SlideShare a Scribd company logo
1 of 3
Download to read offline
Family Sustainability Requires E.N.E.R.G.Y.
       By Dr. James M. Weiner

       Published November 2011
                                                                                                                                                                                                                                                      	
  
	
  

“Growing	
   up,	
   I	
   was	
   aware	
   that	
   my	
   grandfather	
   was	
   a	
   great	
   man.	
  	
             resources	
  that	
  focus	
  specifically	
  on	
  helping	
  affluent	
  families,	
  such	
  
My	
  parents,	
  particularly	
  my	
  father,	
  seemed	
  to	
  be	
  cut	
  from	
  the	
  same	
                       as:	
   single	
   and	
   multiple	
   family	
   offices;	
   attorneys;	
   accountants;	
  
cloth	
   and	
   share	
   in	
   the	
   family’s	
   success.	
   	
   Heads	
   of	
   state	
   and	
   business	
     investment	
   and	
   insurance	
   advisors;	
   as	
   well	
   as	
   various	
   family	
  
leaders	
  were	
  frequent	
  visitors	
  to	
  our	
  home.	
  	
  It	
  was	
  never	
  said,	
  but	
                   business	
  consultants.	
  	
  	
  
with	
  the	
  high	
  visibility	
  and	
  the	
  conversations	
  about	
  our	
  future,	
  the	
                        	
  
expectations	
   for	
   us	
   were	
   always	
   implied.	
   	
   And	
   to	
   be	
   honest	
   I	
   envied	
       Succession	
   issues,	
   the	
   sale	
   of	
   a	
   business	
   (or	
   other	
   liquidity	
  
that	
  kind	
  of	
  life.	
  	
  Not	
  just	
  the	
  lifestyle,	
  but	
  the	
  kind	
  of	
  prominence	
             events),	
  estate	
  and	
  trust	
  strategies,	
  a	
  death	
  in	
  a	
  family	
  are	
  often	
  
that	
  my	
  grandfather	
  and	
  father	
  had.”	
                                                                       the	
  catalysts	
  for	
  advisors	
  to	
  become	
  more	
  involved	
  in	
  the	
  family’s	
  
	
                                                                                                                          decision	
   making	
   process.	
   	
   Likewise,	
   the	
   inclusion	
   of	
   new	
   family	
  
During	
   a	
   recent	
   conversation,	
   Henry	
   shared	
   his	
   family’s	
   story	
                             members	
   through	
   weddings	
   or	
   birth,	
   while	
   joyful	
   occasions,	
  
with	
  me.	
  I’m	
  not	
  sure	
  members	
  of	
  the	
  Next	
  Gen	
  would	
  recognize	
                            pressure	
   families	
   to	
   think	
   about	
   the	
   future.	
   	
   Each	
   change	
   raises	
  
Henry’s	
   family	
   name.	
   	
   Once	
   as	
   prominent	
   as	
   Bill	
   Gates	
   or	
   Steve	
                new	
  concerns,	
  but	
  the	
  transition	
  of	
  wealth	
  or	
  a	
  business	
  is	
  often	
  
Jobs,	
   the	
   surname	
   of	
   his	
   family	
   lives	
   on.	
   	
   However,	
   neither	
   the	
               the	
   most	
   significant	
   event	
   in	
   the	
   long-­‐term	
   history	
   of	
   a	
   family.	
  	
  
opportunities	
   nor	
   the	
   wealth	
   accumulated	
   by	
   the	
   family	
   was	
                                While	
  navigating	
  the	
  way	
  through	
  such	
  moments	
  of	
  transition	
  is	
  
passed	
  on	
  to	
  Henry’s	
  generation.	
  	
  One	
  day	
  he	
  awoke	
  to	
  the	
  reality	
                     critical,	
   it	
   is	
   what	
   happens	
   in-­‐between	
   that	
   guarantees	
  
that	
  the	
  lifestyle	
  that	
  surrounded	
  him	
  as	
  a	
  child	
  was	
  now	
  out	
  of	
                      sustainability.	
  	
  
reach.	
   	
   Henry	
   grew	
   up	
   with	
   the	
   expectation	
   that	
   one	
   day	
   he	
                    	
  
would	
   find	
   his	
   way	
   into	
   the	
   world	
   of	
   great	
   men,	
   like	
   his	
                      Lifecycle	
  events	
  and	
  milestone	
  markers	
  are	
  inherently	
  emotional	
  
grandfather	
  and	
  father.	
  	
  	
  	
                                                                                 in	
  nature.	
  	
