle of joy, that will undoubtedly compete with them for love and attention.

So if it is built in, the best we can do is to try to be aware of it, and understand what is going on so that we, as parents, can best deal with its fallout. Pretending that it doesn’t exist in OUR family is not very helpful.

 

  1. It brings out the WORST in people

If we think about sports rivalries involving our favourite team, we can often recall events that took place during games where opponents did things that are memorable for the wrong reasons.

There is an added layer of intensity when rivals meet, and sometimes people do things that they would never dream of doing in a similar circumstance but with different particpants.

For siblings who have been in competition with each other for many years, most of their interactions can be positive for years on end, but one never knows when something that has been festering beneath the surface will finally blow up.

 

  1. It brings out the BEST in people

Rivalries are usually based on some sort of competition, but what is actually at stake can vary greatly from sports trophies to love, power, and money.

But isn’t competition good? Actually, in many if not most cases, yes. And it is when the competition is healthy that it can do just that.

The trick is to get the conditions right for the competition, and hence the rivalry, to be “healthy”. All or nothing situations, fight-to-the-death scenarios, one-winner/many-loser set-ups are unnecessarily rivalrous.

Healthy competition is often set up as a Win-Win situation, in finding ways to make the proverbial pie bigger, in creating ways for each participant to excel in their own way, and having everyone contribute to the common good.

 

  1. Blame the parents!

In the previous point, I used words like “conditions”, “situations”, “scenarios”, and “set ups”, which relate to the context within which siblings can be exposed to rivalry with each other.

Who creates the context in which the family lives, if not the parents? When parents create conditions for rivalries to bring out the worst in their children, the parents should bear their share of the blame.

Sometimes it is done subconsciously, and other times because they think that they are doing what is best, but in truth, many unhealthy rivalries can be traced directly back to the parents.

 

  1. DON’T blame the parents!

Wait, what? Didn’t I just say the opposite? Well, yes, but just because the root of the rivalry can be blamed on the parents, that doesn’t mean that100% of it rests with them.

When the offspring become adults themselves, at some point they must assume responsibility for themselves and cannot forever blame Mommy and Daddy for “loving Johnny more”.

Where you are today is the result of everything that has happened to you in your life thus far, including the way your parents and siblings interacted with you.

Where you go from here depends on what you do starting today.

Sibling rivalries are all around us and are not necessarily bad or good.

If you are involved in one as a sibling or parent, what can you do to help make it “less bad”, or “more good”?

 

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Christmas Presence > Christmas Presents

I’m a big fan of clever wording, so as the holidays approached and I got the idea of “presence” for a blog post, I could not help myself, and absolutely had to make the point about the difference between “gifts” and “being there”.

When we are young, getting presents for Christmas can preoccupy our minds. As we get older, the question of just who is going to show up to celebrate the holidays with us becomes more important.

Between the stage of life where we wonder what Santa will bring us, and that where the number of grandchildren who will be there becomes key, the idea of presence shows up more often than you might think.

 

Listening and Presence

As someone who works with members of different generations in families, I can tell you that one thing that is often missing is good communication. Now do you suppose most of that is because people don’t speak well, or because their listening skills are deficient?

Learning to listen to people is more than simply making sure that your ears are tuned in to their voice. In fact, as much true listening happens with your eyes, and real listening even goes right to your heart.

Listening, especially to those family members for whom we spend so much time working hard to grow our business and wealth, is something most of us could work on and do better.

In order to listen with your ears, your eyes, and your heart, you really have to be present, with all of your senses tuned in. In the log run, the parents’ presence in the lives of their children is worth more than the presents they give them for Christmas and birthdays.

 

Finding your Gift

Speaking of presents in the form of “gifts”, this is another area where parents can be truly helpful to their offspring. I am talking here about the idea of each person finding their gift, i.e. what makes them special.

There are still far too many families where the leading generation sees their children more in terms of resources for their business, instead of a more traditional parental role of helping them find their way in the world, following their natural gifts and abilities.

 

Who is invited; Who shows up 

Many families spend a great deal of time preparing everyone for roles in the business, and not enough do the work to get everyone prepared for their roles in the family.

Family businesses usually have some basic governance in place to run their operations, but the family group itself can always benefit from some basic governance of its own.

It seems like more and more families are getting this message, and many are doing it the smart way and having an independent outsider take the lead in making sure that things are done the right way.

