ILMA Compoundings September 2016 - 30
FAMILY BUSINESS
Managing Complexity:
Moving from Succession
Planning to Developing a
Family Strategy
Andrew Keyt, MBA, MSMFT
O
ver the last 10 to 15 years, we've seen a
measurable shift in the complexity and speed of
change in the world that we live in. Changes
that used to happen across
three generations are
now happening within
one generation. For
family businesses, the
acceleration of the pace
of change places increased
stress on the already
complex family business
system. The challenge that
we face as advisors is in
knowing how to help
our Family Business/
Family Enterprise clients
face these stressors and achieve
their common goals for the future.
I believe that for years, our focus as a
field on succession planning has done
a disservice to our clients. Succession
planning both in context and content
places the primary focus on the transition
in the leadership of the business and uses that as
the focal point for the discussions about the shifts
in business leadership, family roles and ownership
transitions. What this approach fails to recognize is
the emerging research that shows that success across
multiple generations relies not just on the financial
success of the businesses or the financial success of
the family - it also relies on the quality and cohesion
in the relationship between family members and the
sense of pride and connection that they have to their
businesses and other economic endeavors (Astrachan &
Pieper, 2008).
For too long family business
advisors have tried to manage
the complexity of family
business by protecting the
business from the family.
The conversations
and structures are
all built around
the central idea of
ensuring that the family
does not screw up the
business. This approach
reflects fear-based
thinking and often
becomes a self-fulfilling
prophecy. We see the family
as a liability, the structures that
we put in place treat the family as such
and then the family starts behaving in this way.
Another way that I have seen advisors try to deal
with the complexity of a family enterprise is by
trying to boil down the conversation to, "Are you
a business-first family or a family-first business?"
This question seeks to quiet anxieties about the
real complexities of the family business system by
implying a clear-cut, hard-and-fast rule - "At the
end of the day, we will protect the business," or "At
the end of the day, we will protect the family."
The reality is that in complex families, we
sometimes need to lean toward taking care of the
business and sometimes we need to lean toward
Vol. 66 No. 9 * 30 * September 2016 Compoundings
ILMA Compoundings September 2016
Table of Contents for the Digital Edition of ILMA Compoundings September 2016
FROM THE CEO
BOARD BRIEF
NOTES FROM MSCI
THE HEART OF ILMA
THE ARGUS ANALYSIS
VOICES & VIEWS
INTERNATIONAL INSIGHT
SPEAKER SPOTLIGHT
FAMILY BUSINESS
FINANCIAL FREEDOM
RULES & REGS
POWER PLAY
LEGAL EASE
THE WHITE PAPER
ADVERTISERS INDEX
ILMA Compoundings September 2016 - 1
ILMA Compoundings September 2016 - 2
ILMA Compoundings September 2016 - 3
ILMA Compoundings September 2016 - 4
ILMA Compoundings September 2016 - FROM THE CEO
ILMA Compoundings September 2016 - 6
ILMA Compoundings September 2016 - 7
ILMA Compoundings September 2016 - 8
ILMA Compoundings September 2016 - BOARD BRIEF
ILMA Compoundings September 2016 - 10
ILMA Compoundings September 2016 - 11
ILMA Compoundings September 2016 - 12
ILMA Compoundings September 2016 - NOTES FROM MSCI
ILMA Compoundings September 2016 - 14
ILMA Compoundings September 2016 - THE HEART OF ILMA
ILMA Compoundings September 2016 - 16
ILMA Compoundings September 2016 - 17
ILMA Compoundings September 2016 - 18
ILMA Compoundings September 2016 - 19
ILMA Compoundings September 2016 - 20
ILMA Compoundings September 2016 - THE ARGUS ANALYSIS
ILMA Compoundings September 2016 - 22
ILMA Compoundings September 2016 - 23
ILMA Compoundings September 2016 - VOICES & VIEWS
ILMA Compoundings September 2016 - 25
ILMA Compoundings September 2016 - INTERNATIONAL INSIGHT
ILMA Compoundings September 2016 - 27
ILMA Compoundings September 2016 - SPEAKER SPOTLIGHT
ILMA Compoundings September 2016 - 29
ILMA Compoundings September 2016 - FAMILY BUSINESS
ILMA Compoundings September 2016 - 31
ILMA Compoundings September 2016 - FINANCIAL FREEDOM
ILMA Compoundings September 2016 - 33
ILMA Compoundings September 2016 - RULES & REGS
ILMA Compoundings September 2016 - 35
ILMA Compoundings September 2016 - POWER PLAY
ILMA Compoundings September 2016 - 37
ILMA Compoundings September 2016 - LEGAL EASE
ILMA Compoundings September 2016 - 39
ILMA Compoundings September 2016 - THE WHITE PAPER
ILMA Compoundings September 2016 - 41
ILMA Compoundings September 2016 - ADVERTISERS INDEX
ILMA Compoundings September 2016 - 43
ILMA Compoundings September 2016 - 44
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