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Family Business Conflict

Family Business Conflict

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

You might think conflict in family business is predominately around business performance. Wrong. At the core, it’s most commonly about the ‘people’ side of things: ineffective communication, and not recognising the different needs, interests & capability of family members. Evolutionary psychology tells us that we behave more altruistically toward the relatives with whom we share the greatest genetic overlap, and more with our maternal than paternal relatives. This means as the family group grows deeper…

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Pruning the Tree - Exit Strategy

Pruning the Tree

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

As a tree grows, it is often helpful to prune some branches to make space for other branches to grow. As families grow generationally, “pruning” – allowing some family branches to exit – can be beneficial both to the main family group and to the group that chooses to exit. As families grow, so does the diversity of family members. Managing the diverse needs and expectations becomes much harder. Unless the family business is always…

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Advisor succession family perspective

Advisor succession: family perspective

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

I’ve written several times about the challenges of advisor succession, and now want to look at this from a family risk perspective. If your advisor is suddenly unable to work, is it the advisory firm’s problem, or yours? While the personal connection between a family of significant wealth and its advisors is important, succession arrangements on the advisor side can have a huge impact on the family. From a risk perspective, it’s important to avoid…

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The New Matriarchs

The New Matriarchs

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

Change is in the winds. Women control more than 60% of personal wealth in the USA. While older generations hold a patriarchal view of wealth, only a third of their children held such views. Women family leaders, regardless of age, are challenging traditional gender roles.  The ecosystem is adapting to these changes, recognising that within the family office, there was a need to approach women differently than men. We are seeing initiatives to help women…

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Q&A: Charitable Children

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

Q: We’re just approaching a liquidity event. How do I get my twentysomething children involved in our plans for philanthropy? A: Stop right there. You might be 10-20 years late. Many families do things in the following order: create wealth, extract liquidity, then give charity in a big way. Now, that makes plenty of sense. You can’t give charity in a big way until you have the liquidity. And creating a foundation as a vehicle to perpetuate giving is…

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The non-family CEO

The non-family CEO

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

As a family enterprise matures, and often in the context of succession planning (or ageing incumbents), the decision to appoint a non-family CEO comes to the fore. Having made the decision to consider one, families ask the usual question: what do we want in a (non-family) CEO? Perhaps they should turn it around and ask themselves: what non-family member would want to be our CEO and why? Putting themselves in the shoes of a prospective…

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Entrepreneurial Legacy

Entrepreneurial Legacy

By Articles, Familosophy, LinkedIn, original No Comments

Most wealth is created through entrepreneurship. When wealth creators think about the legacy they leave to future generations, the most common thing that comes to mind is the wealth itself, which is the product of entrepreneurial activity. But what of the entrepreneurial spirit itself? Gates, Bezos, Musk and others received support from their families in the early stages of their ventures. Family members who are so inclined can more readily access seed capital to fund their ideas….

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Equal of Fair?

Equal or Fair?

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

A recent survey has found that only about a quarter of HNW parents plan to split their wealth equally amongst their children. Factors in the decision include their children having different approaches to money, estrangement, not wanting to support a child’s partner, and adjusting for previous significant financial support. There are also variations for the different care responsibilities of children, and the number of grandchildren. There are two key lessons here: firstly, equal is not…

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Can we talk about family wealth

Q&A: Can we talk?

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

Q: How do we tell the kids about our family wealth? A: First and possibly most important point: they already know. By the lifestyle you lead and the people you mix with, your children have already made assumptions about the family wealth. They will also have garnished information on this topic from friends and from public sources. That means in terms of controlling the conversation, you are already well behind, so be aware of what you can and…

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Covid & Resilience

COVID & Resilience

By Articles, Familosophy, Featured Posts, LinkedIn, original No Comments

As we enter the third year of this pandemic, it’s worth reflecting on the theme of resilience. By retaining their long-term view, family businesses have been able to not just weather the storm but also grow and thrive. Their resilience comes from other factors as well: the entrepreneurial spirit of innovating in times of crisis, and the emotional and social bonds that exist both within the family and within the wider family business group and…

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