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Getting Brothers on the Same Page

Getting Brothers on the Same Page

This week, I was approached by a colleague about a pair of brothers, who are operating a business together, who are approaching a crossroads. My colleague asked me for some input on what kinds of issues they would be facing, and how he might offer to assist them.

(This made me flash back to a blog from April 2014, about another pair of brothers who worked together).

He didn’t give me too much to go on, and I’m not even sure how much information he had himself, so I will have to fill in some of the blanks with my own assumptions. This is fine because anything I offer here cannot be prescriptive, nor should it be overly directed to the specific facts of their case.

So here is a scenario, including my assumed facts:

Two brothers, in their late 50’s, co-own their company, which they have grown over the past 30 years or so. Both have children, but they are too young to take over right now. “Frank” has a vision of somehow keeping the business in the family, while “Sam” just wants to sell.

As usual, I have many more questions to ask before being able to supply any useful answers. Here are a few that come to mind immediately:

– Are these paths mutually exclusive?

Not necessarily. If Frank has an interest in staying on and eventually bringing his kids into the business, there are certainly ways that this can be done. If Sam wants out, they would need to come to a negotiated agreement on the sale price, including the terms and conditions, which would allow Frank to buy his brother out.

Frank would need to be sure that the leadership and management roles that Sam had assumed would be covered off by someone, and they would need to come up with a financing arrangement that would allow Frank to purchase Sam’s shares over time so as not to put the company at risk.

–  Can the business be run by a non-family member?

If Frank is not the type to run the business by himself and if it will be a number of years before his kids would be ready to assume key roles, the option of hiring professional outside management can also be an interesting idea.

Not all family businesses pass directly from parent to child; often some trusted managers assume top roles for a number of years while the next generation completes their years of preparation to take over the top job.

–  Has an outside buyer been identified?

If an outside purchaser has been identified, a sale of the business, whereby both brothers actually cash out, could be a blessing in disguise. Sam can close the book and move on, and Frank would be free to do as he saw fit with his proceeds.

–  Could Frank help his kid(s) run another business?

Some parents love running a business and long for a relationship with their children in which they can pass on that love to their offspring. But many times the particular business of the parents is not in a field that captures the imagination of their kids.

How about taking the proceeds and finding a business opportunity in a field that the children are attracted to, and helping them start their own business in that area?

–  Where should the brothers begin?

Ideally, Frank and Sam can discuss all of these options before going too far down the road with any particular option.

–  Beware the advisor who only carries a hammer!

Too often, guys like Frank and Sam are not sure where to turn, and they take the first piece of advice that comes their way if it sounds plausible. Remember the saying about a man who only has a hammer, who looks at everything as if it is a nail?

Business advisors, most of whom specialize in one particular area, are also prone to this type of reflexive advice. For big decisions like these, taking the time to look at ALL of the options makes the most sense.

 

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There Is No “Rewind” Button

Those Hollywood movies that involve the ability to go back or forward in time rarely catch my interest, to the point where I would be hard pressed to name one and say anything good about it. Whether it be a romantic comedy or a sci-fi thriller, I just cannot suspend my disbelief long enough to make it work in my head.

In the same way, if you ask me the proverbial “if you could do it all over again” question, you would probably have to push me pretty hard to get me to say anything besides “I wouldn’t change anything”.

When it comes to looking to the future, I must admit that I have a tendency to start to plan a few steps ahead of everyone else, and it drives my wife crazy. It isn’t always easy to “stay present”, but when you think about, that’s where everything happens.

The title of this post refers to an expression that I often use when talking to families about where they are, and how they got there. Some members have difficulty letting go of their feelings about past events, when someone else “wronged” them.

If we did have that Hollywood “Rewind” button, things would be so much simpler, right? You could just press the button and that stupid thing you said, that accident that you had, that decision that you made a bit too quickly, could all be erased, and you could go back and make things better.

I have not found that button anywhere, and I don’t think anyone outside of Hollywood has either.

One of the problems with dwelling on the past is that it often allows old feelings to stay with you well beyond the point where they are useful or helpful to you. This happens way too frequently with people in a family business, whether it is between siblings, or among members of different generations.

Let me address this issue of “useful” and “helpful” a bit more. If someone says something or does something that you don’t like, it is can be very helpful to remember it in the short term, because your immediate response and reaction should keep these recent events in mind, for your own good.

