Do you know what is most important to your family? Are you clear about the goal your family assets should fulfil? What exactly would you like to bequeath to your heirs?
The lack of a clear vision, combined with ineffective communication, can cause misunderstandings, disputes and even inefficiencies in the management of family wealth.
Families who own a business or a pool of family assets, face not only the common challenges inherent to the management of any business, but also the added component of personal relationships between family members, which implies having to deal with highly sensitive and emotional issues such as successions, inheritances, generational changes, etc …
What are the family’s particular interests in the long term?
What level of involvement does each member want to have in the family business?
Do family members know what is important to the rest of the family?
It is in times of transition and when planning the future that values take on their full importance. When we talk about values, we mean what is important to each family member, the principles that guide our behaviours and therefore our life: honesty, integrity, transparency, cooperation, effort, tradition, family, tranquility, balance …
Why is it important to know the values of the family?
It is important to be aware that a full and satisfying life is only possible when our behaviours are aligned with our values. As a general rule, most people identify some of their values. However, fewer can prioritise between different values, and fewer still are aware of that scale of values. Throughout our lives, at times two fundamental values may be in conflict. This is where working to fine-tune the definition of individual and family values and their relative importance makes all the difference, making management, decision-making and conflict resolution less traumatic and more effective.
Be aware of and learn to communicate about these issues, about what is important for each family member, as well as what matters most to preserve the family’s heritage or the family business. Know too that diversity of opinion is not necessarily a negative thing but, on the contrary, should be seen as an opportunity to complement and enrich the family, and may help to increase family cohesion, avoid disputes and ultimately improve the daily life of the family group. In one case, the founder of a family business wanted to involve only one of his children in the management of the company, and was trying to reduce the impact of this decision at a family level. After a meeting with each family member, it emerged that the son in question did not want any responsibility in the family business, but had not communicated it to his father for fear that it would affect their relationship.
The family business can benefit from a coaching process by increasing family integration, improving communication among members and solving conflicts, as well as establishing sustainable and stable processes for the next generation, designing strategic plans and speeding up future decision-making to strengthen family heritage and personal relationships.
