Keystone Meta-Framework: Stewardship and Resource-Based View

The concepts of stewardship theory are divided into individual and organizational dimensions, each with three subdimensions. Originally introduced within the management literature, the theory was later contextualized to family-owned businesses. But the concepts have deep roots in the psychology literature, and going back to that core is enriching, particularly for the individual aspects of these Continuity Canvas plans. In this context, overlaying your interpretation of the previous generation's stewardship behavior on your own can be a useful exercise. For example, though you have no doubt heard ad nauseum what your forebears did that was so “amazing,” take the time to think about these narratives using the individual aspects of stewardship. Think about their motivation, what drove them to succeed. It was more likely that which drove them to survive. This would certainly point you to understanding that their motivation was intrinsic rather than extrinsic. Then, revisit some of the stories about their “leadership” style. You have probably heard the stories a thousand times and read the family and business annals, but think about how they almost definitely saw the business as an extension of themselves. And how do you think they used power? More than likely, they did not emphasize positional power, but wielded personal power. Then, contemplate how you want to be remembered by comparing these deep-rooted behaviors with your own. This critical exercise moves you closer to the cornerstone objective of this planning for continuity process, which is developing your own philosophy of stewardship.

Parallel this line of thinking with understanding that the values that are embedded in you, your family, and by extension your business activities, are resources that are valuable and hard to imitate. By taking stock of these familial resources, you will truly be able to appreciate your forebear's legacy.

Familial Meta-Framework: A Commitment to Us

Having a commitment to us, to be meaningful, requires an understanding of “us.” This is housed in the stories that make up your rich family-in-business narrative. However, “us” for you is not the same as “us” for others, and this must be acknowledged. But it rarely is. Your “us” is different from your cousin's “us” because though, in a third-generation example, your parents may be siblings, they both married someone outside your family. So, attempting to establish with significant granularity a definition of “us” will be a fruitless exercise. But establishing in broader terms what it means to be “us” is a pursuit that best-practice families embrace. Here's the challenge: being too broad is pointless (results in platitudes that could apply to anyone) and being too narrow is meaningless. But it is a conversation that has to happen, and the talent development planning process is a good place for it.

Individual Meta-Framework: Altruism

This is how altruism was defined in the servant leadership framework:

Altruistic calling (altruism) describes a leader's deep-rooted desire to make a positive difference in others’ lives. It is a generosity of the spirit consistent with a philanthropic purpose in life. Because the ultimate goal is to serve, leaders high in altruistic calling will put others’ interests ahead of their own and will work diligently to meet followers’ needs.

A repurposing to understand the history and the legacy that form the foundation for continuity, and your individual philosophy of stewardship, could look like this:

Those who have led our family of families up to this point have done so because of their deep-rooted desire to make a positive difference in others’ lives. I am one of many who have benefited from this desire. I am determined that their generosity of spirit lives on through me and, to the extent I can influence, those who follow me. Just as putting others’ interests ahead of their own was a signature characteristic of my forebears, this too will guide my behavior and decision-making.

Generational Meta-Framework: Learn our Family Business

So much needs to happen in this second L of the four Ls framework, as has been stressed throughout this book. For the purposes of this dimension of the successors’ talent development plan for continuity, whether you are positioning yourself for an operational role in the business doesn't matter. You need to learn your family business. I trust that by now you know the sentence that needs to be known by heart (learn the value of values, keep the philosophies but not the detail, in order to continue differently). So, take the time to interview those who hold the stories…again. Why? Because the first hundred times you heard them, you may not have been ready to listen. You will regret not having spent the time with the story-keepers when your grandchildren sometime in the future ask you to talk about your grandfather, for example. Do it for your kids’ kids.

