ILMA Compoundings August 2017 - 33

showing up as a crisis. In families with
long or multigenerational histories and
with strong emotional ties, recognizing
and managing conflict is more difficult
and more challenging than for nonfamily managers.
As experts in family business,
we understand that tried-and-true
approaches of conflict resolution have
their roots primarily in the legal and
family counseling fields, and as such
tend to present overly simplistic ways
to "resolve" conflicts that might not be
effective in addressing the complexities
of relationship that are common to
families in business together. In order
to figure out a realistic approach to
these unique challenges, we recommend asking five key questions:
* Accurately defining the various
components of a conflict can be
helpful. Can we clearly describe

the conflict in such a way that all
family members believe their perspective or interest has been heard?
* Effectively managing a conflict
often means being creative and
flexible. Are we willing to explore
every possible option to help
address a conflict?
* Longer-term solutions to conflict
take time, commitment and energy.
How might we think about longterm solutions versus "quick fixes"?
* Sometimes conflicts can fester longer
because it is difficult to talk about
them. What is it that we either
"can't" or "won't" talk about that
might be keeping a conflict in place?
* Lessons from past family conflicts
can inform current ones. What
can we learn from past generations to avoid repeating mistakes
made in past conflicts?

long-run fiscal projections are subject to a wide margin of error
because, in addition to potential legislative changes, they are
sensitive to assumptions about economic growth, inflation and
interest rates.
The bottom line is that government deficits and debt do
matter, but it is virtually impossible to predict when financing
problems might occur. There is no particular level of the debtto-GDP ratio that will trigger a crisis, because much depends on
the domestic and global economic and financial environment.
While it seems likely that federal deficits will head higher over
the next few years, the prospects for U.S. growth to be higher
this year than last and for pro-growth fiscal initiatives to be
legislated - which should augment the already positive fundamental backdrop - are encouraging. Both would serve to retard
increases to the present deficit, if not begin to whittle away at its
future balance.
At the moment, and likely for the foreseeable future, the outlook for economic activity is positive, driven mainly by consumer
spending but augmented by a return to capital expenditures from
the increasingly sanguine business community. That should con-

The bottom line is that true conflicts in family businesses tend to not
only be complex but also the result of
long-term, developing processes rather
than one-time events. Finding ways to
address these questions can give families a firmer foundation from which to
address conflicts rather than becoming
bogged down by them.
De Dreu, Harinck, & Van Vianen, (1999). Conflict
and performance in groups and organizations. In
Cooper & Robertson (Eds.), International Review
of Industrial and Organizational Psychology (Vol
14, pp. 369-414). Chichester, UK: Wiley.
1

Rhodes is a senior consultant
with the Family Business
Consulting Group and serves
as core faculty with Pepperdine
University's Graduate Programs in Organization
Leadership and Change in Malibu, California.
He can be reached at 949-422-3762 or
rhodes@thefbcg.com.

tinue to support the reinforcing cycle of sturdy economic growth
and better corporate profits.
As for investors, we continue to believe stocks will deliver
better returns over the year's balance than bonds or cash. While
a correction is overdue, and there are geopolitical risks lurking
in the wings, including North Korea, European elections and
Middle Eastern military confrontations, the stock market's longterm advance should not be derailed if something erupts. The
economy is sound, global activity is in a synchronized upswing
and corporate profits are growing smartly. These are conditions for risk-based capital to be treated favorably. Our favored
domestic sectors include financials, housing-related industries,
health care and energy. We also continue to advocate European
equities and are pleased to see the year-to-date returns generated from many bourses within the Euro zone well exceed those
generated in the U.S.
Portions of this article were prepared by Broadridge Investor
Communication Solutions Inc. and Mark Luschini, chief
investment strategist, Janney Montgomery Scott LLC.
Member: FINRA, NYSE, SIPC.

