The "shirtsleeves to shirtsleeves" saying is an all too common phenomenon.  Statistics show us that 70% of wealth transfers fail. It was very problematic in history, but even more of a concern with the anticipation of the Greatest Wealth Transfer in history soon arriving. But instead of focusing on the failures, how does the next generation succeed in this transfer?

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.

Schooling is only part of having a growth mindset.  If you have a degree but didn't learn anything, you aren't growing.  I know young adults who spent 5, 6, or 7 years getting a piece of paper only to be left unemployable and in debt.  Growing in knowledge is the objective.  Knowledge incorporates skill, understanding, and acumen.  It comes from learning and experiencing inside and outside a formal environment.  Recognize that the core values of resilience, persistence, and making mistakes are part of gaining knowledge.  Creating a growth mindset in your family must begin with a plan.

To break the cycle of "Shirt Sleeves to Shirt Sleeves" in three generations, as discussed in a previous blog, family businesses and those wanting to pass along wealth must stop the current way of managing money.  A 70% failure rate in a successful transfer of wealth is not good odds.  Financial planning should not begin with wealth advisors but with a family bank structure.

After reading a chapter from Caroline Coleman Bailey's book, "Rooted in Family," I contemplated her chapter, which discussed working for their family business. As a third-generation Gallo family member, Caroline broke away from the family business after an eighteen-year successful career. She decided to find her path in life. But what did that mean?

The chapter's name, a metaphor, “under the shade of the family tree,” struck me as profound. To me, family means everything. A tree gives one root. The older the family, the stronger the tree's roots. We have a black walnut tree outside of our family house, Belle-Hampton, probably over 250 years old. Just like our family history, it is solid and majestic but needs to be nourished and protected to continue to grow. However, an individual branch can be propagated from the long-established shrub.

My passion is hardcover, paperback, audiobooks, Kindle, and new and old books. Books open up the world of knowledge. Books on Family Businesses specifically create an opportunity to learn and enhance the family enterprise and gain what is called Intellectual Capital. Governance, Family Council, Philanthropy, Succession, and NextGen are topics in my extensive library. Learn real stories and life lessons with autobiographies and biographies. Historic books give perspective on life during those times. Here are some of my top recommendations. 

Those majestic trees that have been around for 140-160 years during historical events are called "witness trees." To qualify for the official naming and protection, they must be on former battlegrounds. Although there may have been family "battles" on our property, Belle-Hampton, we have a black walnut tree estimated to be about 200 years old. It had witnessed family events since 1826, when the Main House was first established. As owners, we are the 7th generation raising cattle on the property. The tree has seen the earlier proprietors' births, weddings, and deaths—all of the family celebrations and the workings of the family business. As we construct our 250-year plan, we first look to the witness tree for perspective.

Individuation is a term coined by Carl Jung, a Swiss psychologist, defined as a process of psychological integration. According to Wikipedia, Individuation is a process of transforming the personal and collective unconscious and bringing it into consciousness using dreams, active imagination, or free association to be assimilated into a person’s whole personality. What does Individuation mean for the rising generation?

When I was growing up, weekends and holidays were spent at our family business.  Through that, my parents taught us the value of hard work, customer service, and sound financial practices.  The company became very profitable, which then required some other investments.  My uncle, a real estate attorney, recommended purchasing land and a cottage on a lake in northern Wisconsin.  A beautiful setting perfect for a relaxing family getaway and a chance to bond.  Although I believe in the value of investing in real estate, this wasn’t the best thing for our branch of the family.

How do you preserve life experiences for future generations?  My dad served in WWII in the Battle of the Bulge.  He never spoke about his time overseas except to tell me about his trip to Switzerland after the war ended.  Growing up, my storybook, "Our Leave-In Switzerland,” contained material for a soldier’s introduction to the country.  Pictures of beautiful snow-covered Alps, short biographies of the various accomplished scientists, and the nation's history adorned the pages. My love for Switzerland began at three years old because I listened to the tales about how they remained neutral during a significant war.  Unfortunately, I have so many more questions to ask my father about the time he served, but they are lost for eternity since he passed away.  I am now passionate about preserving stories for other families by preparing advisors with good questions and teaching them good interview techniques.

As of January 10, 2021, eighty percent of New Year’s Resolutions failed. If you are basing real change on a calendar date, you are sure to fall into those statistics. A resolution, priority or whatever you call your goal, needs to have real meaning. It is the “why” that is important to the achievement. Although you might have a heartfelt commitment to change, here are some suggestions to increase the probability of success.