Tactical Meta-Framework: The Steward

As you should recall, earlier in the book we added the word “steward” to each of the labels for constituents in the three circles framework: family, owner, manager. And I've woven that concept throughout the subsequent narrative. To deepen your understanding of what being a “steward” means, consider that the concept of intrinsic motivation is arguably the key driver of what distinguishes individuals committed to family business continuity. Because it is intangible, intrinsic motivation is hard to define. It comes from within. Moreover, being difficult to define makes it hard to teach. Like many of the frameworks here, it needs to be interpreted. It is not something that can be taught in business school. In sum, if the stated (or implied) intention is to perpetuate, there must be an appreciation of what stewardship means, and that relies on an interpretation of intrinsic motivation.

A second dimension of the individual component of stewardship relates to how those involved identify with the business. In other words, stewards see the business as an extension of themselves. As one sixth-generation family leader shared, “In my experience, those genuinely serious about a role in their family business don't see it as a job, nor a career…it is more akin to a vocation.” In contrast, another leader on a separate occasion reminded me that “ability is thicker than blood,” reinforcing that increasingly complex businesses require well-equipped stewards.

The third dimension relates to how stewards use power. The steward doesn't rely on positional power to engage stakeholders. They use personal power. Titles, further, rarely matter for stewards. A sense of entitlement is the enemy of continuity. Stewards who have forged the path to the present appreciated early that they needed to work harder than their nonfamily colleagues because, unlike the family member steward in many cases, they earned their job.

Fundamental Meta-Framework: Benevolence

All four trust dimensions form the foundation of the historical story, the values, and the subsequent legacy that must be understood as part of successors’ talent development. Benevolence correlates strongly with the altruism dimension included earlier in this section. Use benevolence as the key to open the “trust box.” Ask yourself this simple question, “What role did benevolence play in my forebear's journey?” Using trust to drive your thoughts and curiosity, ask about the role of trust within their business, within and between their family and ownership system, and between and among other stakeholder systems. This stream of inquiry will be highly fruitful. Use trust questions, also, to elicit stories from senior enterprise members. This will add significantly to the way you look at the past. Try it. Include it in your own philosophy of stewardship. Be specific, as it is central to all else.

Keystone Meta-Framework: Economic

Living by the notion that “there is a business component to everything” is a good way to appreciate the need to plan for a meaningful role in the family business system. The economic dimension of the dual logics framework, moreover, focuses the lens on the need for the business activities to perform well. But there is also an economic perspective in the family activities, one that is often overlooked. One way to understand this is by considering that an executive role in the business requires a C-Suite skill set and an “F-Suite” mindset (family-oriented), while a senior role in the family requires an F-Suite skill set and a C-Suite mindset. I elaborated this thinking in a 2017 Kellogg Insights article and share it verbatim here:

In addition to C-Suite capabilities such as development of sound business, financial, marketing, and operations strategy and tactics to drive profitable growth, executives need something else as well, something critical: an F-Suite mindset.

Here's what I mean by that. An F-Suite mindset includes the virtues inherent in family businesses: long-term vision, community engagement, a sense of legacy, and clear values. The most effective leaders not only understand these deeply but harness and implement them across every area of the business – from strategy, to hiring, to culture – thus, preserving the founders’ vision and values while ensuring that the business can deliver on its mission and strategy.

The two types of skills and mindsets work in tandem in family business: the C-Suite needs to understand the nuances and idiosyncrasies of the family's tradition and values, and the F-Suite must recognize the importance of driving growth. In other words, the same mindset and skill set approach can be applied to those who are not involved in leading the business but assigned leadership roles in the family. You just flip the terms and consider that those in the F-Suite require an F-Suite skill set and a C-Suite mindset. That is, they require the skills to manage familial relationships but need to be aware of the challenges faced by those making the business decisions (related to growth, strategy, and the like).

More specifically, when a family business transitions from the founders to the second generation, it's critical to use the established purpose (typically emphasizing long term over short term), values, and culture of the family or business to inform the development of strategy and tactics going forward, that is, the F-Suite must inform C-Suite decision-making. At the same time, operating well and growing as a second-generation business, typically with larger-scale targets and expectations, requires evolving C-Suite capabilities on top of an F-Suite mindset.

