One of my clients, a non-family CEO of a substantial family business, sometimes describes his own mindset toward business decisions in terms of scarcity and abundance. When he’s in scarcity mode, he finds himself thinking of a particular issue or transaction as a zero-sum game. He begins to hoard opportunities, to be defensive and paranoid about others’ motives. Recognizing his mindset, he has learned to stop himself and think instead in terms of abundance. By envisioning multiple mutually-positive potential outcomes—opportunities for win-win solutions—he finds he is more creative and more open to possibility.
Investing in Possibility: An IPS for Human Capital
Investment Policy Statements. Asset allocation. Portfolio reviews. Investors have developed sophisticated systems that enable them to choose among investment options and manage and track the performance of their Financial Capital. These systems enable investors to create detailed plans, identify opportunities and weaknesses, and monitor performance. But, what about Human Capital?
Teaching Kids Money Skills Pt 2.
BEING RESPONSIBLE WITH MONEY IS A LEARNED SKILL
The more you talk openly with your kids while reinforcing good money skills, the earlier your children will become confident and competent in their abilities to manage their financial capital. Below are a few areas which can be problematic for families, with suggestions that could help. We’ve targeted these for middle school-aged kids, but the ideas can be adjusted based on your kids’ ages.
Teaching Kids Money Skills Pt. 1
BEING RESPONSIBLE WITH MONEY IS A LEARNED SKILL
The more you talk openly with your kids while reinforcing good money skills, the earlier your children will become confident and competent in their abilities to manage their financial capital. Below are a few areas which can be problematic for families, with suggestions that could help. We’ve targeted these for middle school-aged kids, but the ideas can be adjusted based on your kids’ ages.
An Introduction to Building Your Family Business Forums
How do you create a Board of Directors? A Family Assembly? What about an Owners Council or Beneficiary Council? What will they do? Who will be on them? Well run forums are a significant asset when making major decisions and for aligning stakeholders across the enterprise system, but many families don’t fully utilize them. Learn how you might start to put forums to work in your family enterprise in this practical article.
Succession Challenges: Lean Management and Silos
Swimming Lessons: Teaching Your Children to Stay Afloat in the World of Financial Capital
So often, I am asked, “How do I talk to my kids about…” The money? The business? Their trust? Their opportunities?
I often suggest to clients that they create ways for next-generation family members to “bob in the pool”—to participate in the day-to-day activities of managing the family’s Financial Capital from the earliest days, at a level appropriate to their age and stage.
The swimming metaphor applies throughout life. Parents have an understandable desire to shield kids from the potentially dangerous and dark side of wealth. But too much shielding is like keeping kids from water: we prevent them from learning skills that may save their lives.
How to Read a Trust
IF YOU HAVE TO READ A TRUST…
Words to the wise: This article does not constitute legal advice. It is in no way a substitute for having a lawyer who works in the area of trusts and estates review your document and tell you what’s going on. What it will do is give you a basic grounding in a few key trust concepts. Just remember, a person who serves as his own lawyer has a fool for a client.