But twenty years after your sister said something off the cuff that was meant as a joke, you may want to cut her a bit of slack if she has otherwise not been mean to you. (If she could hit “rewind”, knowing how much it hurt you, she just might.)

Many years ago, Dad may have told someone that he did not think you had what it takes to follow in his footsteps, and maybe you weren’t even supposed to hear it. Letting that affect you and hold you back ten years later is not very helpful. If you have been making great progress, and even if he never complimented you on it, well, that just might be his style and his way of keeping you hungry.

Too many business families get “stuck” and have trouble moving forward because some family members are still dwelling on things that happened many years in the past. These people often tend to blame others for their misfortunes, and think about how “if only” something else had taken place, they would be much happier today.

There is no Rewind button. You can’t go back and change the past. Sorry, this ain’t Hollywood.

So what can you do? Today really is the first day of the rest of your life, and only you can make the rest of it better. If you can start to change your attitude, and focus on how you can help yourself TODAY, you can start to move in the right direction, day by day.

And please don’t start looking for the Fast-Forward button, because that doesn’t exist either.

(I will tackle the Fast Forward button in next week’s blog.)

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Successful Planning: Who Should Be Involved?

“If you fail to plan, you are planning to fail!”

Benjamin Franklin

In no way am I claiming to be smarter than Ben Franklin, but I will take his quote one step further. Franklin was right that planning is very important, but more needs to be added. After all, he died almost 225 years ago.

In the realm of multi-generational family planning, for business families or families of even moderate wealth, it is very important to make sure that you have the right people at the table when it comes time to make the plans.

Let’s look at another great quote (author unknown) that is also very profound. I will give you the backstory in a second.

“Plans that are about us, but don’t include us, are not for us”.

This is a quote that I got from Matt Wesley, a man who I consider to be one of the gurus in helping families with the dynamics of their legacy planning work.

I first heard Matt mention this quote a few months ago during a teleconference presentation for the Purposeful Planning Institute. Then, a few weeks ago while he was co-presenting on another PPI call, an audience member quoted it back to him during the Q & A session.

He thanked the participant and then added a bit more context for those who had missed the original citation. It comes from New Orleans in 2005, post Katrina.

He told us that he got the quote from the work of Margaret Wheatley, who was examining the disaster of Hurricane Katrina. Actually, it was a series of disasters, starting with the hurricane, but then also the fallout from the government’s response, which for many people ended up making things worse instead of better.

So where did Wheatley get the quote? It was spray-painted on the outside of one of the flood-ravaged houses in New Orleans. The disaster of the government response stemmed largely from the fact that they were dictating what would be done, without consulting the people for whom it was to be done.

Anyone can make plans, but you will only know how good your plans are once you get to the implementation stage. If things fall apart then, it may have been due to poor implementation, but then, shouldn’t the implementation have been part of the planning too?

If you are planning how you will help people after a flood, you might want to ask them what they need.

If you are planning what assets you are going to leave to your children, and how they are supposed to work together to manage those assets, you just may want to get them involved during the planning.

Here are some common planning approaches:

  1. Parents and advisors make the plans, children find out after death.

Not great, usually pretty bad, family harmony is an afterthought, plenty of disappointment and lack of preparedness to go around.

  1. Parents and advisors make the plans, and inform the children of the plans as a “fait accompli”.

A little bit better, but only slightly. If the siblings get along alright, hopefully they can work through the details and still want to get together as one big happy family over the holidays every year.

  1. Parents and children (actually former children, now adults!) work together on plans, and decisions are made in the best interests of the entire family. Once they know what they want to accomplish, they THEN engage the advisors to fine-tune the details of HOW they will write it up.

Actually, I said that these were common approaches. The last one is easily the best, but it is not yet common enough.

Hopefully, we are getting closer to the point where parents are satisfied that they have done a good enough job as parents to allow their offspring to have some say in their destiny.

The old “it’s MY money, so I will decide what I am going to do with it” seems so 20th century to me.

 

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Martin Luther King – Family Business Sage?

This past week it was Martin Luther King Day in the US. This prompted a number of comments and mentions on social media, some of which were very educational and enlightening.

I am always on the lookout for blog inspirations, but this one caught me by surprise. I know that Martin Luther King made lots of inspiring speeches and was instrumental in moving race relations forward in the US, even if a lot of work remains to be done.

What I had never expected was to read one of his quotes and instantly have an “A-Ha” moment relating to family business, or, more importantly, business families.