In short, while the skills needed to work at a family firm such as SC Johnson or a nonfamily corporation such as Proctor & Gamble may be similar, the mindset required will be very different, with incorporation of an F-Suite mentality critical for the former.

Moreover, recognizing the importance of the F-Suite and mastering the related mindset will become even more important in managing family businesses in the twenty-first century, as family-owned firms face rising challenges related to business environment factors including competition and customers.

So, what that effectively means is that financial literacy is a prerequisite for roles in the business (en route to the C-Suite) or the family (as part of the F-Suite). As part of that literacy, an understanding of how to create and capture value is useful when orchestrating what needs to be done to develop talent. Having exposure to this helps to contribute to conversations related to present business activities and, perhaps more applicably, to acquisition targets. Regardless of the organizational life cycle stage, understanding how to create and capture value is the purview of all continuity modelers. Recall, the four ways to capture true value are through different types of engineering: specifically, operating engineering, financial engineering, governance engineering, and multiples arbitrage (market timing, multiples expansion). Everyone should acquaint themselves with these.

Familial Meta-Framework: Big Tent Executive or Employee

The big tent framework is all about pathways to contribute meaningfully. A prerequisite for involvement as an executive or an employee is financial literacy. Here, this refers to the idea that you are an executive or employee of the assets that you currently own or will own in the future. If so, there is no point in avoiding the fundamentals of finance. I often hear family business members share that they do not understand “the numbers.” That's a myopic view. A simple start is appreciating that financial competency does not have to be at CPA level. Everyone needs to know the basics. The reason is that, ultimately, they will move up the ownership totem pole and should be prepared as early as possible for associated responsibility. In short, avoid understanding the basic financial indicators and dynamics at your peril. It just doesn't make sense if you are managing a considerable portfolio of assets and investments that you would not take the time to make sure they are fundamentally healthy. In fact, treat this priority with the same care as you do for your own health. It is that important.

Individual Meta-Framework: Self-Imposed Test

The four tests framework reinforces the need to develop financial competency. The thinking here, again, is that at some point in time an independent, objective evaluator will be asked to establish whether you have the all-round capacity to perform a particular role. The specific role doesn't matter. What matters is that this process will uncover your Achilles heel, assuming you have one. Put another way, if financial understanding has been something that you have been able to avoid, intentionally or circumstantially, there will come a time when this counts against you. The thinking behind the four tests is the idea of taking a proactive, strategic approach to your career development. The example of the need to address a shortcoming related to financial literacy is a strong application of this framework's richness. Developing the skills proactively will negate future disappointment. This is equally applicable to those who may have the requisite financial skills but lack other capabilities such as management or marketing or logistics. Arrange to secure at least a minimal understanding, because this self-imposed effort will pay dividends. And by dividends, I mean broadly that this will facilitate an increase in confidence and preparedness to contribute meaningfully to the stated goal of continuity.

This is as a good a place as any to further introduce the need to understand how to create and capture value. Recall in an earlier section (see, the decline dimension of the five-stage life cycle framework in the fundamental meta-framework) four ways to capture value were tabled. These were through different types of engineering, specifically operating engineering, financial engineering, governance engineering, and multiples arbitrage (market timing; multiples expansion). This is important to know for anyone involved in the business, no matter their role, and deserves elaboration. The easiest way to make this real is to give the example of when a decision is being made whether to acquire another business. Having an appreciation of how value can be captured (i.e. either through operations, financial restructuring, addressing governance shortcomings, timing the purchase, or a combination of one or more of these) is a fundamental insight everyone involved with the decision should possess.

This understanding is necessary but not sufficient. As individuals evolve up the ownership totem pole, they will need to evolve their understanding of finance. This sounds more daunting than it actually is. Here is my attempt at capturing the basics of finance in one short paragraph, which should hopefully motivate readers to embrace becoming more familiar with what is, and for some has been, previously a no-go zone.

