Developing the Family and Business Renewal Process Excerpted from: Planning a Family & Business Legacy Learn More

Over time, based on my experiences with family businesses and the input I received from clients and their families, I developed a process called Family & Business Renewal. I like to think that my personal evolution was from advisor to specialist. From a technician - using my mind to match problems and solutions - to an artist, if you will, working from the heart to conceive, design and build something new. Over time, the Family & Business Renewal process developed into a truly unique way of doing business. More like building a monument to a family or entrepreneur than like simply developing solutions and selling products. I began to see myself not as a sales person or advisor, but a wealth transfer "architect." The more I thought about it, the better I liked the concept. Karl Bareither, Wealth Transfer Specialist.

The process begins with the recognition that the client is the entire family, not only the business owner. This in itself was a revolutionary breakthrough in my own thinking about my clients. I had always felt that whoever paid my bill was the client. No longer! I'm convinced that business planning can not be done in a vacuum. Regardless of how I get paid, from the start, the family matters. An example will illustrate the importance of family relationships in business planning.

I'm reminded of Arnie, a successful grape producer client of mine. I was enjoying a conversation in the vineyard one day with Arnie's son, Milt. Normally a pleasant, amiable fellow, Milt's demeanor suddenly changed mid-way through our conversation. It took me a minute to realize what had provoked this sudden change in Milt's personality. It seems Arnie was approaching us and the sight of his father had instantly turned Milt's attitude from positive to negative.

The reason was obvious to me. Arnie had always exercised a great deal of control over Milt, never letting the young man forget who had the power - in the family, as well as in the business. Although Milt was heir apparent of the family's business, Arnie had never given him any responsibilities in the business. Arnie's need for power and control over his son prevented him from recognizing his son's potential as a businessman. Arnie refused to invest in Milt by grooming him to be his successor and developing Milt's skills and expertise. Over the years, Milt grew resentful of this treatment and, while he continued to work in the business - his relationship with his father has steadily deteriorated. Needless to say, the tension between father and son also prevented any serious planning for business continuation.

Clearly, this is a case where ineffective communication between two family members was at the root of the planning problem and no amount of technical training was going to solve it! The relationship sickness had to be addressed before serious planning could begin. To try to develop and implement a solution in the midst of the distrust, hidden anger and hurt would have been futile indeed.

This is why it makes sense to use a process that would include the son and any other family members rather than try to plan for the future of the business by consulting with the business owner alone. The lines of communication must be opened for effective planning to take place.

The Family & Business Renewal process employs several important principles:

• The entire family must work toward a solution, not just the business owner.
• The agenda must be open and include everyone in the family who might be affected by the business planning.
• Everyone must recognize that people are the most important business asset.
• Everyone involved must strive to create a climate of open dialog and communication.
• Everyone involved must participate in developing a workable solution.
• All parties must commit to plan implementation and periodic review.

These principles were developed over many years spent working with family-owned businesses - many of them with communication problems like Arnie and Milt. My experiences with these families have deepened my commitment to renewing both families and their businesses.