A few weeks ago, a narrow majority of British voters put an end to the United Kingdom's participation in EU. This seemed to shock observers—and markets—everywhere.
It is interesting to reflect on the issues that impacted the way people voted. The factors are far from straightforward and included; the availability of information, methods of communication, deep conviction and generational bias. All this in the mix with instinct and emotion.
Much has already been written about lessons learned from the fall-out, titled variously "Lessons for Inter-American dialogue"; "Lessons for New Zealand"; "Leadership lessons" and many, many more but are there any lessons for family enterprises to learn too? Here Michelle Osry, a partner in Deloitte in Canada, comments further:
I see at least 4 lessons for family enterprises.
1. Know what you're voting for
Family enterprises with complex issues need to ensure their voting members have a solid grasp of the import and implications of key choices in the family and the business. Doing so requires investment in governance, mentorship, wealth literacy and continuing education.
2. Be mindful of generational differences
Each generation is informed by their circumstances, motivations, aspirations and fears which is critical to acknowledge for family enterprises, whose members often span three or more generations. For example, many of today's "Founding Generation" tend to have a very defined sense of what is right and wrong, valuing hard work and rules more than their Gen X, Y or Z offspring. Follow-on generations may be more comfortable with diversity and may be less willing to work the hours. Their motivations also tend to be quite different: the first driven to follow a dream, the other driven to find meaning in privileged lives. Being mindful of the different drivers of each generation allows families to anticipate, interpret and manage the generational differences that could otherwise lead to frustration and conflict, and quite possibly a polarized vote.
3. Don't shock the system
Economies don't respond well to shocks. Neither do family enterprises, particularly those that encompass multiple generations, diverse stakeholders and complex holdings. Even a process intended for good can wreak unnecessary havoc on a family and its wealth. Change may well be needed from time to time, but it will more than likely require a measured and methodical approach. Not a shock to the system
4. Emotion plays a big part
Finally, emotional engagement is of critical importance to the voter. Family businesses who are often more comfortable with the rational: estate planning, investment decisions, structuring of assets, should also invest in the emotional (family dynamics and communication styles). Attending to both is key.
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