Ben, the founding father of his family business, has always gone with his gut when making tough choices, and it’s served him well. But his adult kids, with their MBA’s and insistence on analytics, numbers-crunching, and the market, are trying to put the brakes on him – and he wonders if they’re so risk-averse they’ll be unable to take charge when the time comes for him to retire.  “You’ve got to take risks if you’re going to succeed,” Ben thinks. “I’m afraid to think what this place would be like without me.”
 
His kids worry that his attitudes are out of sync with the modern world where things like cash flow projections, investment alternatives, the current state of the market, and the future of this industry have to be considered. They’ve got a lot at stake too – too much to just roll the dice the way their father would, even if it might mean tremendous growth for the company. Their lifestyles and his are pretty good already, and they don’t want to be married to the office like Dad has always been.

 

Now what? Ben and his kids are good candidates for a family business meeting to reflect on some longer-term personal goals to be followed up with strategic planning for the business. Their agenda could include:

 

1. Discussion of long-term goals and desires for the principals and their families. What kinds of lives do they wish to be living 5, 10, 15 years from now?

 

2. Family members should discuss their financial goals and whether they wish to build wealth or preserve wealth.

 

3. Family members should talk about their tolerances for risk, while acknowledging their responsibility to the needs of the business so that future business opportunities can accommodate the needs of all.

 

4. A process needs to be established for decision making around key issues. For these questions, who are the decision makers? Does anyone have the power of veto?

 

Tradition dictated that family must serve the business in order for the business to serve the family. But without a clear understanding of the individual needs of family members working in the business, it’s hard to come up with effective strategies that are best for the family and the business as well.