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FBRC Development Process

Family Business Resource Centre Development Process

In our role as family business facilitators we are more often than not approached by families who are having difficulty dealing with a specific issue.
It could be that transitions are imminent, or that the boundaries between the family and the business may be blurred, communication between family members could be problematic, or they feel that the time is right to formalise understandings in a Family Charter.
We find however that dealing with these issues is not an end in itself but the outcome of a process. Invariably, the issues at the root of the request for assistance, is the outcome of decades of family ‘stuff’, a lifetime of relationship issues.
In order to produce the desired outcome we believe that we need to guide the family through a three step process.
STEP 1. Build the future on sound foundations
STEP 2. Develop a common uniting vision for the future based on the families values
STEP 3. Ensure that there are appropriate governance structures in place for both the business and the family
  • It involves -

  • having a clear understanding of the outcomes you are looking for as a family (as identified in Stage 1)
  • developing a plan appropriate to your specific needs using the above process as a guide
  • agreeing to a time frame
  • entering into a monthly retainer based arrangement.

STEP 1 The Foundations – Trust & Communication

'Trust is the hardest thing to find and the easiest thing to lose' Unknown
The starting point for delivering the desired outcomes is to have a sound foundation built on trusting relationships and open, honest and constructive communication.
If there is no (or a low level of) trust between family members, then it is very difficult for family members to successfully negotiate the complex issues that a family business must deal with.
Building trust has been compared to building the balance in your bank account. It takes many deposits over a long period of time to create a high level of trust, yet it can be destroyed very quickly. It’s often said that it is impossible to restore trust once it’s been lost. In my experience, that’s not the case, but it is difficult to repair. The bottom line is that if all parties really want to, we’ll find a way.
Similarly, if people are not able to have productive conversations about what we refer to as the ‘undiscussables’, if there is a lot of ‘tap dancing’ around the real issues, or discussions are acrimonious and unproductive, the ability to reach successful agreement is hampered.
So to work with a family successfully our first step is to assess the quality of both trust and communication and if they need improvement, develop strategies appropriate to their individual circumstances

STEP 2 Creating the Future – Vision and Values

‘If you don't know where you are going, any road will take you there’. Lewis Carroll
If a business does not have a vision for the future it’s difficult to succeed. You can imagine the chaos that arises in a family business if each member is striving to achieve a different goal.
This step is about identifying what each family member wants to achieve personally, and finding the threads to create a common, uniting vision for the family in business, based on the families’ values.
In many instances the business will have developed a vision as part of its strategic planning process. The vision for the family in business will be slightly different. It’s not solely about the business. Here we are creating a vision for what the family as owners and participants in a business wants to accomplish.
This is the critical step that creates energy and commitment. Having a common vision can also provide the reason to put up with differing personal styles and can therefore assist with communication and the inevitable tensions that arise in a family business.

STEP 3 Governance Structures – Business and Family

‘A building without a sound structure collapses in the first storm’
This step is about creating a framework for sound governance of both the business and the family.
Business governance is about ensuring a clear definition of the roles of the shareholders, directors and management and how they interact. There is a lot written on the subject and in theory it isn’t difficult to set up and run. The challenges however often arise in a growing family business where the roles overlap with the family dynamic.
Governance of the family side of the family business equation is quite a new concept to many. It involves creating a forum for dealing with business issues that impact on the family in a forum outside the business.
We find that in the process of setting these sound foundations, many issues are invariably cleared. Most importantly we have set the framework and helped the family develop the skills to address any issues that its faced with in the future
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