Family CommunicationHow We Talk to Each Other

Monday, November 5, 2007

Goals This Afternoon

Understand family and business meetingsLearn how to establish a Family Council Strengthen family communication skills

Starting Point

Who has a regular, structured Board meeting?A Family Council Meeting?What does your family need to talk about?

AMERICAShirtsleeves to shirtsleeves in three generations

MEXICOFather-MerchantSon-PlayboyGrandson-Peasant

ITALYFrom the stables to the stars and back to the stables in three generations

CHINAPeasant shoes to peasant shoes in three generations

CANADA

Opportunity to learn fromfamilies around the world

Whats the Problem?

The Three Circles

OwnershipBusinessFamily

Conflicting Purpose

Resistant to changerelationships Exploit change

Governance

The processes, principles, structures and relationships that help organisations realise their vision and objectives.

Managing ComplexityThree separate governance structures within one family business system:

1. Family organisation2. Business organisation3. Shareholder organisation

Purpose

OwnershipBusinessFamilyBuild and continue enterpriseProfessionalise family culture, activities, valuesRecognise and resolve shareholder issues

Starting PointFamily Governance

1. Address the issues and assumptions2. Create a family governance structure:Family ConsitutionMission StatementFamily Council3. Maintain regular communication:Retreats4. Spend quality time together5. Monitor progress

Complex Relationships

Five people, 10 relationships

More Complexity

Nine people, 36 relationships

Complexity in the Family SystemSuccessor asks father about retirement plansFather sees son as a threatFather criticises sons work performanceSon sees Father as out of touchSon convinced that father should retireSon talks to other family members

Communication Skills

We do not see things as they are; we see things as we are. We do not hear things as they are, we hear them as we are.

The Talmud

Start the Discussion

UNSPOKENSPOKENDISCUSSIBLE

Use Active Listening Skills

AttendingInquiryRestatingAcknowledging

Speak from Your Perspective

Use I statementsState what youve observedDescribe the impact on youAsk for what you need

Build on Strengths

What works well now?What are common values?What are areas for improvement?

Guidelines for Family Meetings

Define responsibilitiesHow are members appointed/retire?How does the group agree?How does it relate to other entities?Length of officeHow decisions are recordedMust have a chairperson

Agree how to Agree

Types of Family Business

Owner ManagedSiblingPartnershipGolfTennisFootballc. John Ward PhDCousin Syndicate

Setting up a Family Council

StructureObjectivesInclusiveness

Create Structure

Schedule regular meetingsFormal AgendaRotating ChairBring in outside expertise

Set Objectives

Become a learning familyPromote family discussionDefine family values, mission, visionBuild trust and understandingDevelop decision-making processKeep family members informed

Be Inclusive

Consider extended familyEncourage participationTrack attendanceEnsure equal playing field

The best way to predict the future is to create it.

Peter Drucker

How to Reach Us

Jennifer EastFounderONIDA Coaching + Consulting Inc.396 Brunswick Avenue, Unit 2Toronto, Ontario, CanadaM5R 2Z4

T: 416 922 8973F: 416 922 9629E: jennifer@onida.caW: www.onida.ca