Imposing restrictions on the next generation usually backfires. It’s better to have honest conversations today.
You have built your business empire and all the trappings that go with success and wealth. And some of those businesses or trappings can hold real significance to you. It may be the first business you started, a property you started that business in, or may even be the family home.
The meaning and importance are real and you want the next generation to carry that forward, but they’re not hearing you. So maybe you will just lock it down so they have no choice but to act in accordance with your wishes.
We all know the expression that ‘you can’t rule from the grave’ but that doesn’t necessarily stop many from trying. My advice is to act with caution in locking certain actions in stone.
It does really turn on what you are seeking to lock in stone as to whether it will be effective or not. And by ‘effective’ I don’t mean that your wishes are enforced, but rather what effect it has on the cornerstone goal of succession – ‘enabling the compounding of wealth from generation to generation while ensuring family unity, individual growth and a sense of contribution’.
The keyword here is ‘enabling’ and often when we seek to lock the future in place, we, in fact, do the opposite to enabling. We create a division that progressively drives the family apart, causes disunity and ultimately a loss of wealth.
In these instances, don’t think about the asset or intention, for example, ‘I always want the family house retained in the family’. But rather consider what you are actually trying to achieve through your actions. Again, for example, in the case of the family home, your reasoning is probably around the anchor that the home represents to the family and your desire for family unity.
So the discussion you should have with your family is how you believe the family home serves as an anchor to family unity, and that you would like to see it preserved in that way for future generations. The impact of that action can then be considered in the wider context of succession, how it will impact all family members now and in the future, and what needs to be done to ensure it does not unravel family unity in the future.
Better to have active discussions, find and agree upon solutions today, rather than impose a potential problem in the future.
Active Knowledge Question:
Is there anything that you think you may need to impose on the future generation to ensure your wishes are met?
Schedule a family meeting now to discuss this matter.
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All the best in the success of your business,
Richard Shrapnel
