‘The power of the circle’, guide or novel?
They wanted it to be a guide, but more than explaining I was interested in showing, so that everyone could identify with the conflicts they face at the head of a family business. I would define it as a pedagogical novel based on real cases.
The premise?
Eight entrepreneurs, men and women, convened by a facilitator establish a circle of trust to express concerns related to the family business, such as power dynamics, desire to innovate, etc. There is a concept of collective intelligence. It is the diversity of perspectives that facilitates the solution.
It also talks about legacy.
It is the guiding thread. A wealth strategy keeps you going. A good legacy is like the Holy Family.
what does it mean
The founder never sees it finished. However, if it is well built, each generation contributes. The essence remains but with the imprint of each one.
Here the family business creates 65% of the GDP, do we value it?
We are dazzled by start-ups and innovation, and we have the image that the family business is inbred, but that is changing. Family businesses are increasingly generating more opportunities and have a strong commitment to the people and the territory.
Where should they focus?
Emotional wisdom is required, in addition to business management. In a family there are loyalties, guilts, betrayals that do not disappear if they are not talked about. Loving and deciding do not always go in the same direction. A professionalization of the family is necessary.
How is it done?
We are not talking about diluting the identity of the family, but about preparing it for the future, establishing shared criteria that facilitate decisions, clear systems and governance bodies that will have to be redefined.
The intergenerational transition continues to be a slow one.
Less than 30% plan for the future and there is a lack of intergenerational dialogue. Each generation has values and they must be included in decision-making processes. Diversity is important to create a future.
The case of Mango comes to mind.
They had worked the governance well, the death of Isak could have sunk them, but they took time to remove the son from the role. If it had been external, the risk protocol would have separated it just by starting the investigation.
Which family businesses survive?
Those who speak, project and redefine the legacy in an aligned and consensual way.