Value is created through the generation of future cash flows at rates of return that exceed the cost of the invested capital. In other words, the combination of growth and return on invested capital (ROIC) drives value and value creation. A corollary to this is that anything that doesn't increase cash flow via improving revenues or returns on capital doesn't create value. Another cornerstone suggests that the value of a business depends on who is managing it and what strategy they pursue.

Generational Meta-Framework: Affordable Loss

The applicability of Sarasvathy's effectual reasoning approach is understanding how entrepreneurs’ thinking and behavior has relevance to the need to take a broader view to financial fundamentals. Taken literally, affordable loss relates to not being overly focused on how much will be made but rather to emphasize what can comfortably be lost. Taking a broader perspective, the message could be interpreted as the need to be consistently conscious of what you are prepared to risk. At stake in continuity terms is the long-term health of the business and family. Knowing that taking managed risks is fundamental to financial success, the ability to balance risk and return is requisite. What you can afford to lose, or what is at stake, as it relates to individual investment decisions and how these collectively impact the bigger picture is something you must carefully consider.

An example of this may be when turbulent financial times happen – and they will – and more capital is required to bolster balance sheets, so there could be a movement to sell some assets. Yet, some of these target assets have meaning beyond their book value. They may have sentimental and historical value far beyond what they would fetch in the market. This then becomes a part of discussions around how to quarantine assets and do some scenario planning about risk, with the full understanding of what you can afford to lose. While this may seem abstract in thinking terms, it is a good example of how these frameworks could and should be used. Exercises like this one yield broadened and deepened thought. Commit to them. It is required to construct your Continuity Canvas. If it were easy, I would simply offer a how-to book and let you color it in. It isn't that simple.

Tactical Meta-Framework: Financial Perspective of the Balanced Scorecard

The balanced scorecard, or BSC, framework shows up repeatedly in this book for a reason. This excerpt of a publication I co-wrote with Moores (Handbook of Research on Family Business 2006, p. 198) helps bring to light the role of financial perspective as a lag (or lagging) indicator and how this needs to be complemented by the other lead indicators. We also discuss tangible and intangible indicators:

Originally developed as a performance measurement tool (Kaplan and Norton, 1992), the BSC has evolved into an organizing framework, an operating system, and a strategic management system (Kaplan and Norton, 1996). As exclusive reliance on financial measures in a management system is insufficient, the BSC highlights the difference between lag indicators versus lead indicators. Financial measures are ‘lag indicators that report on the outcomes from past actions’ (Kaplan and Norton, 2001, p. 18). Examples of lag indicators are return on investment, revenue growth, customer retention costs, new product revenue, revenue per employee, and the like. These lagging outcome indicators need to be complemented (supplemented) by measures of the drivers of future financial performance, that is, lead indicators. Examples of lead indicators are revenue mix, depth of relationships with key stakeholders, customer satisfaction, new product development, diversification preparedness and contractual arrangements.

The BSC also addresses the measurement and management of tangible versus intangible assets. Examples of tangible assets include items such as inventory, property, plant, and equipment (Chandler, 1990) while examples of intangible assets are ‘customer relationships, innovative products and services, high-quality and responsive operating processes, skills and knowledge of the workforce, the information technology that supports the workforce and links the firm to its customers and suppliers, and the organizational climate that encourages innovative problem-solving and improvement.’

(Kaplan and Norton, 2001, p. 88).

Fundamental Meta-Framework: Renewal

I include the life cycle stage of renewal here as a reminder that continuity is dependent on the ability to renew. Indeed, complacency is another enemy of continuity modelers. An innate restlessness is required to constantly question business models. This restlessness involves continuous probing to challenge the status quo. Broadening financial metrics from the typically accepted is one way to do this. This involves being prepared to make brave decisions (revisit the command dimension of the four Cs).