Here is what someone tweeted last Monday, along with a photo of MLK:

“We must learn to live together as brothers or we will perish together as fools”.

I talk a lot about the importance of creating harmony within families, and it seems to me that his words “learning to live together as brothers” was intended to conjur up images of the prototypical “one big happy family”, even if such families are not really as common as one would hope.

The assumption is that within a family, strong bonds, based on brotherly love, should help everyone want to work together to remain a strong family. When one family member is sick or weak, the others pitch in, because they are family, and eventually they may need help and will expect the same.

Many business families take advantage of this “familiness” and use it to benefit not only their family, but also their business. Telling the world that your company is a “Family Company” seems to be “in” lately, and of course I applaud this concept.

But what about the second part of Dr. King’s quote? What is he getting at with “perish together as fools”? My guess is that with respect to the American people and the variety of different races represented within, if this great country were to be torn apart because they could not learn to get along, very few others would pity them.

When you live in what many believe is one of the greatest countries in the world, if you fall off your perch, few will feel sorry for you. In fact, they will likely look at you with derision, and assume that you must have been fools to “blow it”.

And what about business families, and their cousins, families of wealth (for lack of a better term)?

Are there any well known families that you know of where you are, who have been around for at least a couple of generations? When do you hear or read about them? Sometimes, it is when they do something good, like giving to a philanthropic cause. These types of news stories have a very short news cycle.

But what about family feuds, lawsuits, siblings suing each other, family vs. family court cases? They are often fascinating, like a car accident that you just cannot look away from. And they can go on for months and years.

What do we think about when we think about the members of those families? Fools? Why couldn’t they just “live together as brothers”?

When you “perish together as fools” there will be plenty of finger-pointing, happy lawyers on both sides, and enough fractured relationships to last a few generations in your family.

Not many people will feel sorry for you, because you were lucky enough to get to that high perch first.

Please try to put a bit more effort into the “living together as brothers” part of the quote. It will be well worth it.

When things start to go badly between family members, they rarely get better on their own. It takes work, and usually a neutral outsider, to help get things going in the right direction, to help create the harmony you need, to support the legacy you want.

Or you can choose to perish together as fools. It’s your choice.

 

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University Case Competition: Family Business Style

Last week the place to be was Burlington, Vermont.  I happened to be right in the thick of it for the first couple of days, and my experience was nothing but positive. So what was going on there that was so special?

For the third year in a row, the University of Vermont hosted the Global Family Enterprise Case Competition (#FECC15) at the Burlington Hilton and on their beautiful campus. It is the only competiton of its kind on the planet.

When they say “global”, they are not kidding either. While about half of the teams came from North America (including 4 from Canada and 2 from Mexico) there were competitors on hand from Europe, South America, Malaysia, Saudi Arabia and the UK, and I may have missed some.  Sixteen schools sent Undergraduate teams, and eight schools were represented in the Graduate league.

I have seen many business cases over the years, dozens during my undergrad and hundreds while doing my MBA, but I never read any cases like the ones used in this competition.  I was lucky enough to be a judge on the first two days, and I can say that the cases that the students had to present solutions for were like no business cases I had ever even imagined reading.

The competitors had a full seven days to prepare the first case, so they all had plenty of time to figure out what they were going to propose, how the were going to structure their presentations, and which teammates would be responsible for which sections.

The second and third cases, as well as the final on Saturday, were set up so that each team of three students would only have 4 hours from the time they received the case to the time they were required to present their viewpoints to a panel of “esteemed” judges.

But let me get back to the cases, because it can’t really be a family enterprise case competition if the cases are not situations that only a real family business would face.  I was only privy to the first two cases, but they were both fantastic examples of what successful family businesses face as they go from one generation of managers and owners to the next.

The first case was about a third-generation (G3) family who had been trying to write their family constitution for a few years already, without success, despite hiring a few consultants to help guide them. The four teams in the division that I was judging all came at their solutions in a different way.  Not only that, but each team brought up at least one issue that none of the other three had mentioned.

On day two, the teams were now faced with the time crunch of only having 4 hours to prepare, from the time they received the case until they had to begin their presentation.  But despite the fact that they had very little time, the solutions that I got to see and hear were quite remarkable.

This case involved a group of G4 siblings who were worried that their children (G5) were not showing enough interest in getting involved in the business. During the judges preparation meeting, I pointed out that the average age of the judges was likely close to the ages of the G4’s in the case, while the ages of the G5’s in the case was close to that of the competitors whose solutions we would be hearing.

