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

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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