Exceptional families that build lasting legacies and successful enterprises share a common trait: a well-defined strategy grounded in core values and continuous improvement. We are in the process of creating a Family Office strategising tool, the Family Council Canvas, which aims to align on fundamental aspects, from values to advisor effectiveness. This article explores how these families craft their strategies by addressing essential questions within the Council Cards categories, showcasing best practices in each area.
Our Values: The Foundation of Success
Defining and Upholding Core Values
Exceptional families start by clearly defining and upholding their core values. These values serve as guiding principles in every decision and action, providing a moral compass and a sense of purpose. Questions like, “What are the advantages of having family values?” and “What is one value you cannot live without?” encourage families to reflect on how these values foster unity, trust, and resilience. By identifying and consistently reinforcing a set of family values, exceptional families ensure their business operations and interpersonal relationships align with their foundational beliefs. This alignment is crucial for long-term success and cohesion.
Reinvigorating Values
Keeping family values relevant and impactful is a hallmark of successful families. They regularly evaluate and reinforce their values through family meetings, workshops, and integrating values into everyday activities. Questions like, “How do you reinvigorate your values and keep them purposeful?” and “What are your current set of family values?” prompt ongoing reflection and adaptation. Exceptional families understand that values need to evolve with changing circumstances and actively engage all members in this process to maintain a strong sense of identity and purpose.
What We Do Best: Leveraging Strengths
Recognising and Celebrating Achievements
Understanding and leveraging unique strengths and capabilities is key to maintaining a competitive edge. Questions like, “What achievements are you very proud of?” and “Is there something you do very well that gives you energy no end?” allow families to celebrate their successes and recognise the talents that drive these achievements. By highlighting accomplishments, families foster a culture of excellence and continuous improvement. Exceptional families regularly acknowledge and reward their strengths, which boosts morale and motivation.
Identifying and Utilising Hidden Talents
Exceptional families excel in identifying and utilising untapped skills. By asking, “What skills do you already possess but do not have the opportunity to use?” and “Name one talent of the person sitting on your right,” they uncover latent talents that can be pivotal in future endeavours. This proactive approach ensures that all family members contribute meaningfully to the business’s success, leveraging their unique abilities to enhance overall performance.
How We Help Each Other: Fostering Support and Collaboration
Cultivating Mentorship and Knowledge Transfer
Mutual support and collaboration are cornerstones of successful family enterprises. Questions like, “Do you consider another family member to be a mentor, in the past, present, or future?” and “Have you passed on knowledge to another generation? If so, what and how?” highlight the importance of mentorship and knowledge transfer. Exceptional families recognise mentors within the family, fostering a culture of continuous learning and support. This approach ensures that valuable experiences and insights are passed down through generations.
Supporting Through Challenges
Understanding how to support each other during difficult times is critical. Questions like, “How would you support a family council member going through a difficult time?” and “Who has which role in the family?” encourage families to discuss and establish support mechanisms. Successful families create an environment where members feel valued and supported, contributing to overall family cohesion and resilience. This mutual support system strengthens the family bond and enhances collective problem-solving capabilities.
Where We Can Improve: Embracing Growth and Development
Identifying Areas for Growth
Proactive families constantly seek ways to enhance their performance. Questions like, “What do you do that you are not good at yet?” and “Do we tackle problems as a group?” help identify areas for growth and development. This self-assessment promotes a culture of continuous improvement, where weaknesses are viewed as opportunities for learning and enhancement. Exceptional families embrace constructive feedback and strive to better themselves continually.
Avoiding Complacency
Addressing complacency is vital for sustained success. Questions like, “Is there some aspect in which you feel your family has become complacent?” and “If you had to start over, what would you have done differently?” encourage families to remain vigilant and proactive. By regularly evaluating their performance and striving for excellence, exceptional families adapt to changing circumstances and maintain their competitive edge. They actively seek out new challenges and opportunities for growth.
Measuring Progress: Setting Benchmarks and Evaluating Performance
Establishing Clear Metrics
High-achieving families set clear benchmarks to track their progress. Questions like, “How are you going to measure progress?” and “Are there ways that you can help your family council members stay committed to their goals?” prompt families to establish measurable goals and performance indicators. Regular evaluation against these benchmarks ensures that the family stays on track and can make informed decisions based on tangible results. High Net-Worth Families deploy data-driven approaches to develop and monitor metrics against which they can measure (and celebrate) their achievements. Often, though, a simple checklist of things to do or achieve will suffice.
Effective Feedback and Communication
Effective feedback mechanisms are crucial for continuous improvement. Questions like, “Who gives us feedback? And how do we remember it later?” and “How do you communicate when something is going wrong?” underscore the importance of regular, constructive feedback. By maintaining open communication channels, exceptional families address issues promptly and make necessary adjustments to their strategies. This continuous loop of feedback and improvement fosters a dynamic and responsive family governance structure.
Advisors: Ensuring Effective Guidance
Evaluating Advisor Performance
The role of advisors is critical in guiding family businesses. Questions like, “How do you measure the performance of your advisors?” and “Are you reliant on your advisors?” encourage families to regularly evaluate their advisors’ effectiveness. Exceptional families ensure that their advisors align with their vision and provide valuable insights that drive success. They maintain high standards and expect their advisors to deliver measurable results.
Selecting the Right Advisors
Selecting advisors who align with the family’s values and goals is essential. Questions like, “What qualities do you value in an advisor the most? What kind of advisors do you dislike, and why?” and “Do your advisors cover all areas where you don’t have the capacity, competence, or experience?” help families identify the traits they seek in their advisors. This clarity ensures that the family receives the best possible guidance and support. Exceptional families seek advisors who complement their strengths and fill in gaps in their expertise.
Conclusion
Exceptional families create successful strategies by addressing essential questions behind their plans and showcasing best practices in each area. By exploring core values, leveraging strengths, fostering support, embracing growth, measuring progress, and ensuring effective advisor guidance, these families build a robust framework for enduring success. Advisors can facilitate this process, helping families align on critical aspects and continuously improve their strategies with tools such as the Family Council Canvas. Through thoughtful reflection and proactive planning, families can achieve a sustainable and holistic legacy for future generations.