It was a fantastic experience for me, as well as the judges that I worked with; I can only imagine how great the week was for those who came to compete.

The undergrad finalists included 3 Canadian schools and one from Chile, with Carleton U’s Sprott School of Business taking top spot in the final round over Dalhousie.  The winners of the Graduate section were from Jonkoping Unviversity of Sweden

I hope to take part again next year, at the 4th Annual FECC, in January, 2016.

 

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Family Business Advising: Art vs. Science

The professionals who provide services to family businesses come from a variety of fields, but even so, most of them have a lot in common. Whether they are accountants, lawyers, tax specialists, wealth managers or insurance specialists, they typically deal with business and financial issues.

If we are talking about family businesses, why aren’t there any who deal with the family? The truth is that there are some people who specialize in the family circle, but not nearly as many professionals who advise the business and ownership circles.

The field of family business advising as a sub-specialty of business advising is relatively new, but it is growing and slowly being recognized as an important area. Most people can quickly see that there are lots of business issues that affect the family, but fewer have actually thought about the fact that there are family issues that affect the business too.

The people whose serve the family side of things more than the business side have a number of obstacles to overcome; let’s look at some of them, in no particular order.

Content vs Process

A lawyer will prepare a shareholders agreement, an accountant will prepare a set of financial statements and a wealth manager will make an investment for you. They are all discrete transactions, all of them are tangible; each is one piece of content.

Facilitating family meetings, mediating a dispute between siblings, or helping bring a family together to work on their values, vision and goals, for their part, are more process related. These functions can be very important for long-term family business success, and as such, they are often longer term in nature.

Transaction vs Relationship

The content pieces I mentioned above are typically done as separate transactions. Yes, relationships are also important to work on for accountants and lawyers, but in the family realm, it is almost all about the relationship, and the advisor needs to develop a good working relationship with everyone, not just the person who signs the cheques.

Soft vs Hard

Some people like to talk about hard skills versus soft skills, and I suppose that is one way of looking at it, but let’s not forget that the “soft” stuff is often actually much HARDER to deal with. Few of those who work on the transactions are trained to deal with these soft issues, and many families don’t want to talk about their family problems with those who charge them several hundred dollars an hour.

Business is about $$$ vs Family is about Love

Business is usually very much about making money and creating wealth, while family is all about love. It is the head versus the heart, and they do not necessarily always agree.

The advisor who can show you how his tax strategy can save you $XX,000.00 has an easier sale than the one who tells you that he can help make sure that your family has conflict-free Thanksgiving dinners in the future. How much is that worth?

Art vs Science

What it comes down to in many ways is that it is an art to deal with the family, while dealing with the business is more of a science. To be a good family business advisor, you need to be able to bridge both of these, art AND science.

There are some family therapists who help families deal with conflict, but very few of them understand anything about business, so it is hard for them to provide that bridge.

I have come up with an analogy, but I am not sure how good it is, but here goes.

Paint-by-Numbers

When I was a kid, I did a few paint by numbers, and while it felt like I was an artist, I was just filling in spaces with pre-decided colours of paint, which is more like science.

We need to be able to show our client families the canvas with the outlines of what we can do, and tell them what colour we can help them put in which spaces. This way, they will better understand what we can do for them, in a way that helps them see the value we can bring.

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Did You Hear the One About the Family Business That…

I spent three days in Vancouver this week at the CAFÉ Symposium, along with a couple of hundred like-minded family business types. The Canadian Association of Family Enterprises (CAFÉ for short) has been running their symposium every 2 years, but they are now going to make it an annual event, starting next spring in Toronto.

So what happens at these events? I’m glad you asked.

Wednesday started with an optional factory tour that was hard to resist, since we got to see the inner workings of a chocolate factory. I had the pleasure of being in the plant tour group that was lead by the patriarch of the company, and I had flashbacks of my own father showing off his shop a few decades ago, seeing the pride a builder exhibits when showing off the operations of his business.

The remainder of the program was a combination of keynote speeches, workshops, an awards dinner, and my favourite part, the “Business Family Story” discussions, along with their Q & A sessions.

I love to hear stories about families who are in business together because they are all so different and we can always learn something new. The first family that we heard from was a media company, founded by a man who eventually brought his daughters into the business, including one who was recently named president.

