The Art of Family Business Coaching
"If you're going to establish a system aimed at spanning generations, you have to be willing to
evolve."
- Ennio Mercuri, Managing Director, Ennio International, Australia
Talk with Rene in a
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"If you're going to establish a system aimed at spanning generations, you have to be willing to
evolve."
Talk with Rene in a
Assisting families and family offices in reinforcing their dynasty and maintaining family cohesion is not a science but an art. However, the art values nothing without deeply understanding the science behind family governance.
Drawing from my extensive experience as a confidante, executive, and board member of family-owned businesses across the Americas and Europe, I have discovered that the human factor is the most significant barrier to achieving family business sustainability. It may be surprising to learn that emotions and varying perspectives, which greatly influence human behavior, are often overlooked by advisors in the family governance arena.
My family business coaching practice is distinctively specialized, addressing the silent forces hindering long-lasting success in family governance and family office ventures. An effective coach must navigate family emotions with sensitivity, deftly manage potential conflicts, possess team coaching expertise, and have hands-on experience in family-owned business operations. Additionally, the coach should be well-versed in family and corporate governance, understand corporate and family law, and be knowledgeable about legal structures that facilitate building a lasting family dynasty.
A family business is a business whose ownership is controlled by a single family where two or more family members significantly influence the direction of the business through management and governance roles, ownership rights, and family relationships.
To understand the "why" of family business coaching, it is important to understand the ups and downs of the family business.
The human factor can be the business' principal blessing and challenge when family members work in the company. Its success depends on the owner's ability to handle the interplay of family system issues and business system challenges.
The family business may find its strength in a stable ownership group and a long-term and patient perspective. It may have a mission of excellence embedded in ethics and family values and demonstrate solid loyalties and a strong sense of belonging.
"The challenge is to exploit the benefits arising from the family nature of the business while managing the human factor."
On the flip side, there may be competition over resources, power, status, and rewards. Family relationships can be emotionally sensitive. Memories can last long, and there might be concerns about productivity, fairness, decision-making efficiency, and role confusion. The problems in one relationship tend to cross-contaminate the other relationship.
Family business coaching is a positive approach to long-term and sustained leadership development within the family business environment and a valuable complement to creating enduring family governance success. Family business coaching focuses on the family as well as the business.
The family coaching process is a delicate yet rigorous, fact-driven approach that ensures all family members receive proper attention. The process begins with confidential, in-depth interviews, allowing the coach to connect with individuals and understand their perspectives and challenges. By grasping their expectations, values, mission, and vision, the coach builds trust and fosters a creative, collaborative environment. This process helps the coach identify areas of resistance and accountability while ensuring family members feel safe and heard.
The data collection phase is designed to develop a comprehensive understanding of family dynamics while fostering trust among all involved. This process is not meant to be adversarial, but rather an opportunity for everyone to maximize the potential within the family system.
Upon completing data collection, the coach holds a group session with the family to discuss the data from the initial interviews and the learning. The meeting may prompt key questions about what it means to be a high-performing team, how the family wants to experience their family brand, and the necessary components for success, fostering a powerful, transformative family dynamic.
The aim of the family group meeting is to build an inventory of challenges and opportunities for improvement and create a road map for success.
The coaching begins after the initial family meeting, and specific goals are set. Establishing goals is essential for fostering accountability among family members and business executives. The process integrates individual coaching, team sessions, and periodic family group meetings, maximizing alignment and gauging success. Depending on the complexity, participant numbers, and availability, the coaching engagement may span four to twelve months, ensuring a powerful, transformative experience.
René Sonneveld
2022
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