Those who study dynamic capabilities share important perspectives related to renewal. They suggest that leaders need to “eat their business model” at times. More specifically, transformation and renewal happen more regularly today than at any time in history. Anticipating change, challenging current beliefs and mindsets, seeking to understand patterns from multiple data points, making (asset-light) commitments with incomplete information, ensuring tough issues are surfaced to pinpoint misalignment, and staying agile and able to course-correct quickly if off-track represent more than a leadership or management responsibility. They are fundamental to hope of continuing. These are the sorts of bullet-point commitments and reminders that continuity modelers make for themselves and ensure in others, no matter their role in the business. Build this into your philosophy of stewardship. It is meaningful…and powerful.

Keystone Meta-Framework: Three Circles

Each of the three circles – family, owners, managers – must be governed. This is the focal subject of one of the other plans here. However, governance role preparation is included as a perspective for successors’ talent development planning for continuity because governance roles will likely become increasingly prominent as the business evolves and the family grows. Stipulating that an integral part of developing successors’ talent is preparing individuals as governors signals that an operations role in the business is an option, but not the only one (think big tent). Families that get that message right, signal that it is eventually likely that individuals will continue as governing owners. That comes with a whole suite of challenges that we will discuss in Governance Planning for Continuity.

Familial Meta-Framework: Business or Family Governor

The big tent encourages meaningful engagement through pathways that ensure individuals are ready, willing, and capable to contribute. If you are genuinely committed to continuity, you should never tire of repeating this line.

When an offspring declares they are not remotely interested in joining the family business – as many will – that should not be a cause for concern if the big tent framework is in play. A parent who has planned for this, will refer to the mantra and reply, “An operations role in the family business has always been an option for you, but certainly not the only one. It has suited me, and suited your grandparent, but we understand your desire to pursue your own dream. However, there are other meaningful ways for you to contribute to the continuation of this proud family legacy. This could be either as a business governor or a family governor. I encourage you to consider these when the time comes. There are initiatives in place that will prepare you for these roles. Thanks for being honest with me.”

Enough said!

Individual Meta-Framework: Governor Exit Style

Learning to let go is hard. Exiting to a role as a governor may be a way to reduce the burden of departing a significant leadership role in the business. In these instances, titles typically matter. For many, it didn't really matter when they occupied the CEO or Managing Director position, because everyone was aware of their prominence. However, stepping away from such a prominent role may require retitling. This is not abnormal and should be encouraged. Many is the time when a stated “titles have never mattered” philosophy gives way to “I'd still expect to be Chairperson…or non-executive Chairperson…or…” The options are many and should be discussed thoroughly.

In short, having meaningful roles matters, no matter your life stage. Tokenism will only lead to frustration, and even sabotage. That's because busy people need to be kept busy doing something, or they will meddle. Again, not an abnormal problem but a problem just the same. As a solution, one leader titled himself Emeritus Chairman and G3 Mentor and was charged by the Board, which included family and independent directors, to develop and implement a mentorship program for his 11 grandchildren. He submitted a proposal and was allocated funding. It has been a delight for me to witness this initiative unfold. The mentees are given clear guidelines of their expectations, and the mentor is making real, ongoing meaningful contributions to the family and the business.

The key idea here is to interpret broadly what it means to be prepared to govern. Innovation in governance distinguishes a business-owning family that is prepared for continuity from one that is rule-constrained and not prepared to design structures to fit with their “personality” and situation. Some people make governance more complicated than it should be…and that approach will likely deter rather than encourage engagement and participation. And note that this refers to more than just the Continuity Model Generation!

