Services

 

Build the Foundations

Every family is unique. While families may face similar challenges, the combination of your family’s situational elements and familial dynamics means that your family’s set of circumstances is always going to be unique.

 
 
 

Learning about your common themes and areas of difference can help you proactively avoid or manage potential conflict.

Because your family dynamics and circumstances are unique, the approach must be bespoke to be effective. To find the right approach for your family, it is important to gain a thorough understanding of the individuals, their values, needs and interests – your collective uniqueness. This can be done in different ways but must resonate with family members.

  • Allowing an independent and objective view of your family’s circumstances enables common themes and areas of potential conflict to be identified and the most appropriate and robust solutions to be put forward.

    Gathering information is most efficiently and effectively done through questionnaires and one on one interviews, providing an objective and most importantly, confidential, space to reflect on your family circumstances.

    The advantage to having an independent third party do a ‘health check’ on your family’s circumstances is that you will be able to identify underlying issues that may not be immediately obvious to you that may manifest into conflict in the future. And if you are proactive in identifying these early enough, you can address them before they do irreparable damage. It can also allow your family to identify common themes, which you can focus on to strengthen your family.

    Alternatively, your family may already be experiencing conflict. This is usually because you did not see it coming or you have not known how to handle it when it presented. Often conflict manifests when a trigger event occurs and if this has happened to your family, it may have thrown you into unexpected conflict. In these circumstances collecting information through questionnaires and one on one interviews is the most efficient and conciliatory way of gathering information, particularly if the environment is already confrontational.

    Gaining a true understanding of your family’s current situation and dynamics is an essential starting point to getting a quality result.

  • Opposing core values are a key ingredient for conflict. So is having a vision for the collective family that is not shared by others in the family, or not having a vision at all.

    Open and transparent discussion on these subjects can be very beneficial in promoting awareness and achieving alignment. However, for many families, this is easier said than done. Facilitation by an independent and objective third party provides impartiality that cannot be achieved by family members. This is valuable in providing a non-judgemental safe space to explore subjects such as the family vision and values that are likely to evoke different viewpoints and potentially introduce conflict.

    Conflict managed appropriately can have positive outcomes, such as driving innovation and allowing a family to evolve. Families who are clear on their vision and understand their collective values have a solid foundation and are more likely to succeed in managing and transitioning their wealth.

Your journey begins here

Prevent Family Conflict

“The single biggest problem in communication is the illusion that it has taken place.”

— George Bernard Shaw

 
 
 

Research shows that a breakdown in communication and trust is the single biggest contributor to failed wealth transfers.

Often the most difficult thing is recognising the point at which your family will genuinely benefit from independent third-party support in relation to communication. This is not to suggest that your family are not good communicators or that the current generational decision-makers need to relinquish control. However, business and family systems that are intertwined can create a level of interdependence and complexity that can easily lead to conflict. The higher the number of family members, the greater the risk of conflict occurring – this is why many families transitioning a family legacy often don’t make it past the third generation (cousin consortium).

As your family and its situation are unique, your requirements will also be unique. The following are examples of some of the proactive services that will benefit your family and prevent conflict from becoming entrenched:

  • Family governance refers to the structures and processes families use to organise themselves, make decisions and guide their relationship with their enterprise. In many circumstances, a more formal type of governance is required as the family expands and becomes more complex. When well-designed (and properly implemented), family governance can improve communication, help set boundaries, clarify roles and responsibilities and result in greater harmony between family members leading to easier transitions between generations. Ultimately, appropriate family governance can reduce the potential for conflict and promote robust decision-making allowing families to flourish.

    For family governance structures to be effective, it is critical they consider the family’s individuality and reflect their unique dynamics, culture and objectives. Family governance structures are not designed to inhibit the family but to support its future success.

  • The purpose of a Family Council is to provide a forum for family members or family branches to have a voice on matters that impact them in relation to the family enterprise, and for the general transfer of information. A Family Council is a common component of a family governance structure.

    Support through facilitation by an independent third party provides a safe space for open and transparent discussion on potentially contentious subjects. If facilitated by someone with appropriate skills in conflict management, it can result in a better outcome for your family and its future.

    The agenda items for discussion in a Family Council are likely to vary depending on the family circumstances and what they are trying to achieve. Family Council may not be necessary for all families as it depends on where they are in their journey and the types of challenges they are facing, however, those approaching an intergenerational transfer will most certainly benefit from an impartial facilitator to guide open communication and provide support to address underlying issues in a proactive manner.

  • A Family Constitution in its simplest form is a non-binding written agreement that summarises the position of the family on subjects that have the potential to cause contention and conflict. We know that the biggest cause of failure in wealth transfers is a breakdown of communication and trust and a Family Constitution is an effective tool to improve communication and maintain trust.

    Topics covered by a family constitution will be different for every family, but some common subjects include the education of family members (clear communication on the extent to which education expenses will be funded) and the employment of family members in the business (managing expectations and providing a fair process).

    The constitution is generally ‘owned’ by the Family Council which has the responsibility of ensuring the content is reviewed to remain relevant as the family evolves. The most effective family constitutions are those that are prepared in a collaborative way with family members having buy-in. To be effective, they must be bespoke - it is critical they consider the family’s individuality and reflect their unique dynamics, culture and objectives.

It begins with a conversation

Address Family Conflict

“An eye for an eye will only make the whole world blind.”

— Mahatma Gandhi

 
 
 
 

In some instances, family conflict is already present and at this point, the most effective approach is to seek assistance from an independent and impartial third party.

The reality is that many families are already in conflict before they seek help. At this point, communication and trust have broken down and rather than effective interactions, information is often conveyed via hearsay and assumption. It is possible that perception rather than fact is forming an unstable basis for decision making and things may begin to spiral out of control. In the worst cases where conflict is left unaddressed, the family and its legacy can be irreparably damaged.

If your family finds itself facing entrenched conflict, there are options to manage this including mediation and conflict management. 

  • Conflict left unaddressed over time can become entrenched, presenting a particular threat to families that are interdependent (tied together by a family legacy, for example, a family business or other investments). In some cases, the conflict is already well entrenched and has escalated by the time families seek help. At this point, it can be very difficult to manage from within with no third-party assistance.

    Mediation is an option whereby an independent third-party assists parties to identify and assess options and negotiate an agreement to resolve their dispute in a structured way. The impartiality of the mediator is paramount and therefore cannot be someone familiar with either party.

    The process is a voluntary one and must be entered into in good faith by the parties to find a resolution. If you have tried to resolve a dispute within the family and are unable to de-escalate the conflict internally, third-party assistance through mediation may be an option for you to consider.

  • Conflict management coaching is a one-on-one process in which a trained coach helps clients gain increased competence and confidence to manage and engage in their interpersonal conflicts and disputes.

    Conflict management coaching may be beneficial when family members are in conflict and would like to try resolving the conflict themselves, but recognise they need to build their skills in managing conflict before attempting that.

    Alternatively, conflict within the family may have escalated to the point of mediation and a person may be seeking conflict coaching prior to entering mediation to ensure they engage as effectively as possible in the process. It should be noted that as impartiality is a key principle of mediation, someone acting in an ongoing coaching capacity cannot also be the mediator in the same matter.

    In the context of your family, conflict management coaching is about learning the skills to apply in your family environment where conflict is either already present or is a possibility. Having these skills and being able to apply them can go a long way to ultimately protecting your family legacy.

Take the first step towards family wellbeing