In order to fully grasp the complexity of the family business, supporting the growth process towards sustainable shareholdership, we work with the three gear model as shown below1:
A wealthy family usually includes 3 components or gears: the private, business wealth (family business) and investment wealth. These gears are interlocked: what happens in one component has a (in)direct influence on what happens in the other. For example, the values and norms that live in the family will have a direct or indirect influence on the family business, the decisions that are made there or investment decisions. When things do not go well in one of the spheres, this will have an influence on the family as a whole and on the sub-spheres. Energy is transferred, as it were, and this can happen with more or less friction or 'sand' between the gears. The three gear model makes it possible to map out one's own unique situation as well as the desired situation across generations.
In order to develop a legal and fiscal planning that is sustainable, the commitment of all family members is needed so that everyone can happily take up his/her role within one or more spheres or gears. To achieve this, you need to know not only what parents and children want, but above all what they think is important, and why. Within our team, working on a well-considered family planning is done in three phases. (1) Preparing the family: preparing the family to talk to each other, (2) Negotiating the familiy deal: discussing and negotiating with the family about what is really important and writing it down in a common compass, and (3) Executing the family deal: elaborating legal and fiscal wealth planning that is embedded in a clearly supported family vision.
We always start from the specific needs of the family at a given moment. This implies we work in a flexible, tailor-made way at the family's pace. Often, we start with a Discovery Lab: this lab takes place in one day. With the help of one-on-one conversations, interactive exercises and a collective dialogue in the family, we explore the concerns that live in the family as well as the priorities of these concerns for the individual family members. At the end of the day, the family collectively determines the next steps of the family (business), which are drafted down in a family compass. This family canvas may suggest the start-up or facilitation of a family council, the facilitation of (a number of) conversations, coaching for individual family members or mediation in challenging and conflict situations. In some cases, it is difficult to get the family all physically in the same place for one day, because they live in different countries or agendas are difficult to match. We then organise a scan and plan, using Zoom or Skype to have individual conversations with each family member before the family canvas is drawn up. On a regular basis, we organise tailored workshops for children and grandchildren about for example active listening, definitions of legal concepts, how to interpret economic balance sheets, or decision-making on a group or individual level.
When several family branches are involved, a weekend focusing on group dynamics can be very helpful and relevant to connect different family members and to get to know each other. Usually, this weekend takes place on site or at the headquarters of the family business. The (grand)children fulfill together a variety of group assignments while cooking together and staying over. The nature of exercises varies greatly depending on the family needs: how to communicate constructively, how to give feedback, team building, leadership, negotiation, getting to know each other’s strengths and weaknesses. When different various workshops are combined into a program over time, we speak of a Family Academy.