  It	
  is	
  not	
  unusual	
  for	
  wedding	
  preparations	
  to	
  bring	
  out	
  
	
                                                                                                                          the	
   best	
   and	
   worst	
   in	
   families.	
   	
   Grieving	
   family	
   members	
  
It	
  is	
  leaders,	
  like	
  Henry’s	
  grandfather	
  and	
  father,	
  who	
  are	
  behind	
                          experiencing	
   feelings	
   of	
   sadness	
   and	
   anger	
   that	
   can	
   accompany	
  
the	
   growth	
   of	
   nations	
   and	
   whose	
   philanthropic	
   efforts	
   have	
   the	
                        the	
   death	
   of	
   someone	
   close,	
   are	
   faced	
   with	
   making	
   practical	
  
power	
   to	
   change	
   lives	
   across	
   the	
   globe.	
   	
   On	
   a	
   daily	
   basis,	
                    decisions	
   in	
   the	
   midst	
   of	
   that	
   turmoil.	
   Devoting	
   concerted	
   energy	
  
entrepreneurs	
   accomplish	
   their	
   business	
   objectives	
   and	
   figure	
   a	
                               focused	
  on	
  the	
  family	
  over	
  time	
  develops	
  sustainability.	
  	
  Henry’s	
  
way	
  around	
  the	
  obstacles	
  that	
  stand	
  in	
  their	
  way.	
  	
  From	
  start-­‐ups	
                      family	
   is	
   a	
   clear	
   example	
   of	
   what	
   happens	
   when	
   this	
   is	
   neglected.	
  	
  
to	
   established	
   companies,	
   the	
   vast	
   majority	
   of	
   these	
   enterprises	
                          Given	
   the	
   entrepreneurial	
   accomplishments	
   of	
   this	
   family,	
   it	
   is	
  
are	
  family-­‐held.	
  	
                                                                                                 hard	
  to	
  imagine	
  that	
  neither	
  the	
  family’s	
  advisors	
  nor	
  the	
  family	
  
	
                                                                                                                          itself	
   were	
   prepared	
   to	
   deal	
   with	
   the	
   issues	
   that	
   affect	
  
Given	
   the	
   fortitude	
   and	
   ingenuity	
   of	
   these	
   men	
   and	
   women,	
   the	
                     sustainability.	
  	
  	
  
challenges	
   of	
   sustaining	
   wealth	
   across	
   generations	
   should,	
   like	
                               	
  
any	
  other	
  business	
  problem,	
  be	
  a	
  challenge	
  that	
  can	
  be	
  overcome.	
  	
                        Henry	
   is	
   Henry	
   Kaiser.	
   Imagine	
   growing	
   up	
   in	
   the	
   shadow	
   of	
  
That	
   said,	
   private	
   investors,	
   as	
   well	
   as	
   those	
   who	
   entrust	
   their	
                  Kaiser	
   Industries:	
   	
   Kaiser	
   Aluminum,	
   Kaiser	
   Steel,	
   Kaiser	
   Jeep,	
  
financial	
   future	
   to	
   their	
   advisors,	
   continue	
   to	
   struggle	
   with	
                             and	
   Kaiser-­‐Permanente	
   HMO,	
   to	
   name	
   a	
   few	
   of	
   the	
   industries	
  
figuring	
  out	
  how	
  to	
  sustain	
  wealth	
  across	
  multiple	
  generations.	
  	
  	
  	
                       started	
   by	
   his	
   grandfather.	
   	
   Henry’s	
   assumption	
   that	
   he	
   would	
  
	
                                                                                                                          benefit	
  from	
  the	
  family’s	
  wealth	
  was	
  completely	
  reasonable	
  given	
  
Of	
   course,	
   no	
   one	
   need	
   travel	
   the	
   path	
   alone.	
   	
   Business	
   leaders	
               the	
  world	
  that	
  surrounded	
  him	
  as	
  a	
  child.	
  As	
  an	
  adult,	
  he	
  believed	
  
and	
   their	
   families	
   can	
   draw	
   on	
   the	
   abundance	
   of	
   professional	
                          that	
  he	
  was	
  doing	
  all	
  the	
  right	
  things	
  to	
  put	
  himself	
  on	
  the	
  path	
  of	
  	
  
©	
  2011	
  Michael	
  Joyce	
  Properties,	
  LLC	
                                                                                                                                                                                         1	
  
Family Sustainability Requires E.N.E.R.G.Y.
       By Dr. James M. Weiner

       Published November 2011
                                                                                                                                                                                                                                               	
  
	
                                                                                                                  	
  
securing	
   his	
   future	
   at	
   Kaiser	
   Industries	
   and	
   carrying	
   on	
   the	
                  own	
   voice.	
   	