Generational Meta-Framework: Cousin Consortium

The four ownership stages signify the evolution of families in business from founder–owner, to single-successor owner or sibling partnership, to cousin consortium. This depiction highlights that radical change occurs twice: once between the founder–owner and the sibling partners, and again between sibling partners and the cousin-consortium owners. Incremental change occurs if the founder–owner transitions ownership to a single-owner successor, and also as the cousin consortium matures and evolves to subsequent generations. Best practice indicates that the sibling-partner owners understand that they need different structures and systems than those that were suitable for their parents and that the sibling partners also appreciate that what suits them is not going to suit their offspring's consortium. Understanding this simple but predictable trajectory is useful in proactively preparing individuals for governance roles. Ideally, once the sibling partners have honed their governance roles and skill sets and see the benefits of the accountability and transparency that good governance brings, they will work collaboratively with advisors and members of the cousin consortium to develop the new model. Think “put in place the protocols before they are needed” from the four Ps framework. The message here, the good news, is that if they get it right, there will be ongoing incremental change as people are rotated into the multiple governance positions established to govern the family, the business, the ownership, and the foundation. More on that in Governance: Governance Planning for Continuity.

Tactical Meta-Framework: The Governor

I captured the sentiments pertinent to what it means to be a governor in the book I co-wrote with Ken Moores that introduced the thinking behind the heterogeneity frameworks. A revisit to this content yielded the following items that anyone preparing for a governance role should consider:

• To govern competently requires a genuine understanding of what it is you are governing and for whom.
• You need to consider yourself concurrently responsible for governing two critical things: your forebears’ legacy and your offspring's destiny.
• Making decisions as a governor calls for a different modus operandi than that of being a manager of the business. The mindset and skills required are different.
• Decisions are made with less-than-perfect information, sometimes far less.
• The best way to make a decision is to first craft a thesis; then spin this around deliberately to create an antithesis and with these both in play synthesize the two alternate viewpoints.
• Being proficient at “artful procrastination” helps.
• Never make a decision before you have to.
• You need to develop a tolerance for ambiguity.
• Decision-making should be collegial.
• A key skill to master for successful governance is the ability to persuade and be persuadable. To persuade requires a fine-tuned capacity to provide a compelling argument that is aligned closely with the agreed-upon strategy and embedded firmly in the values and beliefs of the family. What does “persuadability” require?
• Governing requires a genuine understanding of family values.
• There is no point in attending a board meeting with a closed mind. Remember, judgments are made with less-than-perfect information, and it is best to be open-minded to the prospect that you might be persuaded to support a position quite different from the one you entered with.

Fundamental Meta-Framework: Ability and Consistency

Governance preparation requires that you are trusted. That you have the requisite integrity is not likely to be in question. Similarly, that you are acting with benevolence probably won't be an issue. But the other two trust dimensions may come into focus and, consequently, should drive proactive preparation. First, you will have to demonstrate your ability. No rocket science here. Knowing that there is likelihood that your role will morph into a governing owner, best to do what it takes to gain relevant ability (sounds like the big tent meets the four tests meets principal cost theory, doesn't it?). A good plan could be to combine learning through director's courses and practical experience in governance roles outside the family board. Philanthropic boards, school boards, and/or industry boards provide good grounding. So, when the time is right, consider sitting on someone else's board. In general, there are multiple opportunities available to the willing to build governance skills and gain exposure. This is good use of your time, though it may not always seem so. In fact, having experience on and exposure to boards that don't function optimally is of value. Seeing glaring and frustrating governance flaws is a good motivator to get it right when the time comes to take a position on your family, ownership, or business board.

The other trust dimension relates to consistency. Observing boards that do not function optimally will likely expose you to a case of mistrust due to poor consistency. Such consistency could relate to the timely production of agendas and minutes, for example, or following a predictable meeting process, or even the construction of the meeting calendar. Perhaps more important than these process issues, the consistency by which decisions are made and how stakeholders’ perspectives are considered is likely to challenge trust relationships.

The message is clear: to build governance competency as part of the successors’ talent development planning process, do not take shortcuts, which are generally not available on the long road to continuity.

