Exceptional families not only identify their core values but also leverage their unique strengths and talents to build lasting legacies. This ability to recognise and harness what they do best is a crucial element in their long-term success. The Family Council Canvas, a strategic tool for Family Offices, includes a category dedicated to this very aspect. The questions in this section encourage families to reflect on their achievements, talents, and untapped skills, helping them realise their potential.

Research insights reinforce the importance of introspection and self-assessment in family business strategy. Identifying strengths and weaknesses allows family businesses to craft strategies that are tailored to their unique characteristics and to adapt effectively to changing circumstances.

Celebrating Achievements

One of the key questions in this category is, “What achievements are you very proud of?” Reflecting on past successes allows families to recognise the milestones they have reached and the collective effort that made those achievements possible. Exceptional families take pride in their accomplishments and use them as a foundation for future growth. Celebrating achievements not only boosts morale but also reinforces the family’s commitment to its goals. By acknowledging what has been done well, families can build confidence and set the stage for continued success.

Best Practices:

  • Celebrate Achievements: Keep a record of significant milestones and successes, ensuring that the entire family recognises and celebrates them.
  • Share Stories: Encourage family members to share personal stories related to these achievements, fostering a sense of unity and pride.
  • Leverage Successes: Use past achievements as a benchmark for future goals, learning from what worked well and applying those lessons to new challenges.

Recognising Individual Talents

Another important question asks, “Is there something you do very well that gives you energy no end?” Identifying activities and tasks that family members excel at and enjoy is key to sustaining long-term motivation and engagement. Exceptional families recognise that focusing on strengths leads to better performance, higher satisfaction, and a more positive family dynamic. By aligning roles and responsibilities with individual talents, families can optimise their collective output and maintain a high level of energy and enthusiasm.

Exceptional families understand that every individual brings something valuable to the table. By acknowledging and celebrating the unique abilities of their members, families can foster a culture of mutual respect and support. By identifying hidden strengths, families can unlock new opportunities and drive innovation within their businesses.

Best Practices:

  • Identify Strengths: Regularly assess the strengths and passions of each family member, ensuring that they are in roles that align with their natural talents.
  • Encourage Specialisation: Allow family members to specialise in areas where they excel, fostering a sense of mastery and accomplishment.
  • Promote Collaboration: Create opportunities for collaboration, allowing family members to combine their strengths and achieve greater results together.
  • Highlight Talents: During family meetings, take the time to acknowledge the specific talents of each member, reinforcing their value to the family’s success.
  • Assign Roles Accordingly: Use this understanding of talents to assign roles and responsibilities that align with each member’s strengths.
  • Encourage Development: Support ongoing development and skill enhancement, allowing family members to grow and refine their talents.
  • Conduct Skills Audits: Regularly assess the skills and abilities of family members, identifying those that are not currently being utilised.
  • Create Opportunities: Look for ways to create new roles or projects that enable family members to use their untapped skills.
  • Foster Innovation: Encourage family members to apply their skills in new and creative ways, driving innovation and growth.

Family Business and Diverging Talents

One potential challenge in family businesses arises when the talents of family members do not align with the need to find a successor for the business. For instance, a musically gifted only child may be expected to take over the family’s dairy business.

In practice, this situation can play out in various ways, with negative outcomes being more prevalent:

  1. Positive Outcome:
    • Through determination, a sense of duty, hard work, luck, or acceptance of their role, the individual may successfully combine the demands of the business with their talents. This can sometimes lead to a fulfilling and productive working environment, allowing the individual to thrive in their new position.
  2. Negative Outcome:
    • Resentment and disinterest can lead to a downward spiral of poor business decisions, resulting in an underperforming family business.

There is no one-size-fits-all solution for such cases. The most effective approach is to initiate a conversation with all parties involved as early as possible. This discussion should outline the hopes, wishes, and concerns of each individual and explore potential paths forward. It is advisable to involve a trusted advisor familiar with the family dynamics, business needs, and individuals involved.

A helpful way to start the discussion is to be aware of the type of family business, based on the family and business orientation axes defined by Leenders and Waarts (2003):

  • “Hobby Salon”: Low business orientation and low family orientation; it is primarily a passion project of the principal and does not resonate strongly with the family. It lacks sufficient financial resources to hire third-party managers, hindering professionalisation.
  • “Family Life Tradition”: Low business orientation and high family orientation; the family is deeply involved, but the preferential treatment of family members and their use of business assets can lead to financial inefficiencies.
  • “House of Business”: High business orientation and low family orientation; a high level of professionalisation is achieved through external managers and top management. The family remains on the board of directors but has no other direct ties to the business.
  • “Family Money Machine”: High business and family orientation; family members are committed to working and advancing the business for future generations.

Depending on the business type, succession – specifically the utilisation (or misuse) of family talents – may take a different path. However, studies over extended periods generally show a tendency for families to gravitate towards a business orientation (Leenders & Waarts, 2003). This suggests that economic pressures to focus on the business become more pronounced over time.

Conclusion

Exceptional families create successful strategies by understanding and leveraging what they do best. By reflecting on their achievements, harnessing natural talents, recognising individual strengths, and unlocking untapped potential, these families build a strong foundation for long-term success. The Family Council Canvas provides a structured approach to identifying and optimising these strengths, ensuring that every member of the family contributes to the collective success. By following the best practices outlined in this article, families can create a strategy that maximises their potential and sets them on a path to continued prosperity.

References:

Leenders, M. and Waarts, E. (2003). Competitiveness and Evolution of Family Businesses: The Role of Family and Business Orientation. European Management Journal, 21(6), pp. 686-697. Available at: https://doi.org/10.1016/j.emj.2003.09.012.