   The	
   most	
   frequent	
   concern	
   we	
   hear	
   from	
   family	
  
legacy	
  of	
  his	
  father	
  and	
  grandfather.	
  	
  	
                                                      members	
   is	
   that	
   decisions	
   often	
   seem	
   to	
   be	
   made	
   for	
   them	
   and	
   it	
  
	
                                                                                                                  doesn’t	
  matter	
  if	
  they	
  are	
  engaged	
  or	
  not.	
  
So	
   then	
   what	
   happened?	
   	
   One	
   day,	
   Henry	
   was	
   confronted	
   with	
                	
  
the	
   news	
   that	
   the	
   corporation	
   had	
   announced	
   a	
   plan	
   of	
   voluntary	
           Jay	
   Hughes	
   states,	
   the	
   unique	
   family	
   story	
   (or	
   Narrative)	
   serves	
  
liquidation.	
   	
   At	
   that	
   moment,	
   Henry’s	
   world	
   shifted	
   and	
   he	
                    to	
   connect	
   future	
   generations	
   and	
   is	
   essential	
   for	
   preserving	
  
realized	
   that	
   the	
   opportunities	
   he	
   dreamt	
   about	
   would	
   never	
                       family	
   wealth.	
   It	
   might	
   be	
   easier	
   to	
   discuss	
   what	
   is	
   not	
   the	
   family	
  
come	
  from	
  his	
  grandfather	
  or	
  father.	
  He	
  was	
  on	
  his	
  own.	
                             narrative.	
  	
  A	
  narrative	
  is	
  not	
  the	
  family	
  history,	
  an	
  account	
  of	
  the	
  
	
                                                                                                                  great	
   accomplishments	
   of	
   the	
   founder,	
   or	
   a	
   genealogy	
   chart.	
  	
  
Consider	
   the	
   resourcefulness	
   and	
   engagement	
   that	
   Henry’s	
                                  While	
   all	
   these	
   may	
   be	
   part	
   of	
   a	
   narrative	
   the	
   best	
   way	
   to	
  
grandfather	
  mustered	
  to	
  help	
  organize	
  the	
  consortium	
  known	
  as	
                             understand	
  a	
  narrative	
  is	
  to	
  think	
  about	
  the	
  story	
  you	
  would	
  tell	
  
Six	
   Companies,	
   Inc.	
   to	
   build	
   the	
   Hoover	
   Dam	
   during	
   the	
   Great	
              about	
   your	
   family,	
   containing	
   messages	
   and	
   lessons	
   learned.	
  
Depression.	
   	
   In	
   retrospect,	
   Henry	
   recognizes	
   the	
   value,	
   both	
                      Since	
   this	
   would	
   involve	
   your	
   perceptions	
   others	
   might	
   argue	
  
financial	
   and	
   personal,	
   that	
   could	
   have	
   come	
   from	
   devoting	
                        that	
  the	
  story	
  is	
  not	
  fact.	
  	
  	
  
resources	
  on	
  planning	
  the	
  future	
  of	
  the	
  family.	
                                              	
  
	
                                                                                                                  Family	
  mission	
  statements	
  serve	
  one	
  purpose,	
  in	
  contrast	
  to	
  the	
  
To	
   illustrate	
   the	
   point,	
   we’ve	
   turned	
   the	
   word	
   “energy”	
   into	
   the	
          narrative,	
   which	
   highlights	
   the	
   family’s	
   many	
   dimensions.	
  
acronym	
   E.N.E.R.G.Y	
   (Engaged,	
   Narrative,	
   Entrepreneurial,	
                                         Included	
   in	
   a	
   family	
   narrative	
   are	
   the	
   intergenerational	
  
Resourceful,	
   Growth	
   and	
   Yearning).	
   	
   An	
   engaging,	
   family	
                               perceptions	
   of	
   what’s	
   important.	
   	
   Family	
   traditions,	
   attitudes	
  
narrative	
   of	
   entrepreneurial	
   spirit,	
   filled	
   with	
   resourcefulness,	
                         about	
   accomplishments,	
   spirituality,	
   and	
   guiding	
   principles	
   are	
  
growth	
  driven	
  by	
  yearning	
  and	
  passion	
  encourage	
  sustainability.	
                              woven	
   in	
   the	
   story	
   and	
   serve	
   to	
   build	
   sustainability,	
   without	
  
When	
   teamed	
   with	
   advisors	
   who	
   support	
   these	
   characteristics,	
                          them	
   families	
   are	
   torn	
   apart.	
   	
