Thank you to many of you who chose to write back on last Tuesday’s article ‘How to measure the success of family constitution?’. I have gathered 20 of your queries, and the most natural next-step question you all asked was the title of this article.
So, I promise to share my best, and I hope it will add value to your curiosity and care for your family business’s long-term success. Thank you all for allowing me to think through and find real, tangible outcomes one can expect with the successful establishment of the constitutional system.
Like I said in a previous article that one obvious but crucial thing that is the first feet in the mile-long road of creation of success through the constitution is the completion of the making.
The content quality during the making is another crucial foot added to the constitution’s success. What it means is that the content for the business sections carries stunning clarity and respect to the family business-specific and general long-term legacy-building best practices.
There got to be a seamless consistency among the different content. There shall be no competing laws, rules, or policies unless the situation is warranted and specified to maintain the integrity of the whole at all costs.
The cohesiveness of content among disparate topics is very important. It must hold a particular direction for making the constitution useful and purposeful. All members’ faith must flow through all aspects, especially to the constitution’s purposes and principles.
Consistency between intended and realised actions is the first and foremost thing that will enable the capacity for renewal and change. It was getting into now implementation once all the above integrity and seamlessness checks and measures were done. In the renewal sense, two major millstones must keep change permanent and obligation free.
The first milestone is when the constitution agreement is signed by its members. The second renewal milestone is establishing proper amendment systems for keeping the constitution fully evolved and acting as a spearheading system to pull every member’s energy, care, and commitment for success.
Let us inform ourselves of what on-the-ground changes we can observe if the family wants to once the constitution is implemented.
THE STRUCTURAL CHANGES ONCE THE CONSTITUTION IS IMPLEMENTED:
- Complementary regulations will be in place to help every member to stick to the common welfare and individual good at the same time.
- New family structures can be formed based on the revealed and new visibility of the definitions you believe in for legacy. The current structure can be loosened, fastened, and redefined to fit the long-term interest and identity the family commits to.
- Newer ownership structures to facilitate broader business interests and executing long-term family strategy.
- New company structures can be evolved with the advent of the constitution. There will be an opportunity for the entire ownership, the next generation, and others, if permissible, to define and decide on the rightful structure of the company.
- In case families already have a business, the board of governance, with independent directors, will present an excellent opportunity for the family to begin redefining the go-to model for linking family and business systems.
- New company execution strategy will also take place at a pace and peace considering real long-term advantages that family unites to build a common future they care about.
- A definite move towards succession can be planned in a more structured, aware, and united way by all members to objectively support the succession planning process considering the ultimate interest of the family.
- As per the consolidated and agreed family mission, new family strategies must be thought through and have an exceptional advantage to build guidance for aligning business roadmap as per the cognisance and integrity with family strategy.
- At personal levels, for all individuals, there will be following crucial change opportunities that can be seized and exercised to grow up together maturely and distinctively as per the constitution.
THE PERSONAL ATTITUDE AND SKILL CHANGES IN MEMBERS ONCE THE CONSTITUTION IS IMPLEMENTED:
- Individual members hold better knowledge of one another. They have layers of past conditioning clarified, and now the view is more ready for feeling the correct emotions and perspectives of each.
- Better knowledge of one’s company today and shaping views and thoughts agreed upon during the making equips each owner and next generation with a single version of truth for today and tomorrow. This inspires confidence and raises the commitment of members to a newer level.
- Greater knowledge about the family as a system itself. The clear understanding of their family in everyone’s minds and hearts gets unified to a newer realistic understanding. This inspires stronger reasons to feel belong and care for your and your family’s goals.
- The new awareness of the family business rights, duties, and roles gave stunning clarity and built confidence.
- Honing better decision-making skills is greatly presented, and members are encouraged to learn together and help each other. This builds a deeper bond and plays a crucial role in generating trust at the heart of an individual with reasons and emotions in clear checks.
- Learning how to solve conflict is a key skill that would enable practical strength in individuals raising emotional tenacity levels. This oozes the ability to stay calm and genuinely focused on the subjects and helped the overall family accomplish productive friction to achieve rare insights and grow the strength of the bond in larger practical ways.
- Last on this list and not in reality, the key change that family and business members will gain is in raised levels of trust, reduced fear, more open & honest conversations, respect for time gets ultimately pushed to limits and help everyone create a unique advantage for the generations to flourish and enjoy fraternity, success, and balance.
- One major advantage the family will realise is the discipline and transformation in communication. Human communication, especially the importance of communication, impact and skills required in blood bonds and intimate relationships, exceeds far more than the normal ability to communicate ideas and emotions. The proper implementation of the constitution’s system will enhance this one uniquely fulfilling and equally destroying skill in every member that will enhance completely the maturity and instil great pride in the members.
All the above structural and personal attitudes & skills changes will create a unique value proposition that the family may never have and be dreaming of for a while in their corner of hearts. It will be ready to create a formidable enterprise that brings generational success and meaning with a legacy that speaks volumes to the world about the family’s identity for centuries to come.