“Who will take over the business after you?”
This question – so familiar, so often asked of family business owner-managers by advisors, bankers, friends and family – is built on an assumption: succession planning is a baton pass. The assumption is understandable: Transition by baton pass has been the default of families and their advisors throughout the world for centuries. The premise that ownership and control of the business should pass to a single family member continues to dominate.
But the baton pass isn’t the only option. Enterprising families can choose to share ownership and governance. The advantages? The opportunity to tap into the full range of skills, talents and experience in the family tree to benefit the family in ways that go beyond financial gain.
The UHNW Institute invites members to join the authors of its latest whitepaper, A Blueprint for Multi-Generational Success: Building a Coalition of the Willing for a roundtable discussion on March 26 at 3:30 PM ET.
In their work with enterprising families throughout the world, they have advised families who felt that passing the baton was not the optimal model for their transition, and who have chosen to embark on a very different journey. To change the metaphor, these families want to design and build a very different structure of leadership and governance, with architecture that permits wider participation in the ownership and management of the enterprise, and to promote coordination with the family’s purpose and vision. They seek to welcome and foster what we call a “multi-generational coalition of the willing.”
Building a multi-generational coalition and a new form of governance of the family enterprise isn’t easy. You can likely hear the protests already: “Management knows best!” “Non-managing owners meddle in decisions they know nothing about!” “We need to protect the business!” “They’ll just want money!”
These concerns are common and even understandable. But they don’t mean that owning and operating a family enterprise with a multi-generational coalition is so challenging as to be impossible or unwise.
What was learned is that the path from one to many – from individual owner-manager to multi-generational coalition, operating in a purpose-built structure for leadership and governance, with the right wings, rooms and chairs – does require a shared purpose and vision, as well as a set of processes, practices and habits of mind not taught in traditional business management programs: a Coalition Mindset.
Guided by focused questions, the authors will highlight their distinct expertise and elevate the key perspectives readers should draw from the work. Attendees at the roundtable will be introduced to the core elements of the Coalition Mindset and provided with a practical framework for families and advisors interested in exploring this alternative approach.
Part 1 of the paper will be released on February 23, followed by Part 2 in early March.