A typical question that reveals one major hesitation among multigenerational family businesses is their freedom.
Some feel that having a family constitution restricts their lifestyle and access to wealth.
Some feel that it may even affect their share of ownership, and uncertainty about it makes them freeze in their minds.
Others feel that if a constitutional approach is taken, then it may dilute their power in the family.
Many more believe it will trigger a division of work based on meritocracy and not inheritance, making them wonder how that would be for them.
…and many other unspoken doubts and views they fear to ask because they are concerned about not hurting someone in the family… or other similar reasons.
Research suggests that the biggest mistake families make is to not get over the hump of their fears about constitutional approach restricting their genuine ability to unleash powerful results should constitution in place. And sadly, some of them do devoid themselves of this unleashing effect for years and even over a decade. What a pain they live in their head and heart for so long one cannot imagine and admire their love or fear or both for family.
So, many of you are aware by now that the family constitution is a base foundation for family identity, prosperity, legacy and harmony.
This foundation is acutely designed from unique to the family DNA. This DNA comprises the family’s mental model, philosophical dimensions, beliefs, unwritten subconscious rules they live on per their unique history and much more.
This DNA then acts like a needle to stitch the entire constitutional proclamation of the family. It weaves through all rules, principles, policies so forth of the family’s constitution in areas including but beyond only wealth and relationships…
Once the constitution uses the needle as its family DNA, stitching through all vital areas, such as family wealth, is ready—living the constitution via governance is key.
It gives the family an edge by unleashing the full potential of running a family enterprise in a structured, all-inclusive, and institutional way.
When sharpened through religious usage of the constitution, this edge delivers an unprecedented advantage to a family’s wealth creation, preservation and augmentation for generations.
Family Constitution unleashes the following:
- Powerful, faster and strategic decision-making — continually.
- Sense of cohesion and unity among & between multi-generation goes deeper. This gives an amazing sense of working together, which relentlessly increases the ability to build a large and bold future for the family and whatever the family cares.
- Improve communication to multi-fold levels giving family decision structure, model, and process a great boon. Apart from giving the family its sharp edge on decision-making improvements, communication itself creates a powerful confidence and trust among the members that we are getting greater and better. It’s precious sense to build, giving further a oneness that’s remarkably effective in creating wealth in all directions.
- Relationship within and relationship among improves performance and a feeling of genuine connection with the overall family. This gives the family courage to bring out and deal with any dilemma the family business presents for growth or risk management.
- Lifestyle disparity and the union still — With multigenerational presence, the disparity in lifestyle can invariably be present. This can create conflicts and other suppressed emotions that doesn’t help businesses. With the constitution, lifestyle and similar topics remain no longer taboo but respectful acceptance and applause to those who differ. A sense of individuality and freedom is accomplished in many families.
- Next-generation leadership and readiness to reinvent and reform business and norms via constitutional approach. The asset to the family business is the next generation—a true asset. When constitutional living is employed and practised next, generation grooming becomes increasingly effective. Confidence for the next generation when joins get at par to take on the world in successful ways and not trial and error alone.
- … and many other boosters and enablers to create abundance and prosperity for generations ahead in the family business with constitution and governance
Our engagements with families who engaged their multigenerational stage of business in creating constitution and governance suggest that individuals find real and greater freedom to become who they are and what they are capable of with the speed and rewards they deserve.
I hope this helps to a degree to see the same.