Afterward, the father-daughter team who run the chocolatier came up and told the story of their business, and how they dealt with their succession and how the daughter purchased the company from him over several years.

The next day featured a family in the hospitality industry that was even more fascinating. Dad was in his 70’s and chairman of the board, and all four of his children were in key positions, including the oldest son who is President. This is not that rare of course, but the fact the he had promoted his son to the presidency at the age of 22 did have some in the audience shaking their heads.

On the last day, 2 cousins took the stage to tell the story of their business family’s journey from great-grandpa in the mining business, and his company that was passed down to grandpa, now owned by 3 siblings in the third generation (G3).

The two members of G4 talked about how they are working on the ways that several members of G4 will eventually take over the family assets, as they have recently shown their ability to take over and run the family foundation. They are also looking at how members of G5 can begin to play important roles.

The open exchange of what families have done, what else they tried, what worked and what didn’t, and the sharing of their trials and tribulations, along with their successes, was not only fascinating, but inspiring.

There was plenty of teaching and learning going on over the three days, and I left feeling like many business families are finding excellent ways of dealing with the issues that make family business so interesting and challenging at the same time, thanks in part to the help of CAFÉ.

I also got to meet several other advisors who are graduates of the Family Enterprise Advisor program. Since the program originated at UBC, there are so many more FEA alumni in Vancouver. I mentioned that all of the FEA certificants from Quebec got together for a meeting recently, but that unfortunately that included only me from the 2013 Toronto cohort having lunch with Joe Havas from 2012.

This also reminded me of my, Dad who used to say that he had held a board meeting earlier that morning, while in the shower, alone. Family businesses still seem to be reluctant to appoint outside boards of directors, but thankfully more and more are seeking the help of qualified and experienced outside advisors.

I will certainly be at the CAFÉ Annual Symposium in Toronto in 2015.

Steve Legler “gets” business families.
 
He understands the issues that families face, as well as how each family member sees things from their own viewpoint.
 
He specializes in helping business families navigate the difficult areas where the family and the business overlap, by listening to each person’s concerns and ideas.  He then helps the family work together to bridge gaps by building common goals, based on their shared values and vision.
 
His background in family business, his experience running his own family office, along with his education and training in coaching, facilitation, and mediation, make him uniquely suited to the role of advising business families and families of wealth.
 
He is the author of Shift your Family Business (2014), he received his MBA from the Richard  Ivey School of Business (UWO, 1991), is a CFA Charterholder (CFA Institute, 2002), a Family Enterprise Advisor (IFEA 2014), and has received the ACFBA and CFWA accreditations (Family Firm Institute 2014-2015).
 
He prides himself on his ability to help families create the harmony they need to support the legacy they want. To learn how, start by signing up for his monthly newsletter and weekly blogs here.
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Communication is a Two-Way Street

Communication is a topic that comes up often when discussing what family businesses need to work on. With ubiquitous communication technology today, you would think that a subject like communication would have ceased to be an issue, after all, everyone is always reachable, right? If only it were so easy.

In a business family, one problem that is difficult to address is communication that only goes in one direction, from the top, down. After all, if the parents raised their children by simply telling them what to do, why would anything be different when they are at work together?

One of the issues with that style is that when messages only travel in one direction, they sometimes begin to fall on deaf ears. The biggest problem with communication, as they say, is the illusion that it has taken place. That is difficult enough to deal with in the best of situations, but when it happens because the speaker is being tuned out, it is a symptom of much bigger problems.

I know that in my situation with my father, things evolved over time with respect to communication flow. I truly believe that he, like many parents, wanted to listen to what his kids had to say, but just took a long time to realize that what we had to say was not only valid and pertinent, but that it was in the interest of the whole family to work together in a more collaborative fashion.

I do not like being told what to do, and I think most people feel the same way. Management styles have thankfully evolved a great deal, and the autocratic way of yelling at people just seems like such a throwback these days.

But while you can suggest to people that is is more important to listen to others than to speak, that doesn’t mean they are all going to suddenly start doing so. Learning to truly listen takes a lot of practice, but it can be learned. Some people just seem to take longer to understand that they should listen to others.

A family business is a tricky environment due to the intersection of the family and the business, and unfortunately some old-fashioned parenting styles and management styles still linger. Most parents in the older generation eventually see the light, but others never do, to the point of devising ways to continue to control things, even from the grave.