   Most	
   families	
   believe	
   that	
   that	
   they	
  
families	
   prosper	
   and	
   advisors	
   build	
   lasting	
   intergenerational	
                             have	
  no	
  control	
  over	
  the	
  family’s	
  narrative,	
  particularly	
  after	
  the	
  
relationships.	
                                                                                                    kids	
  are	
  grown	
  and	
  gone,	
  yet	
  it	
  is	
  the	
  accounts	
  of	
  past	
  events	
  that	
  
	
                                                                                                                  retain	
  the	
  connection	
  to	
  the	
  family	
  and	
  is	
  continually	
  being	
  built	
  
Let’s	
   start	
   with	
   Engaged.	
   	
   In	
   Centuries	
   of	
   Success,	
   William	
   O’Hare	
        upon.	
   	
   A	
   value	
   is	
   communicated	
   and	
   a	
   foundation	
   is	
   reinforced.	
  
interviews	
   some	
   of	
   the	
   most	
   enduring	
   family	
   businesses	
   in	
   the	
                 This	
  guides	
  the	
  family.	
  The	
  test	
  of	
  a	
  family’s	
  longevity	
  is	
  how	
  they	
  
world.	
   	
   All	
   the	
   families	
   interviewed	
   went	
   back	
   hundreds	
   of	
   years.	
  	
     rise	
   to	
   the	
   occasion	
   when	
   faced	
   with	
   challenges.	
   For	
   the	
   most	
  
In	
  his	
  conclusion,	
  he	
  notes	
  that	
  family	
  unity	
  and	
  a	
  commitment	
  to	
                part,	
   advisors	
   do	
   not	
   concern	
   themselves	
   with	
   a	
   family’s	
  
continue	
   the	
   legacy	
   were	
   the	
   two	
   key	
   elements	
   that	
   were	
   evident	
           narrative.	
  
in	
  all	
  of	
  the	
  families	
  interviewed.	
  	
  	
                                                        	
  
	
                                                                                                                  What	
  does	
  any	
  of	
  this	
  have	
  to	
  do	
  with	
  managing	
  money?	
  	
  A	
  brief	
  
Henry	
   recalls	
   only	
   a	
   handful	
   of	
   conversations	
   with	
   his	
                            example	
  is	
  an	
  advisor	
  who	
  asked	
  his	
  client	
  couple	
  whether	
  they	
  
grandfather.	
  	
  Even	
  though	
  he	
  discussed	
  with	
  his	
  father	
  a	
  future	
  in	
               collected	
   anything,	
   which	
   is	
   a	
   question	
   most	
   advisors	
   don’t	
   ask.	
  	
  
the	
  business,	
  and	
  even	
  took	
  on	
  a	
  challenging	
  work	
  related	
  project	
                   Turns	
  out,	
  she	
  was	
  an	
  art	
  collector	
  and	
  he	
  was	
  passionate	
  about	
  
for	
  his	
  father,	
  Henry,	
  like	
  many	
  others,	
  struggled	
  with	
  finding	
  his	
  	
             his	
  wine	
  cellar.	
  	
  The	
  family	
  narrative	
  for	
  them	
  included	
  their	
  wish	
  
	
                                                                                                                  that	
  the	
  next	
  generation	
  would	
  	
  
©	
  2011	
  Michael	
  Joyce	
  Properties,	
  LLC	
                                                                                                                                                                                  2	
  
Family Sustainability Requires E.N.E.R.G.Y.
              By Dr. James M. Weiner

              Published November 2011
                                                                                                                                                                                                                                                     	
  
       	
                                                                                                                      	
  
       learn	
  the	
  joy	
  of	
  appreciation	
  that	
  they	
  experienced	
  building	
  their	
                         struggle	
  with	
  the	
  control	
  of	
  a	
  single	
  business,	
  an	
  “entrepreneurial	
  
       collections.	
   	
   Ironically,	
   it	
   was	
   on	
   this	
   basis	
   that	
   the	
   advisor	
   began	
     family”	
   can	
   consider	
   a	
   wider	
   range	
   of	
   options	
   for	
   the	
  
       to	
  build	
  a	
  relationship	
  with	
  other	
  members	
  of	
  his	
  client’s	
  family.	
  	
                  sustainability	
   of	
   family	
   wealth.	
   Rather	
   than	
   compete	
   for	
  
       He	
  found	
  mutual	
  interests,	
  and	
  when	
  the	
  time	
  came	
  to	
  deal	
  with	
                       succession	
   of	
   a	
   single	
   business,	
   family	
   members	
   can	
   move	
   into	
  
       transitions,	
  the	
  next	
  generation	
  felt	
  comfortable	
  approaching	
  him	
                                leadership	
   in	
   the	
   existing	
   business	
   or	
   pursue	
   their	
   own	
  
       with	
  their	
  concerns.	
                                                                                            yearnings.	
   	