33



Table of Contents for the Digital Edition of ILMA Compoundings August 2017

Letter From the President
Letter From the CEO
Inside ILMA
What's Coming Up
In the Know
Industry Rundown
Market Report
Bridging the Gap from ILSAC GF-5 to GF-6
Who's Next
It's About the Process
Business Hub
Counsel Compound
Washington Landscape
Member Connections
Cross Connections
Portrait
ILMA Compoundings August 2017 - Cover1
ILMA Compoundings August 2017 - Cover2
ILMA Compoundings August 2017 - 1
ILMA Compoundings August 2017 - 2
ILMA Compoundings August 2017 - Letter From the President
ILMA Compoundings August 2017 - 4
ILMA Compoundings August 2017 - Letter From the CEO
ILMA Compoundings August 2017 - Inside ILMA
ILMA Compoundings August 2017 - 7
ILMA Compoundings August 2017 - What's Coming Up
ILMA Compoundings August 2017 - 9
ILMA Compoundings August 2017 - Industry Rundown
ILMA Compoundings August 2017 - 11
ILMA Compoundings August 2017 - Market Report
ILMA Compoundings August 2017 - 13
ILMA Compoundings August 2017 - 14
ILMA Compoundings August 2017 - 15
ILMA Compoundings August 2017 - Bridging the Gap from ILSAC GF-5 to GF-6
ILMA Compoundings August 2017 - 17
ILMA Compoundings August 2017 - 18
ILMA Compoundings August 2017 - 19
ILMA Compoundings August 2017 - 20
ILMA Compoundings August 2017 - 21
ILMA Compoundings August 2017 - Who's Next
ILMA Compoundings August 2017 - 23
ILMA Compoundings August 2017 - 24
ILMA Compoundings August 2017 - 25
ILMA Compoundings August 2017 - 26
ILMA Compoundings August 2017 - 27
ILMA Compoundings August 2017 - It's About the Process
ILMA Compoundings August 2017 - 29
ILMA Compoundings August 2017 - 30
ILMA Compoundings August 2017 - 31
ILMA Compoundings August 2017 - Business Hub
ILMA Compoundings August 2017 - 33
ILMA Compoundings August 2017 - Counsel Compound
ILMA Compoundings August 2017 - 35
ILMA Compoundings August 2017 - Member Connections
ILMA Compoundings August 2017 - 37
ILMA Compoundings August 2017 - Cross Connections
ILMA Compoundings August 2017 - 39
ILMA Compoundings August 2017 - Portrait
ILMA Compoundings August 2017 - Cover3
ILMA Compoundings August 2017 - Cover4
https://www.nxtbook.com/ygsreprints/ILMA/G120XXX_ILMA_vol70_no7
https://www.nxtbook.com/ygsreprints/ILMA/G119XXX_ILMA_vol70_no6
https://www.nxtbook.com/ygsreprints/ILMA/G118112_ILMA_vol70_no5
https://www.nxtbook.com/ygsreprints/ILMA/G117382_ILMA_vol70_no4
https://www.nxtbook.com/ygsreprints/ILMA/G116888_ILMA_vol70_no3
https://www.nxtbook.com/ygsreprints/ILMA/G115555_ILMA_vol70_no2
https://www.nxtbook.com/ygsreprints/ILMA/G114774_ILMA_vol70_no1
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no12
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no11
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no10
https://www.nxtbook.com/ygsreprints/ILMA/g109884_ILMA_vol69_no9
https://www.nxtbook.com/ygsreprints/ILMA/g109284_ILMA_vol69_no8
https://www.nxtbook.com/ygsreprints/ILMA/g108494_ILMA_vol69_no7
https://www.nxtbook.com/ygsreprints/ILMA/g107507_ILMA_vol69_no6
https://www.nxtbook.com/ygsreprints/ILMA/g106483_ILMA_vol69_no5
https://www.nxtbook.com/ygsreprints/ILMA/g105803_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/g104743_ILMA_vol69_no3
https://www.nxtbook.com/ygsreprints/ILMA/g103647_ILMA_vol69_no2
https://www.nxtbook.com/ygsreprints/ILMA/g102869_ILMA_vol69_no1
https://www.nxtbook.com/ygsreprints/ILMA/g101930_ILMA_vol68_no12
https://www.nxtbook.com/ygsreprints/ILMA/g100836_ILMA_vol68_no11
https://www.nxtbook.com/ygsreprints/ILMA/g99200_ILMA_vol68_no10
https://www.nxtbook.com/ygsreprints/ILMA/g98468_ILMA_vol68_no9
https://www.nxtbook.com/ygsreprints/ILMA/g97711_ILMA_vol68_no8
https://www.nxtbook.com/ygsreprints/ILMA/G96767ILMA_vol68_no7
https://www.nxtbook.com/ygsreprints/ILMA/G95397ILMA_vol65_no6
https://www.nxtbook.com/ygsreprints/ILMA/G94323ILMA_vol68_no5
https://www.nxtbook.com/ygsreprints/ILMA/G93127_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/G91785_ILMA_vol68_no3
https://www.nxtbook.com/ygsreprints/ILMA/G90956_ILMA_vol68_no2
https://www.nxtbook.com/ygsreprints/ILMA/G89146_ILMA_vol68_no1
https://www.nxtbook.com/ygsreprints/ILMA/G87981_ILMA_vol67_no12
https://www.nxtbook.com/ygsreprints/ILMA/G85409_ILMA_vol67_no11
https://www.nxtbook.com/ygsreprints/ILMA/G83595_ILMA_vol67_no10
https://www.nxtbook.com/ygsreprints/ILMA/G81672_ILMA_vol67_no9
https://www.nxtbook.com/ygsreprints/ILMA/G80238_ILMA_vol7_no8
https://www.nxtbook.com/ygsreprints/ILMA/G79388_ILMA_vol7_no7
https://www.nxtbook.com/ygsreprints/ILMA/G78361_ILMA_vol7_no6
https://www.nxtbook.com/ygsreprints/ILMA/G77448_ILMA_vol7_no5
https://www.nxtbook.com/ygsreprints/ILMA/G75899_ILMA_vol67_no4
https://www.nxtbook.com/ygsreprints/ILMA/G75036_ILMA_vol67_no3
https://www.nxtbook.com/ygsreprints/ILMA/G72720_ILMA_vol67_no2
https://www.nxtbook.com/ygsreprints/ILMA/G72220_ILMA_vol67_no1
https://www.nxtbook.com/ygsreprints/ILMA/G70970_ILMA_vol66_no12
https://www.nxtbook.com/ygsreprints/ILMA/G69813_ILMA_vol66_no11
https://www.nxtbook.com/ygsreprints/ILMA/G67522_ILMA_vol66_no10
https://www.nxtbook.com/ygsreprints/ILMA/G66343_ILMA_vol66_no9
https://www.nxtbook.com/ygsreprints/ILMA/G64859_ILMA_vol66_no8
https://www.nxtbookmedia.com