Resolutions to Engage Members of a Family Enterprises

Have you made your resolutions for 2024? Did you know, by definition, that a resolution is a firm decision to do or not to do something? Some common resolutions are to exercise more, lose weight, get organized, learn a new skill or hobby, save more money, or quit smoking. But how many people give up on their resolutions only after one month? The number is 43%, which doesn’t sound very resolute. One of the reasons for letting go of a resolution is that it isn’t a priority.

A priority, on the other hand, is something that is regarded as more important than another. When you develop a list of priorities, you rank them in order of importance to determine which one to focus on first. Typically, 3-5 priorities are a good amount to aim for during the year, but no more than 10. Although a “Life List” is a good idea to have where everything is written down on what you want to accomplish long term. However, annual goals should be limited in quantity.

If you are part of a family enterprise, we have some recommendations for priorities you should consider to begin to develop a Family Strategic Plan. Sure, you have a strategic plan for your company, but did you consider one for your family?

1.      Build a Sound Governance Foundation – notice I did not say to write a family charter. A charter is more like a marathon than a one-year sprint. Start by listing all the items that might be included in a charter, such as why to have a governance system. What is its purpose?

2.      Proactively manage family dynamics – do you currently have family harmony? Great, how do you keep that culture going? What are you intentionally doing to continue the happy family path? If you don’t have family harmony, what needs to be done to navigate toward unity?

3.      Focus on the Family Strategy – if you already have your “Life List, “ how do you plan on achieving all those goals?  Remember, a goal without a plan is a wish. Start laying out your priorities into Now, Later, and Long Term. Determine which resources are needed, who the champion is, and who else is involved. The plan should be organized, so the family has a direction they are working toward.

4.      Invest in Human Capital – this capital consists of the knowledge, skills, and health that individual family members invest in and accumulate throughout their lives. According to Chuck Pagano, “If you don't have your health, you don't have anything.” So if you resolve to exercise, lose weight, or quit smoking or drinking, you are investing in your human capital.

5.      Manage against the Family Balance Sheet – the balance sheet consists of the following assets: Intellectual, Human, Social, Spiritual, Legacy, and Financial capital. Balance that against the family liabilities of external and internal risks such as inflation, transfer tax, additions, etc.

6.      Commit to a culture of Intellectual growth – part of the forms of capital is intellectual. What are you doing today, individually and as a family, to grow your knowledge? This could be through travel experiences, formal education, or reading and listening to books. Intentionally having a growth mindset for all family members is critical.

7.      Have a family meeting – this is not just a dinner conversation but an excellent place to discuss the purpose of a family meeting. What are the goals of the meeting? Some suggestions include communication, education, and the ability to work together in family harmony. If you haven’t had a family meeting before, start slow. In the beginning, it is all about opening communication.

8.      Have a Family Celebration – you may have just finished the holidays, so why think about a family celebration? Think about who might not have been able to attend Christmas. What type of communication, teamwork, and mutual experiences might come from another time of year to get together? What would be the purpose? A family reunion, a 75th-year company celebration, or a retreat for the rising generation?

These are a handful of ideas for family enterprises to consider in ways to engage the family. When doing the planning, make sure all generations are involved in the planning process. It won’t be as meaningful as organizing if they just show up. You are allowing the rising generation to work with other generations on what is important, family priorities.