   This	
   approach	
   means	
   that	
   any	
   family	
   member	
   who	
  
       	
                                                                                                                      opts	
   to	
   participate	
   can	
   utilize	
   the	
   resources	
   of	
   the	
   family	
   and	
  
       Engagement	
   and	
   the	
   recognition	
   of	
   your	
   family’s	
   Narrative	
   are	
                         their	
   own	
   personal	
   resources	
   (human	
   capital)	
   to	
   explore	
   new	
  
       the	
   fuel	
   that	
   drives	
   longevity.	
   	
   But	
   it	
   is	
   an	
   Entrepreneurial	
                 ventures.	
  
       attitude;	
   utilization	
   of	
   family	
   Resources	
   and	
   facilitating	
   Growth	
                         	
  
       by	
   encouraging	
   Yearnings	
   that	
   sustain	
   family	
   enterprises	
   over	
                             If	
  the	
  same	
  assumptions	
  hold	
  true	
  for	
  the	
  wealth	
  of	
  a	
  family,	
  then	
  
       time	
   (E.N.E.R.G.Y.	
   ).	
   We	
   have	
   come	
   to	
   assume	
   that	
   the	
   challenge	
               the	
  next	
  generation	
  and	
  their	
  potential	
  to	
  create	
  new	
  innovations	
  
       for	
  families	
  like	
  the	
  Kaisers	
  is	
  to	
  choose	
  a	
  successor	
  and	
  maintain	
                  can	
  become	
  the	
  source	
  of	
  future	
  wealth	
  creation.	
  	
  This	
  approach	
  
       the	
   firm	
   or	
   empire	
   that	
   already	
   exists.	
   	
   Since	
   the	
   Kaiser	
   family	
          does	
  not	
  eliminate	
  a	
  family’s	
  concerns	
  about	
  wealth	
  preservation,	
  
       was	
   engaged	
   in	
   multiple	
   businesses,	
   the	
   options	
   to	
   integrate	
                          but	
   it	
   does	
   change	
   the	
   nature	
   of	
   the	
   conversation	
   in	
   ways	
   that	
  
       family	
   members	
   into	
   the	
   business	
   were	
   not	
   as	
   limited.	
   	
   Instead,	
               require	
  families	
  to	
  actively	
  engage	
  with	
  each	
  other,	
  to	
  understand	
  
       they	
  had	
  to	
  deal	
  with	
  being	
  a	
  publically	
  held	
  company.	
                                     the	
   family	
   narrative	
   and	
   how	
   to	
   promote	
   it	
   over	
   time.	
   	
   It	
   also	
  
       	
                                                                                                                      challenges	
  both	
  families	
  and	
  their	
  advisors	
  to	
  make	
  sustainability	
  
       The	
   2009	
   Family	
   Firm	
   Institute’s	
   Goodman	
   study	
   on	
   Longevity	
                           their	
   primary	
   goal	
   and	
   to	
   encourage	
   the	
   yearnings	
   of	
   family	
  
       explores	
  the	
  implication	
  of	
  a	
  shift	
  in	
  orientation.	
  	
  Rather	
  than	
  	
                    members	
  as	
  an	
  investment	
  in	
  the	
  future.	
  	
  	
  
       	
                                                                                                                      It	
  takes	
  ENERGY!
	
  




       ©	
  2011	
  Michael	
  Joyce	
  Properties,	
  LLC	
                                                                                                                                                                                 3	
  

More Related Content

Featured

5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summarySpeakerHub
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next Tessa Mero
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentLily Ray
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best PracticesVit Horky
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project managementMindGenius
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...RachelPearson36
 
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Applitools
 
12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at WorkGetSmarter
 
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...DevGAMM Conference
 
Barbie - Brand Strategy Presentation
Barbie - Brand Strategy PresentationBarbie - Brand Strategy Presentation
Barbie - Brand Strategy PresentationErica Santiago
 
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them wellGood Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them wellSaba Software
 
Introduction to C Programming Language
Introduction to C Programming LanguageIntroduction to C Programming Language
Introduction to C Programming LanguageSimplilearn
 
The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...
The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...
The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...Palo Alto Software
 
9 Tips for a Work-free Vacation
9 Tips for a Work-free Vacation9 Tips for a Work-free Vacation
9 Tips for a Work-free VacationWeekdone.com
 