On December 21, 2020, the Christmas Star was visible to those who had a clear sky. Those who did not have the opportunity to view the astronomical phenomenon, due to cloudy skies, light pollution, or smog, still experienced the feeling of hope for the future. Even if the sky was not clear, the guiding light in the direction of the future was recognized. This event only happens once every 800 years, but the North Star is used as an anchor in the sky guiding us toward a purposeful destination every night. It is the same with a vision statement, which describes what dreams we want to achieve long term thus giving direction toward realization. The vision should be visible daily through multiple channels, used to engage family members or employees and to see the “Greater Good” the vision creates.

When my husband first bought his engineering company, our three boys had no interest in being part of the organization. Only one was studying engineering, but he never aspired to go into business with dad. The other two also had different thoughts on their career trajectory. Although annually we set our goals for the next one to ten years, time and time again in everyone’s carefully laid out life plan, nobody described any role for being part of the family business. My husband continually pointed out the oversight, but I wondered how could we encourage family members to get involved with the family business?

My dirty little secret is that I am a book hoarder. Amazon is my go-to place for impulsive orders to collect literature. Every Saturday, we receive the Wall Street Journal which lists the top books by fiction, non-fiction, and business. Systematically I go through the list to investigate the topics which might be of interest. Although I lean toward non-fiction, The Traveler’s Gift and Where the Crawdads Sing are amongst my favorite in the fiction category. Completely out of my typical genre is The Name of the Wind, recommended by my son, which turned out to be thoroughly captivating. My sister also wrote a book, The Scent of Death, historical fiction, which I couldn’t put down and read in one sitting. Without going into details about fictional best sellers, I will focus my recommendations by subject to include business books, family business books, books teaching values and books created by a family member.

When thinking of inheritance, typically the thought revolves around money or possessions. Designing a successful wealth transfer tends to be the conversation with financial advisors. Insurance companies might ask about high worth assets to provide adequate coverage for posterity. But if you want to transfer values and a shared sense of purpose to future generations, you need to design a legacy plan which would consist of a Vision-Mission-Core Values statement, traditions, family education, and a collection of stories.

In school we are taught that the shortest distance between two points is a straight line. Even when running marathons you learn about running tangents, running from one curve in the road to the next using the shortest possible line. Mathematically those are accurate strategies, however, it doesn’t necessarily apply in life. When we design our life plan, we presume we should take the straight path toward our dreams. But in reality, it is the meandering path leading to the destination which will be the most meaningful. Why? Because that journey will be filled with interesting, unfamiliar experiences as well as surprises along the way. Don’t become too focused on the getting there as fast as you can just to check off a completed goal. Instead, take time to recognize the small steps as well as the big ones. Enjoy the missteps and failures. Stop and celebrate moving the flag toward your dreams.

Among the wide range of hobbies or interests some of us spend time on, my passion is collecting inspirational quotes. They can motivate, inspire and encourage with a “call to action.” Scientific research has shown that an inspirational quote can invigorate us to continue through the grind of tough work. As a business family, creating unity of purpose can create a close bond amongst members. Quotes can inspire by making you laugh, by being a life lesson or by promoting core values.

Life is hectic with day to day activity distracting families from their business educational goals. The ability to organize and schedule a family celebration or family council meeting is only part of the challenge on the road to educational awareness and proficiency. Determining what areas need further development is a continuous process which needs monitoring for continuous improvement. With the objective of having your business family knowledgeable in a variety are areas such as governance, finance and history, how do you seamlessly continue to evolve from year to year, generation to generation?

Entrepreneurship is defined in the Oxford dictionary as “the activity of setting up a business or businesses, taking on financial risks in the hope of profit.” Other Google searches led to the Wikipedia definition as “entrepreneurship is viewed as change, which may include other values than simply economic ones.” George Washington was described as the first entrepreneur in Virginia with his revolutionary farming operation viewed as a business. But it was Benjamin Franklin who is ultimately considered the first in American entrepreneur described as “a very savvy businessman who knew how to commercialize the fruits of his fertile mind.” Another great would be P. T. Barnum with “The Greatest Show on Earth,” which is a favorite story of mine. He changed modern advertising. This repeated theme of change intrigued me. Most people resist change, but it seems to be the nature of the entrepreneurial spirit to embraces it.

I have always been a fan of history, however, with the current state of affairs, I started to contemplate how our core values may change through the times. After HBO Max decided to remove Gone With The Wind from their selections because they wanted to add “historical context”, my curiosity began. At first blush, I assumed a value is a value, but after some reflection, I concluded that the interpretation of that value can be a reflection of the changing times. Our family has determined our core values to be Family, Integrity, Knowledge and Perseverance. Let’s take a historical perspective on each one to see if they have evolved through the generations.