In Part 1 of this article series, we described how an ownership strategy supports effective ownership, and which topics should be included in a well-crafted ownership strategy. However, while the strategy document itself is important, much of the real value lies in the process that leads to it. A well-run process sparks new conversations within the family or between the owners and the family office. It also brings insights into the expectations, concerns and thoughts of the people involved in the ownership circle – creating a deeper mutual understanding between those involved.
When expectations and concerns are brought to the surface in a safe, calm, and – if needed – facilitated setting, they can be addressed constructively.
Finding the Right Pace
When developing an ownership strategy, it’s important to take things slow – to make room for deeper conversations and allow time to explore practical solutions for each issue. A well-paced process gives the ownership group an opportunity to practice decision-making together. It also helps shift family dynamics, positively challenging traditional parent/child or older/younger sibling roles as the group steps into a more professional setting – taking on the role of owners.
The strategy process itself should be tailored to fit the family’s mindset, temperament, geography and available time. In practical terms, each topic can be addressed in its own dedicated meeting or workshop, where the family – along with an adviser or family office representative – works through the issues one by one. At each subsequent session, previous decisions should be revisited and any finalized formulations – such as the ownership purpose, core values or investment philosophy – should be presented for review, refinement or approval.
It can be an advantage to meet somewhere outside of the family home, the family business or the family office. New surroundings, good food, regular breaks or contributions from external experts aren’t just nice to have – they are often essential to creating a productive atmosphere and encouraging constructive decision-making.
DIY or With an Adviser?
The family can address many of the questions related to the ownership strategy on their own. However, having an external adviser to guide the process, document decisions and follow up on discussions is invaluable. This support ensures that the final strategy is a cohesive, practical and dynamic document.
For advisers, it’s important to recognize that topics which might seem straightforward – like creating an exclusion list for investments or determining board compensation – can indeed be highly sensitive. These discussions often touch on deeper issues such as values and ethics as well as attitudes towards family, business and the broader world. Successfully navigating the strategy process requires not only expertise, but also patience, empathy, and a keen understanding of human dynamics to prevent disagreements from turning into conflicts.
Getting Started With the Ownership Strategy
All development initiatives require courage and energy, and this is also true when it comes to the development of a shared ownership strategy. The result, however, is worth it, as the family will have both plans, hopes, expectations and concerns articulated – once and for all.
If you are the person leading the process within the ownership group (whether you are the founder, the next generation or the CEO of the family office) it can be helpful to keep this quote in mind:
“I believe that the ultimate leadership is about the leader seeing themselves first and foremost as a coach who does everything to get everyone on board. A coach involves the team in the big decisions and makes sure that the individual is put into play right where they can perform best with the greatest motivation and passion. The same is true in families. It’s about developing the skills to engage, share information and respect each other.”- Kim Kristensen, Chief Executive and Trusted Family Adviser, featured in the article “Family Ownership Should Always Be a Team Effort“.
If you’re interested in learning more about how to create a strong ownership strategy process for your specific ownership structure, feel free to contact us for an informal meeting.