I Rock Therefore I Am. 20 Legendary Quotes from Prince
I Rock Therefore I Am. 20 Legendary Quotes from PrinceI Rock Therefore I Am. 20 Legendary Quotes from Prince
I Rock Therefore I Am. 20 Legendary Quotes from PrinceEmpowered Presentations
 

Featured (20)

5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
 
How to have difficult conversations
How to have difficult conversations How to have difficult conversations
How to have difficult conversations
 
Introduction to Data Science
Introduction to Data ScienceIntroduction to Data Science
Introduction to Data Science
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best Practices
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project management
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
 
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
 
12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work12 Ways to Increase Your Influence at Work
12 Ways to Increase Your Influence at Work
 
ChatGPT webinar slides
ChatGPT webinar slidesChatGPT webinar slides
ChatGPT webinar slides
 
More than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike RoutesMore than Just Lines on a Map: Best Practices for U.S Bike Routes
More than Just Lines on a Map: Best Practices for U.S Bike Routes
 
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
 
Barbie - Brand Strategy Presentation
Barbie - Brand Strategy PresentationBarbie - Brand Strategy Presentation
Barbie - Brand Strategy Presentation
 
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them wellGood Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
 
Introduction to C Programming Language
Introduction to C Programming LanguageIntroduction to C Programming Language
Introduction to C Programming Language
 
The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...
The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...
The Pixar Way: 37 Quotes on Developing and Maintaining a Creative Company (fr...
 
9 Tips for a Work-free Vacation
9 Tips for a Work-free Vacation9 Tips for a Work-free Vacation
9 Tips for a Work-free Vacation
 
I Rock Therefore I Am. 20 Legendary Quotes from Prince
I Rock Therefore I Am. 20 Legendary Quotes from PrinceI Rock Therefore I Am. 20 Legendary Quotes from Prince
I Rock Therefore I Am. 20 Legendary Quotes from Prince
 