These situations can be very frustrating for the next generation successors to deal with. It can be helpful in these situations for the siblings to get together and begin to work on their own communication, in the belief that they will most likely outlive their parents and therefore will eventually need to get along without the senior generation’s help or interference.

Sometimes brothers and sisters begin to meet, get along better and develop a consensus for how things will eventually be handled after their parents have passed away. Sometimes the parents become intrigued when they hear of these meetings, and ask to be invited to join.

I could not end this blog without mentioning Stephen R. Covey’s The 7 Habits of Highly Effective People, which I read many years ago. My favourite habit, and one that some have called his greatest quote:

Habit 5: “Seek First to Understand, Then to Be Understood.”

If you can make that a habit, you have no choice but to listen more intently. If others are having difficulty doing so, the more they see you model this behaviour, the more likely they will eventually catch on as well.

It is certainly worth the effort. Then, if you can not only listen, but also learn to listen without judgment, you will see that you are really on to something, but that is a subject for another blog.

Steve Legler “gets” business families.
 
He understands the issues that families face, as well as how each family member sees things from their own viewpoint.
 
He specializes in helping business families navigate the difficult areas where the family and the business overlap, by listening to each person’s concerns and ideas.  He then helps the family work together to bridge gaps by building common goals, based on their shared values and vision.
 
His background in family business, his experience running his own family office, along with his education and training in coaching, facilitation, and mediation, make him uniquely suited to the role of advising business families and families of wealth.
 
He is the author of Shift your Family Business (2014), he received his MBA from the Richard  Ivey School of Business (UWO, 1991), is a CFA Charterholder (CFA Institute, 2002), a Family Enterprise Advisor (IFEA 2014), and has received the ACFBA and CFWA accreditations (Family Firm Institute 2014-2015).
 
He prides himself on his ability to help families create the harmony they need to support the legacy they want. To learn how, start by signing up for his monthly newsletter and weekly blogs here.
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Flex Your Flexibility

As we age, it is widely accepted that we lose a lot of our flexibility, especially when we look at our physical selves. Stretching is far more important for older folks than it is for kids, and there are good reasons why yoga and pilates are so popular with the grey-haired crowd.

But the kind of flexibility that I want to talk about today has little to do with our physical being, and everything to do with an attitude towards things that happen on a regular basis in our lives. I have not seen a lot written on this subject, so I wanted to throw some of my ideas out there.

Let me start with where this flexibility kick began for me, last year, as I was forming the idea behind my first book, on which I continue to work (update: manuscript just back from its first edit, working on a few modifications). The title of the book is SHIFT your Family Business, and the letters in “shift” are capitalized because they each stand for one of the five steps in my “call to action”.

If you are playing along at home, you have likely already guessed that the F stands for Flexibility.

The goal of the book is to get business families to begin to concentrate more on the family side of things, and slightly less on the business side. After getting Started, finding Help, and Investing time, we come to the chapter about staying Flexible, and in many ways this is the key to success. But some people find it difficult.

Many heads of family businesses attribute a lot of their success to their vision and hard work to achieve that vision, and flexibility is sometimes anathema to them.

But when it comes time to start to plan how you want to set things up for the future of the company and the family, these people will almost surely need to adopt some flexibility to assure a continuity plan that everyone can and will buy into.

The person who has always had it in their head that a certain child will certainly be ready, willing, and able to take over from him, may just end up discovering that that child is not interested, is not competent, is not liked by key non-family employees, or is not able to get their siblings to agree with them.

The family that believes they have it all figured out needs to be ready to adapt when someone unexpectedly get sick or has an accident, and it becomes clear that it is shifting gears and rolling with the punches are important for survival.

I believe that many family business leaders are actually more flexible than they realize in the way that they operate their businesses. What I think many of them could use help with, is to be more flexible in how they look after the family side of things.

The key skill that they usually need to brush up on is communication, which is actually a two-way street. Often when you are at the top, you become accustomed to doing a lot of talking and very little listening, and it is in the listening that you learn.

When you are able to listen, while holding off the need to judge, you can really learn a lot, and some of what you learn may not fit with your preconceived views. This is where the flexibility comes in.

When guiding a family business, and a business family, it is often tempting to try to just lead and expect everyone to follow. But if you adopt a more flexible attitude and truly listen to your key people, you will have more success when it comes time to hand the reins over to the next generation. Things rarely work out exactly as you expect them to.

