Family Leadership Strategies

17 • Promoting and demonstrating through their own behavior, a policy of candid communication amongst siblings, cousins, and seniors with regard to transition principles Family imperatives A family may consist of one lineal branch with multiple generations, or a broad number of branches including numerous cousins, uncles, and aunts. In family leadership transition planning, a ‘family’ is often defined by its shared economic interests in a common enterprise or source of wealth. In essence, those who have a beneficial stake in the family company or trusts. Many families will, for example, exclude divorced members or those who have sold their enterprise equity interests back to the family. The primary imperatives often cited by family members are: • Family harmony and fairness • Preservation of family values • Inclusion / having a voice in key matters affecting the family • Fairness in ownership and financial interest • Transparency of, and access to, important and timely information • Dividend payouts and predictability of future cash flow distributions • Multi-generational wealth preservation • Public perception, particularly if the family business is closely associated with the family name Enterprise imperatives A family enterprise includes its legal entities, beneficiaries, shareholders, employees, partners, as well as customers. Most often, this includes a business, but may also include the family foundation, family investment company, or family office. When identifying individualswithin theenterprise, it is important todistinguish between primary parties — such as key employees or family members — and Differing motivations and needs