One of my clients, a non-family CEO of a substantial family business, sometimes describes his own mindset toward business decisions in terms of scarcity and abundance. When he’s in scarcity mode, he finds himself thinking of a particular issue or transaction as a zero-sum game. He begins to hoard opportunities, to be defensive and paranoid about others’ motives. Recognizing his mindset, he has learned to stop himself and think instead in terms of abundance. By envisioning multiple mutually-positive potential outcomes—opportunities for win-win solutions—he finds he is more creative and more open to possibility.
Investing in Possibility: An IPS for Human Capital
Investment Policy Statements. Asset allocation. Portfolio reviews. Investors have developed sophisticated systems that enable them to choose among investment options and manage and track the performance of their Financial Capital. These systems enable investors to create detailed plans, identify opportunities and weaknesses, and monitor performance. But, what about Human Capital?
Succession Planning for the Founder's Family Office
For a Single Family Office led by its founder, succession planning is often the last thing on the founder’s mind. But failure to plan for the office’s scope and services after the founder’s demise can leave the family and the family office staff alike in an impossible situation, and put at risk the wealth that the founder worked so hard to create.
This comprehensive article provides thorough analysis and actionable recommendations addressing succession planning in single family offices.
A Matter of Trusts
“A Matter of Trusts” is an in-depth assessment of how to more effectively implement family business ownership succession planning through trusts. For an introduction to the subject of trusts in family business ownership, read, “How to Read a Trust.”
Teaching Kids Money Skills Pt 2.
BEING RESPONSIBLE WITH MONEY IS A LEARNED SKILL
The more you talk openly with your kids while reinforcing good money skills, the earlier your children will become confident and competent in their abilities to manage their financial capital. Below are a few areas which can be problematic for families, with suggestions that could help. We’ve targeted these for middle school-aged kids, but the ideas can be adjusted based on your kids’ ages.
Teaching Kids Money Skills Pt. 1
BEING RESPONSIBLE WITH MONEY IS A LEARNED SKILL
The more you talk openly with your kids while reinforcing good money skills, the earlier your children will become confident and competent in their abilities to manage their financial capital. Below are a few areas which can be problematic for families, with suggestions that could help. We’ve targeted these for middle school-aged kids, but the ideas can be adjusted based on your kids’ ages.
Succession Challenges: Lean Management and Silos
How to Build a Board (and Keep it from Running Away with your Business)
A board of directors is often promoted as a critical tool for growing family businesses—and rightly so. A well-constructed board can bring new thinking and perspective, better deliberation, along with expertise and experience that the business needs to grow and achieve its vision of success.
But boards are not a magic elixir, either. when the owners fail to communicate their vision—their direction—for the future of the business, there is a real possibility that the board’s well-intentioned efforts will veer off course, destroying capital the family has worked for years to create.
How to Read a Trust
IF YOU HAVE TO READ A TRUST…
Words to the wise: This article does not constitute legal advice. It is in no way a substitute for having a lawyer who works in the area of trusts and estates review your document and tell you what’s going on. What it will do is give you a basic grounding in a few key trust concepts. Just remember, a person who serves as his own lawyer has a fool for a client.
The Continuity Myth
You’ve read the statistics: Only 30 percent of all family-owned businesses survive into the second generation and only 12 percent will survive into the third generation. Only three percent of all family businesses operate at the fourth generation and beyond. Even if you haven’t read Roy Williams and Vic Preisser’s 2003 book, Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values, which gleaned these statistics from their study of 3,250 business-owning families, you’ve probably been served up the data by wealth management firms, private banks, and family business consulting operations seeking to persuade you that your family business is at great risk. “Do the right thing,” they say (invest more wisely, do your estate planning, form a family office, etc., etc.). Then, your business will continue generation after generation, and all will be well.
We here at Engaged Ownership don’t buy it.