“Raising
Children in an Affluent Society”: Patricia focuses
on encouraging families to keep open the lines of communication through
"family council meetings,” understanding the risks faced by a family
business (including reputational risk), and how to inculcate children with the
family’s core values when it comes to philanthropy and stewardship.Click here to view the video.
“Common
Risks Faced by Business Families”: Patricia discusses how a
family business faces unique risks as compared to a non-family business. She
urges all family business owners to take steps to ensure that assets are
protected in the event of a divorce, warns about the potential reputational
risks in the age of social media, and urges every family business to engage a
professional for a risk audit. Click here to view this video.
Click
here to read about Prince Lobel’s upcoming seminar on this subject, titled “Opportunities and
Risks in Succession Planning.”
“Different
Advisors, Different Roles”: As an advisor to a closely held business, it is
absolutely critical to know what the boundaries are for your role and when you
need to pull other experts into the conversation. The client may try to exert
pressure on you to come up with an answer, but it’s your job to know when to
back away from a situation that is not within your realm of expertise. Understanding the scope of your expertise and
collaborating with other advisors are key factors to working successfully for
the family business. If you continually ask yourself “is this in the client’s
best interest,” you can’t go wrong. Click
here to view the video.
“Planning Ahead for a
Family Business Crisis – Part One”: Motivating the founder or owner of a
business to be proactive about planning for future leadership can be very
difficult. It is also difficult when a crisis does occur, like the death,
illness, or disability of a strong family/business leader, the family may be
ill-equipped to deal with the business at hand. However, someone needs to be in
charge no matter what the circumstances are, and it is the role of the family’s
trusted advisor to try to keep the business moving forward – one step at a
time. Set up a family meeting; create interim steps that don’t have to be the
final steps. Be an active listener and don’t be too aggressive. The family will
set the pace and the advisor has to be tuned into that at every turn, bringing
in other experts as needed. Click here
to view the video.
"Planning Ahead For a
Family Business Crisis – Part Two": In the situation where the head of the
family/head of the business is incapacitated, a son or daughter might step into
that role, even temporarily. But how should that person now be compensated?
Some family members might believe it’s simply their obligation, but they and
their spouses might believe that with increased responsibilities should come
increased pay. And what are the limits of this new power? What is his/her
authority? This is where the lines become blurred between family and business.
Hiring independent experts to give outside perspectives and provide comparative
market information can ease family tensions. In this case, the family could
hire an independent compensation
consultant to provide an unbiased business analysis to this emotional
issue. Click here to view this video.
Business
Families Foundation is an international organization dedicated to providing
powerful educational information and experiences that “help family enterprises
address their unique challenges.” BFF produces and distributes multimedia
educational material for business families, professionals working with these
families, as well as both undergraduate and graduate students. BFF also offers
online courses and multiday workshops that offer families the opportunity to
learn and resolve issues together. Click here for more information about this
organization.