Family Sustainability Article by Inheriting Wisdom

  • 1. Family Sustainability Requires E.N.E.R.G.Y. By Dr. James M. Weiner Published November 2011     “Growing   up,   I   was   aware   that   my   grandfather   was   a   great   man.     resources  that  focus  specifically  on  helping  affluent  families,  such   My  parents,  particularly  my  father,  seemed  to  be  cut  from  the  same   as:   single   and   multiple   family   offices;   attorneys;   accountants;   cloth   and   share   in   the   family’s   success.     Heads   of   state   and   business   investment   and   insurance   advisors;   as   well   as   various   family   leaders  were  frequent  visitors  to  our  home.    It  was  never  said,  but   business  consultants.       with  the  high  visibility  and  the  conversations  about  our  future,  the     expectations   for   us   were   always   implied.     And   to   be   honest   I   envied   Succession   issues,   the   sale   of   a   business   (or   other   liquidity   that  kind  of  life.    Not  just  the  lifestyle,  but  the  kind  of  prominence   events),  estate  and  trust  strategies,  a  death  in  a  family  are  often   that  my  grandfather  and  father  had.”   the  catalysts  for  advisors  to  become  more  involved  in  the  family’s     decision   making   process.     Likewise,   the   inclusion   of   new   family   During   a   recent   conversation,   Henry   shared   his   family’s   story   members   through   weddings   or   birth,   while   joyful   occasions,   with  me.  I’m  not  sure  members  of  the  Next  Gen  would  recognize   pressure   families   to   think   about   the   future.     Each   change   raises   Henry’s   family   name.     Once   as   prominent   as   Bill   Gates   or   Steve   new  concerns,  but  the  transition  of  wealth  or  a  business  is  often   Jobs,   the   surname   of   his   family   lives   on.     However,   neither   the   the   most   significant   event   in   the   long-­‐term   history   of   a   family.     opportunities   nor   the   wealth   accumulated   by   the   family   was   While  navigating  the  way  through  such  moments  of  transition  is   passed  on  to  Henry’s  generation.    One  day  he  awoke  to  the  reality   critical,   it   is   what   happens   in-­‐between   that   guarantees   that  the  lifestyle  that  surrounded  him  as  a  child  was  now  out  of   sustainability.     reach.     Henry   grew   up   with   the   expectation   that   one   day   he     would   find   his   way   into   the   world   of   great   men,   like   his   Lifecycle  events  and  milestone  markers  are  inherently  emotional   grandfather  and  father.         in  nature.    It  is  not  unusual  for  wedding  preparations  to  bring  out     the   best   and   worst   in   families.     Grieving   family   members   It  is  leaders,  like  Henry’s  grandfather  and  father,  who  are  behind   experiencing   feelings   of   sadness   and   anger   that   can   accompany   the   growth   of   nations   and   whose   philanthropic   efforts   have   the   the   death   of   someone   close,   are   faced   with   making   practical   power   to   change   lives   across   the   globe.     On   a   daily   basis,   decisions   in   the   midst   of   that   turmoil.   Devoting   concerted   energy   entrepreneurs   accomplish   their   business   objectives   and   figure   a   focused  on  the  family  over  time  develops  sustainability.    Henry’s   way  around  the  obstacles  that  stand  in  their  way.    From  start-­‐ups   family   is   a   clear   example   of   what   happens   when   this   is   neglected.     to   established   companies,   the   vast   majority   of   these   enterprises   Given   the   entrepreneurial   accomplishments   of   this   family,   it   is   are  family-­‐held.     hard  to  imagine  that  neither  the  family’s  advisors  nor  the  family     itself   were   prepared   to   deal   with   the   issues   that   affect   Given   the   fortitude   and   ingenuity   of   these   men   and   women,   the   sustainability.       challenges   of   sustaining   wealth   across   generations   should,   like     any  other  business  problem,  be  a  challenge  that  can  be  overcome.     Henry   is   Henry   Kaiser.   Imagine   growing   up   in   the   shadow   of   That   said,   private   investors,   as   well   as   those   who   entrust   their   Kaiser   Industries:     Kaiser   Aluminum,   Kaiser   Steel,   Kaiser   Jeep,   financial   future   to   their   advisors,   continue   to   struggle   with   and   Kaiser-­‐Permanente   HMO,   to   name   a   few   of   the   industries   figuring  out  how  to  sustain  wealth  across  multiple  generations.         started   by   his   grandfather.     Henry’s   assumption   that   he   would     benefit  from  the  family’s  wealth  was  completely  reasonable  given   Of   course,   no   one   need   travel   the   path   alone.     Business   leaders   the  world  that  surrounded  him  as  a  child.  As  an  adult,  he  believed   and   their   families   can   draw   on   the   abundance   of   professional   that  he  was  doing  all  the  right  things  to  put  himself  on  the  path  of     ©  2011  Michael  Joyce  Properties,  LLC   1  
  • 2. Family Sustainability Requires E.N.E.R.G.Y. By Dr. James M. Weiner Published November 2011       securing   his   future   at   Kaiser   Industries   and   carrying   on   the   own   voice.     The   most   frequent   concern   we   hear   from   family   legacy  of  his  father  and  grandfather.       members   is   that   decisions   often   seem   to   be   made   for   them   and   it     doesn’t  matter  if  they  are  engaged  or  not.   So   then   what   happened?     One   day,   Henry   was   confronted   with     the   news   that   the   corporation   had   announced   a   plan   of   voluntary   Jay   Hughes   states,   the   unique   family   story   (or   Narrative)   serves   liquidation.     At   that   moment,   Henry’s   world   shifted   and   he   to   connect   future   generations   and   is   essential   for   preserving   realized   that   the   opportunities   he   dreamt   about   would   never   family   wealth.   It   might   be   easier   to   discuss   what   is   not   the   family   come  from  his  grandfather  or  father.  He  was  on  his  own.   narrative.    A  narrative  is  not  the  family  history,  an  account  of  the     great   accomplishments   of   the   founder,   or   a   genealogy   chart.     