Family Business Blog
Lessons from the Turmoil in the Royal Family
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What lessons are there for family businesses in Harry and Meghan’s split from the royal family?
Whether you are for or against the concept of royalty, in my view the British Royal Family have always been a great example of how to manage a multi-generational family (business).
They have a strong Family Charter (enshrined in legislation) and a clear succession plan. Since he was young enough to comprehend, Charles has known the circumstances upon which he will succeed to the throne. The roles of other members of the family are also clearly defined.
So, what has gone wrong? What can we learn from Harry and Meghan’s recent announcement that they plan to ‘resign’ from the family business?
1. A strong Family Charter is not enough. In the model we use for creating a Family Charter, we believe that there are two pillars that give it strength. The contents of the Family Charter must be imbued into the hearts and minds of all family members. Secondly, there must be the opportunity for renewal. Do we have a ‘set and forget’ Family Charter? Ongoing discussion to keep it abreast of current times and to give the next generation ownership in the agreement is vital. 2. Managing the in-laws can be challenging. Bringing the next generation of spouses into the family and inculcating them with the family’s values is a key task that successful families manage well. As a new family is created at the next generational level, there is a new set of values that the young couple have to integrate and adopt for their own family. How do we ensure that these are consistent with the long-term objectives of the family business? One point of discussion in most families is to what extent do we involve the in-laws. Do we treat them as in-laws or outlaws? Bringing them into the family camp provides the opportunity to mould and influence both the in-law and most importantly, their children who will become the next generation of the family business. 3. In a family business as long and enduring as the royal family, it becomes difficult to break with tradition. How do we, in our family businesses, ensure that we don’t become hide bound by long standing traditions at the expense of innovation, the different expectations of subsequent generations and the pace of social change in today’s fast-moving world? I’m sure that in the ensuing days we will learn more about these recent developments that we can adopt in our family businesses.
Whether you are for or against the concept of royalty, in my view the British Royal Family have always been a great example of how to manage a multi-generational family (business).
They have a strong Family Charter (enshrined in legislation) and a clear succession plan. Since he was young enough to comprehend, Charles has known the circumstances upon which he will succeed to the throne. The roles of other members of the family are also clearly defined.
So, what has gone wrong? What can we learn from Harry and Meghan’s recent announcement that they plan to ‘resign’ from the family business?
1. A strong Family Charter is not enough. In the model we use for creating a Family Charter, we believe that there are two pillars that give it strength. The contents of the Family Charter must be imbued into the hearts and minds of all family members. Secondly, there must be the opportunity for renewal. Do we have a ‘set and forget’ Family Charter? Ongoing discussion to keep it abreast of current times and to give the next generation ownership in the agreement is vital. 2. Managing the in-laws can be challenging. Bringing the next generation of spouses into the family and inculcating them with the family’s values is a key task that successful families manage well. As a new family is created at the next generational level, there is a new set of values that the young couple have to integrate and adopt for their own family. How do we ensure that these are consistent with the long-term objectives of the family business? One point of discussion in most families is to what extent do we involve the in-laws. Do we treat them as in-laws or outlaws? Bringing them into the family camp provides the opportunity to mould and influence both the in-law and most importantly, their children who will become the next generation of the family business. 3. In a family business as long and enduring as the royal family, it becomes difficult to break with tradition. How do we, in our family businesses, ensure that we don’t become hide bound by long standing traditions at the expense of innovation, the different expectations of subsequent generations and the pace of social change in today’s fast-moving world? I’m sure that in the ensuing days we will learn more about these recent developments that we can adopt in our family businesses.
To be updated on the latest developments!