Family harmony has not been achieved and conflict has erupted within the family. The likelihood of wealth compounding across generations has now significantly reduced. Efforts should be directed to restoring family harmony before moving forward with your succession plans.
Active Knowledge Question:
What steps are you taking to underpin continuing family harmony?
Danger: 5/12 – Volcano – Fiery Relationships and Conflict
A key goal of any succession process must be family harmony. Without harmony there can be little chance of compounding wealth across generations, as conflict between family members will destroy family wealth.
To build and sustain harmony over generations is not an easy task. There must exist an opportunity for contribution and individual growth for family members and a real sense of fairness must exist.
Excellent communication is a foundation of harmony but there must also exist a very clear process to succession so that all involved understand not only the process but also the decisions being made and the basis of those decisions. Conflict often arises from a lack of knowledge and second-guessing what is being done and why. Remove this doubt and speculation and you are well on the way to building harmony.
A cold hard look at family relationships and dynamics is also necessary in seeking to identify what and where sensitive issues may exist. Once identified, proactive steps may be taken to address these so that they do not become a burning issue that erupts at a future date.
Family harmony must be created and sustained even in the happiest of families during the succession process; it is unlikely to occur by itself.
In the Land of Legacy, fiery relationships and conflict must be settled if a legacy is to endure and often these conflicts are themed around who is in control and are quenched through a robust and equitable governance structure.
Quotes From Travellers:
“I would have initiated family meetings years ago” – From A Family Business in United Kingdom.
“Get succeeding generation involved in financial literacy & decision making earlier” – From A Family Business in Canada.
The Twelve Dangers
There are many dangers that the traveller must be wary of and keep a close eye out for. Not only must they avoid these dangers but be proactive in protecting against them.
Part 5 of the series: 12 Dangers To Be Avoided In Succession
An entirely new level of performance.
Want to become a part of the Entrepreneurs+ Community and learn how to make your business competitively fit? Join now.
All the best in the success of your business,