Keystone Meta-Framework: Three Circles

Returning to the three circles now is appropriate. Developing an informed individual philosophy of stewardship will require interpreting this, the most widely accepted framework in family business, to build your own narrative. This is the opportunity to add your voice and make it your own. Adding the word “steward” and broadening depiction of the individual circles, as we did earlier, is a great starting point. But make it even more meaningful by using this to frame your individual statement, to craft a more powerful and impactful story. Your story, when combined with those of others you're teaming with to build the Continuity Canvas, will result in a rich tapestry of perspectives. Broaden your thinking by considering the crazy quilt perspective, where you “collude” with others to design and deliver something unique but useful at the same time.

Familial Meta-Framework: Four Ps

Recall that the four Ps are parenting, familial processes, protocols in place before needed, and sense of purpose. All four have relevance as individuals consider their development. Continuity, remember, is likely to be more about continuing differently and contingent on how individuals develop their own “self.” Being reminded, and encouraged, to follow your own dream is sage direction. Following your own dream while concurrently contributing meaningfully is both challenging and rewarding. It's not easy, but not impossible. It requires a plan, one that includes how you see yourself in terms of your role as a parent, family member, and someone with an individual sense of purpose. Weave these aspects into your individual philosophy of stewardship.

Individual Meta-Framework: Political Test

I was once reminded, as I described earlier in this book, that the two most important words in the English language are “help me.” The fourth of the four tests dictates that an independent, objective evaluator will be curious to establish how well you perform when it comes to the political test. A role at the intersection of ownership, family, and manager (stewards) is potentially politically charged with emotion, agenda, and other minefields. It would be naïve to think otherwise. As such, becoming politically savvy is required, to contribute optimally.

In general, there will be diverse opinions and perspectives (that is even one of the dimensions!), so be prepared to respond to someone who doesn't necessarily see the world as you do with a simple response, like “I understand my viewpoint, can you help me understand yours?” This will promote trust and sharpen your ability to ward off a potentially political storm. It is about being vulnerable. Consensus is the desired outcome. Consensus is reached by ensuring that everyone feels that they have been heard. Developing this understanding is as important, if not more, than any other topics covered above. Overall, committing to continuity depends on individuals who interpret stewardship similarly, not in exactly the same way but similarly. Capture your interpretation of the sentiments shared on these pages in your individual philosophy. If you have been intentional, deliberate, and genuinely committed, your collective sentiments will align. If they don't, “Can you help me understand your perspective” is a good place to start.

Generational Meta-Framework: Learn to Let Go

Individual development includes developing across the life cycle. The perspicacity, or insightfulness, that is characteristic of the third L stage, evolves into the prescience required to transition into the fourth L. Moreover, staying too long in L3 will sabotage continuity efforts. Think broadly about the application of agency theory, particularly entrenchment. Recognize that you will ultimately be judged based on how you orchestrated your exit, not on any widget you introduced, any sales figures, or any accolades you won. The one award that matters to continuity model generation members is how well the business, the family, and the ownership group was prepared for continuity. That is what should be woven into a philosophy of stewardship.

Tactical Meta-Framework: Four Rs

The four Rs framework outlines the different roles “on offer” in the family, the business, and the ownership system. Using this simple matrix to plan your individual development plan makes sense. It is also a handy tool to educate others in your close family unit, that is, your offspring and spouse.

Follow the prompts: What are the requirements for the different roles? It is that easy. That practical.

Well, actually, it's not that easy. Populating the matrix is complicated. But the process of populating it helps establish that there are differences of opinions. Not better opinions than yours, not worse. Just different. The four Rs framework assists in your individual development by enabling you to question yourself about why you think like you do and to understand why that is different from how others might think, including those particularly close to you, especially your siblings and your parents.

Fundamental Meta-Framework: Trust Dimensions

The definition of trustworthiness is a willingness to be vulnerable. Understand what this means. It matters that you know. Add this to your to-do list…now.