Steve Legler “gets” business families.
 
He understands the issues that families face, as well as how each family member sees things from their own viewpoint.
 
He specializes in helping business families navigate the difficult areas where the family and the business overlap, by listening to each person’s concerns and ideas.  He then helps the family work together to bridge gaps by building common goals, based on their shared values and vision.
 
His background in family business, his experience running his own family office, along with his education and training in coaching, facilitation, and mediation, make him uniquely suited to the role of advising business families and families of wealth.
 
He is the author of Shift your Family Business (2014), he received his MBA from the Richard  Ivey School of Business (UWO, 1991), is a CFA Charterholder (CFA Institute, 2002), a Family Enterprise Advisor (IFEA 2014), and has received the ACFBA and CFWA accreditations (Family Firm Institute 2014-2015).
 
He prides himself on his ability to help families create the harmony they need to support the legacy they want. To learn how, start by signing up for his monthly newsletter and weekly blogs here.
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Oh Brother! Siblings in the Family Business

Many of the family issues that business families face come from the relationships between different generations. After a certain number of years, the eventual changes that will be required to move the business from one generation of leadership to the next, just become inevitable.

But in some families, where siblings work together, the intra-generational issues come to the forefront, and become the focal point for long periods of time. When you think about it, two family members from different generations might work together for two or three decades, but two siblings may be working together for four or five.

I thought about this subject this week, when I had lunch with two brothers, who have been working together for as long as I have known them, and that’s about 25 years. I will call them Jack and Ron, and they run a family business unlike any other that I know.

I am not talking about the industry that they are in, but the way their business seems like a true family business, in the way the two brothers have made the company their life’s work, and the way they complement each other in terms of skill sets.

The other thing that sets them apart is the fact that neither of them has any children, so there is no succeeding generation. They started this business without any direct help from their parents, have run it togther for some forty years, but there are no obvious heirs to whom they can pass their assets.

I don’t know any other single-generation sibling partnerships, but these two brothers work really well together, have amassed a number of assets by watching every dollar they spend, and finding great value in a variety of places.

They have numerous real estate holdings all over the city, and they can tell you stories about deadbeat tenants for hours on end.

Jack is five years older than Ron, but I had to ask them who was the older brother. Ron is more of a tinkerer, fixing machines and seemingly making something out of nothing, while Jack is the legal expert, and knows his way around the legal system better than most lawyers. I guess that when you have tenants who don’t pay their rent, you end up learning about the legal system pretty quickly.

But this blog is about family business, and I have known these guys for quite a while, and I felt compelled to write about them because even though they are not your run-of-the-mill multi-generational company, they do exhibit something that I find truly inspiring when I watch them work together.

Their parents were always very important to them, even though they were not involved in the business. And their parents clearly did a great job in instilling the right attitude in their sons.

There does not seem to be any jealousy between Jack and Ron, any ill will or desire to seem superior in any way. They work together the way any parent would be proud to see their children work together. Maybe if they had children following in their footsteps it would be different.

They have their own challenges due to their situation, though. With no heirs, it will probably be a charitable foundation that ends up owning most of the assets down the road, but that needs to be set up, and many decisions and steps need to be taken to make sure that happens, and will be handled the way they want.

I have no doubt that they will make all their decisions together, without much fuss, since they have been getting along so well together for as long as I have known them.

Getting along with your family, and those that you work with, is pretty much one of the keys to happiness, isn’t it? Too many business families seem to forget this.

Steve Legler “gets” business families.
 
He understands the issues that families face, as well as how each family member sees things from their own viewpoint.
 
He specializes in helping business families navigate the difficult areas where the family and the business overlap, by listening to each person’s concerns and ideas.  He then helps the family work together to bridge gaps by building common goals, based on their shared values and vision.
 
His background in family business, his experience running his own family office, along with his education and training in coaching, facilitation, and mediation, make him uniquely suited to the role of advising business families and families of wealth.
 
He is the author of Shift your Family Business (2014), he received his MBA from the Richard  Ivey School of Business (UWO, 1991), is a CFA Charterholder (CFA Institute, 2002), a Family Enterprise Advisor (IFEA 2014), and has received the ACFBA and CFWA accreditations (Family Firm Institute 2014-2015).
 
He prides himself on his ability to help families create the harmony they need to support the legacy they want. To learn how, start by signing up for his monthly newsletter and weekly blogs here.
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