Figuring out whom to invite to family meetings can be tricky, and wondering what to do if some choose not to come to the meetings are issues that arise. Having someone who is not emotionally attached can help navigate these questions and get the necessary momentum started.

 

Being there > Sending a gift

Woody Allen said that 80% of success is showing up, and this can apply to many family situations too. If you don’t believe me, don’t go visit your mother for Christmas and just send a gift instead. Presence > Presents.

This brings up another Christmas related statement I like. People ask me how a family puts a value on the kind of work that I bring with my presence in their family processes.

One of my replies is that it is really hard to put a dollar figure on it. And I then add, “How do you put a value on Christmas visits, if one of your children shows up and decides to drive around for a bit until Uncle Bob has left.”

Everyone’s presence, for the parents, is the best present. I should not have to add that having everyone there simultaneously is assumed to be ideal, as opposed to showing up in shifts.

Family fortunes that fall apart are also a great gift, for the lawyers.

Be there, be present, listen, and communicate. Plan for the family, not just the business.

 

 

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Thanksgiving and Who Needs Whom More

Happy Thanksgiving, Canada

Sometimes these blog posts are inspired by the time of year, and so on this Canadian Thanksgiving weekend I will share some thoughts on gratitude.

But a whole post on being thankful is really not my style, so I will also try to tie in another idea that has been ruminating in my head lately.

Last year at this time, I came across a post on Twitter, the contents of which I have shared verbally with a number of people. It was from David Chilton, author of the Wealthy Barber. (If you ever have an opportunity to hear him speak, do yourself a favour and go).

 

Spotlight on Gratitude

He posted something along the lines of “If you are healthy and you live in Canada, every day is Thanksgiving”. Amen to that.

Gratitude is a subject that entire books have been devoted to, and I know many people who need to be reminded of just how good we have it sometimes.

We can easily slip into complaint mode too often, with what could best be described as “first world problems”.

 

Process vs Content, Process vs Event

Last week I wrote about process versus content (FamBiz Conflict: Resolve it or Manage it?) but there is another comparison with process that people in the family business and legacy space like to talk about too, and that’s process versus event. (see Striving for a Succession Non-Event)

My challenge is now to try to tie this in to the Thanksgiving theme in the hopes of adding some coherence to this post. Here goes.

 

Who Needs Whom More?

When you were born, you needed your parents more than they needed you. As you reach the end of your days, you will very likely need your children more than they need you.

There are exceptions of course, but please bear with me here. Life IS a journey, or a process, if you will. Somewhere along the way in life, the answer to the question “Who Needs Whom More” flips.

Your children need you more when they are young, you need your children more when you are old. But when does it flip? And does it “flip” quickly like a coin, or slowly, like turning around the proverbial oceanliner?

I daresay that it is much more of a process than an event.

 

You Reap what You Sow

When we were kids, my sisters and I were thankful for our parents, although I am not certain that we expressed it frequently enough. As they grew older, and we matured, I know that they became more thankful for us.

Ideally, gratitude is something that we learn from our parents, and then teach our children. Parenting, manners, how to behave, how we do things in our family; all are part of the legacy and heritage we pass along to following generations.

As any farmer will tell you, as you sow, so shall you reap.

 

Values versus Valuables

Family wealth succession can be very complex and involve lots of detailed transactions and documents concerning the family’s valuables.

But your true family legacy depends much more on passing on the values of your family.

I hope that gratitude is one of the values that my children have picked up from their parents, I know that I got most of my values from mine.

My kids are teenagers now, but I have been treating them as much as possible as if they are adults for a while now.

Trying not to tell them what to do, trying to make sure that “you’re not the boss of me” is not something that even remotely enters their minds.

 

Equals versus “One Up, One Down”

Am I doing this because I realize that someday I will need them more than they need me? Perhaps, subconsciously.

My point is that the longer it takes to turn around the answer to the “Who Needs Whom More” question, the better.

A relationship of equals, adult to adult, with nobody in the “one up” position, and nobody “one down” either.

 

It really never is “Too Late”

It’s never too late to try to make things better, and the outreach can come from either side.

This week I was reminded about the old saying that “the people you meet on the way up are the same ones you will meet on the way down”. I think it applies here too.

Please remember that, you will be thankful that you did.

 

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