Family Wealth and Power Distribution

The distribution of family wealth and power can be extremely complicated. Clearly the distribution is the discretion of the family leaders, but the lack of understanding and acceptance of these decisions often produce emotional consequences on the family system. Unhappiness with the distribution or power transference can cause a serious rift among family members. The psychological intricacies that are interwoven with the actual distribution have an enormous impact on the future relationships among the offspring, identity and self-esteem of the family members, and the legacy of the family's values. To facilitate the transfer process Executive Advisors help the family by untangling the emotional issues that may complicate the transfer of power and wealth.

A common problem is to mistake estate planning for wealth or power transference planning. Estate planning deals with how money is transferred, not how power is transferred. Both issues need to be addressed. We help the family clarify the values and facilitate the power transference. If there is conflict or confusion during the distribution there can be a permanent disruption in family relationships. Establishing formal structures and communication processes can avoid or minimize potential relationship issues among the family members.

Our consulting services assist families in deciding how to clarify their goals and minimize interpersonal discord in a structured and managed way. Our experts can offer the following services:

• Impact Analysis/Vulnerability Assessment - identifying psychological and interpersonal vulnerabilities, and evaluate available alternatives to minimize or reduce the impact.
  
  
• Family Continuity Management Program clarifying and communicating values, developing and implementing a family continuity management program.
  
  
• Family Wealth and Power Transference Workshops and Retreats developing an understanding and appreciation of the distribution among family members.
  
  
• Family Crisis Management Program promoting harmony and minimizing conflict if interpersonal problems occur.
  
  
• Family Continuity Monitoring developing a system to regularly monitor the effectiveness of the family continuity management programs and their impact on individuals and family sub-systems.
  

Impact Analysis / Vulnerability Assessment

Executive Advisors can evaluate your family's current transference and distribution plans for potential psychological effects on the family members. We conduct a vulnerability assessment to identify potential psychological issues for the implementation of the founders' planned distribution. In carefully structured workshops for family members and individual interviews, our consultants help identify areas of key potential psychological impact. Once the critical problem areas have been identified during the vulnerability assessment, we analyze the likely effects on the family members and clarify whether alternative strategies are needed to coincide more closely with the family leaders wishes. This approach alerts the family leaders of possible psychological vulnerabilities, and provides alternatives to minimize family problems and promote harmony.

After assessing the plan for the distribution of wealth, the family can put into effect processes that facilitate the understanding of the planned transference, to implement programs to develop future leadership, and foster a sense of community within the family. The family continuity management framework provides the scope and constraints that are required to establish a sensitive and diverse family culture.

Family Continuity Management Consulting

The power and wealth transference patterns are based upon the values and decisions of the family leaders. Communication patterns, emotional issues, and family traditions, also strongly influence the family power distribution. Family members often have competing values, needs, and wants which often affect their expectations of the distribution. The transition of leadership and wealth is further complicated by differences in the developmental goals of each generation and each individual. Clarifying the wealth distribution and power transference decisions facilitates harmony and understanding among the family members.

We help the leaders clarify their core values, develop a structure and process, in order to communicate and cultivate these values among the members. Our consultants prepare the family to receive the information by offering a structured forum. Family meetings offer a forum to discuss emotional issues, develop a process of listening and respecting differences, and put into operation a process to resolve potential conflicts. Our consultants help the family to act respectfully and learn ways to avoid or minimize conflict among the members. Strategies are offered to develop the individual potentials of the family members, to build a strong community among the members, and to learn to lead and compatibly participate in multi-generational and multi-family situations.

Families continually face the potential for psychological discord. A key factor in minimizing possible psychological problems in wealth distribution or power transference is to implement a sound family continuity management system. This system enables the family to continue functioning while working through problems.

Family Wealth and Power Transference Workshops and Retreats

An essential part of the family continuity management system is having a regular, open communication process for its members. The establishment of regular family meetings to resolve specific family issues is a specific approach that enhances healthy family relationships and understanding. Through workshops and retreats we promote an open discussion for questions, concerns, and the implications of the projected dispersion. We facilitate in these forums by helping families maintain an effective communication process. The awareness that there is an established process to resolve problems, promotes a sense of security and trust among the family members.

Family Crisis Program

Family crisis management is having a plan in place to handle crises. The key components of the family crisis management program are the designation of specific people and processes to coordinate and communicate among family members if a crisis occurs. We work with families to design a crisis management program to facilitate their family's establishing an orderly response to crises.

Establishing a family policy is the key to the successful handling of a crisis. Roles and responsibilities need to be identified to create clear plans that help the family respond swiftly and effectively to situations as they develop. Such a policy indicates that the family is prepared to cope with difficult issues to promote family understanding and compatibility.

Family Continuity Management Monitoring

By establishing an ongoing monitoring system, Executive Advisors is able to support families to achieve their corporate goals while maximizing family harmony. This assessment will help the family determine the effectiveness of their family continuity management practices. We can also lend our expertise by providing an independent review of the process.

Results

Our interventions typically enable clients to achieve breakthroughs in performance and results that far exceeded their initial thoughts. Our goal is to encourage executives and organizations to achieve their visions in a climate of constant change.

There are quantifiable results of the consultation. Typical measurable results are:

• The individuals in your company will feel more valued and contribute strongly to the corporate vision and goals.
  
  
• Key individuals will be retained as substantial elements to future success.
  
  
• Your company will be more resilient to inevitable challenges and
  changes -- both internal and external.
  
  
• The company will be operating at peak human efficiency.

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