Consider   the   resourcefulness   and   engagement   that   Henry’s   While   all   these   may   be   part   of   a   narrative   the   best   way   to   grandfather  mustered  to  help  organize  the  consortium  known  as   understand  a  narrative  is  to  think  about  the  story  you  would  tell   Six   Companies,   Inc.   to   build   the   Hoover   Dam   during   the   Great   about   your   family,   containing   messages   and   lessons   learned.   Depression.     In   retrospect,   Henry   recognizes   the   value,   both   Since   this   would   involve   your   perceptions   others   might   argue   financial   and   personal,   that   could   have   come   from   devoting   that  the  story  is  not  fact.       resources  on  planning  the  future  of  the  family.       Family  mission  statements  serve  one  purpose,  in  contrast  to  the   To   illustrate   the   point,   we’ve   turned   the   word   “energy”   into   the   narrative,   which   highlights   the   family’s   many   dimensions.   acronym   E.N.E.R.G.Y   (Engaged,   Narrative,   Entrepreneurial,   Included   in   a   family   narrative   are   the   intergenerational   Resourceful,   Growth   and   Yearning).     An   engaging,   family   perceptions   of   what’s   important.     Family   traditions,   attitudes   narrative   of   entrepreneurial   spirit,   filled   with   resourcefulness,   about   accomplishments,   spirituality,   and   guiding   principles   are   growth  driven  by  yearning  and  passion  encourage  sustainability.   woven   in   the   story   and   serve   to   build   sustainability,   without   When   teamed   with   advisors   who   support   these   characteristics,   them   families   are   torn   apart.     Most   families   believe   that   that   they   families   prosper   and   advisors   build   lasting   intergenerational   have  no  control  over  the  family’s  narrative,  particularly  after  the   relationships.   kids  are  grown  and  gone,  yet  it  is  the  accounts  of  past  events  that     retain  the  connection  to  the  family  and  is  continually  being  built   Let’s   start   with   Engaged.     In   Centuries   of   Success,   William   O’Hare   upon.     A   value   is   communicated   and   a   foundation   is   reinforced.   interviews   some   of   the   most   enduring   family   businesses   in   the   This  guides  the  family.  The  test  of  a  family’s  longevity  is  how  they   world.     All   the   families   interviewed   went   back   hundreds   of   years.     rise   to   the   occasion   when   faced   with   challenges.   For   the   most   In  his  conclusion,  he  notes  that  family  unity  and  a  commitment  to   part,   advisors   do   not   concern   themselves   with   a   family’s   continue   the   legacy   were   the   two   key   elements   that   were   evident   narrative.   in  all  of  the  families  interviewed.           What  does  any  of  this  have  to  do  with  managing  money?    A  brief   Henry   recalls   only   a   handful   of   conversations   with   his   example  is  an  advisor  who  asked  his  client  couple  whether  they   grandfather.    Even  though  he  discussed  with  his  father  a  future  in   collected   anything,   which   is   a   question   most   advisors   don’t   ask.     the  business,  and  even  took  on  a  challenging  work  related  project   Turns  out,  she  was  an  art  collector  and  he  was  passionate  about   for  his  father,  Henry,  like  many  others,  struggled  with  finding  his     his  wine  cellar.    The  family  narrative  for  them  included  their  wish     that  the  next  generation  would     ©  2011  Michael  Joyce  Properties,  LLC   2  
  • 3. Family Sustainability Requires E.N.E.R.G.Y. By Dr. James M. Weiner Published November 2011       learn  the  joy  of  appreciation  that  they  experienced  building  their   struggle  with  the  control  of  a  single  business,  an  “entrepreneurial   collections.     Ironically,   it   was   on   this   basis   that   the   advisor   began   family”   can   consider   a   wider   range   of   options   for   the   to  build  a  relationship  with  other  members  of  his  client’s  family.     sustainability   of   family   wealth.   Rather   than   compete   for   He  found  mutual  interests,  and  when  the  time  came  to  deal  with   succession   of   a   single   business,   family   members   can   move   into   transitions,  the  next  generation  felt  comfortable  approaching  him   leadership   in   the   existing   business   or   pursue   their   own   with  their  concerns.   yearnings.     This   approach   means   that   any   family   member   who     opts   to   participate   can   utilize   the   resources   of   the   family   and   Engagement   and   the   recognition   of   your   family’s   Narrative   are   their   own   personal   resources   (human   capital)   to   explore   new   the   fuel   that   drives   longevity.     But   it   is   an   Entrepreneurial   ventures.   attitude;   utilization   of   family   Resources   and   facilitating   Growth     by   encouraging   Yearnings   that   sustain   family   enterprises   over   If  the  same  assumptions  hold  true  for  the  wealth  of  a  family,  then   time   (E.N.E.R.G.Y.   ).   We   have   come   to   assume   that   the   challenge   the  next  generation  and  their  potential  to  create  new  innovations   for  families  like  the  Kaisers  is  to  choose  a  successor  and  maintain   can  become  the  source  of  future  wealth  creation.    This  approach   the   firm   or   empire   that   already   exists.     Since   the   Kaiser   family   does  not  eliminate  a  family’s  concerns  about  wealth  preservation,   was   engaged   in   multiple   businesses,   the   options   to   integrate   but   it   does   change   the   nature   of   the   conversation   in   ways   that   family   members   into   the   business   were   not   as   limited.     Instead,   require  families  to  actively  engage  with  each  other,  to  understand   they  had  to  deal  with  being  a  publically  held  company.   the   family   narrative   and   how   to   promote   it   over   time.     It   also     challenges  both  families  and  their  advisors  to  make  sustainability   The   2009   Family   Firm   Institute’s   Goodman   study   on   Longevity   their   primary   goal   and   to   encourage   the   yearnings   of   family   explores  the  implication  of  a  shift  in  orientation.    Rather  than     members  as  an  investment  in  the  future.         It  takes  ENERGY!   ©  2011  Michael  Joyce  Properties,  LLC   3