The Business of Family - Episodes Tagged with “Africa”

Carl Bates - High-Performance Family Boards from New Zealand to Africa

Mike Boyd — Mon, 15 Mar 2021 19:00:00 +1000

Carl Bates is Africa's leading educator, appointer and guide of High-Performance boards. As the Founding Partner of Sirdar, he is world renowned for his practical understanding of governance and is constantly invited to share his knowledge and insight on the subject - in Africa, Sirdar is the largest provider of independent non-executive directors to private companies and family businesses.

As a G2 entrepreneur, Carl works closely with his Mother and spouse in his family property business in New Zealand, bringing real world insights to his professional service clients. Carl is particularly passionate about how boards can transform and scale-up privately-held and family companies.

Standout Quotes:

"There's a difference between craftsmanship and entrepreneurship" - [Carl]
"And I like the term 'Contribution', it's all about what we have to give and finding ways of being more effective in that" - [Carl]
"I think having a purpose as a business is fundamental to what building longevity in any business is about" - [Carl]
"In businesses, we can see a direct correlation between the makeup of the group of people at the top and the financial performance of the business" - [Carl]
"It is a privilege that a family has when they're right at the beginning of the journey, and they make the decision to become a family business... and they put in place the structures at that point because it's a lot less emotional to argue about something that is 10 or 20 years out, than being in the middle of that thing in 20 years time" - [Carl]
"Families need to define 'well, what does family mean to you?' - [Carl]
"The larger the number of beneficiaries of the family, the bigger the governance framework needs to be at a family level" - [Carl]
"There's no such thing as an 'Original Mistake', there are so many families and so many boards around the world who have done this so many times before you, that rather than try and make an original mistake, go and see what other people have done" - [Carl]

Key Takeaways:

Carl recalls he initially had no desire to live in Africa, a few years after this, he repeatedly had cause to travel there on business and realized he had to stay, creating offices all around Africa which help families and companies to develop their boards of directors.
Starting University at 15 years and becoming a chartered accountant by 21 years, he had always wondered why even though each generation of his family had successful entrepreneurs, there was no build-up and transfer of wealth to the next generation.
Knowing most of his great grandparents personally helped instill values that formed the foundation for the role he currently plays in business generally.
Carl shares that the purpose of his family business is giving people a place to call home.
Explaining the benefits and process of introducing new family members. Carl notes that the disparity in the energy levels between him, his wife, and other family members, allows for productivity to be maximized in different areas.
So often the succession planning is focused on when the person passes away, but if we don't take other family members on a journey of understanding the business over time, when the time comes they won't have the understanding of it to enable a successful transition.
The Contribution Compass is a tool used to understand family members as individuals, their personalities, and predict the expected roles they would play in the family. It is also used in business as a commercial tool since there is a direct correlation between the make-up of business leaders in any business and the success of that business.
Regarding the formality surrounding the entry of other family members into the family business, Carl discloses that nothing would be gifted and members would have to buy into the business. He also emphasizes the need to legalize every aspect of this entry as he recommends for his clients too.
I encourage family members to deal with things when they're not topical because that's when it's least emotional.
Regarding planning ahead for families, the best place to start is to understand that being a shareholder doesn't necessarily mean sitting around the board table. It is also important to understand Family Governance from the perspective of defining what family means to each member.
The Governance structure is predominantly focused on determining directly family-related issues but the Operational Board side is driven by the underlying Family business. This is where families go wrong; when they cannot differentiate between Family Governance and Governance of a Profit Generation Entity.
While sometimes the family traditions do serve the purpose of bonding, in other cases, there is some resentment on the expectations from different family members based on such traditions.
From Carl to his kids: It is important to spend time with your grandparents and great grandparents or people connected to them from that generation because there are threads that enable you to understand how your family has developed, and what the core values or cornerstones of success for you family are, through that time of engagement.

Episode Timeline:

[00:49] Introducing today's guest, Carl Bates
[04:04] Carl shares his professional backstory.
[14:28] The purpose of Carl's family business.
[16:17] Apart from you and your mother, are there other family members involved?
[22:43] The Contribution Compass
[28:00] In terms of families planning ahead, where do we start?
[30:39] Where does the distinction lie between a Family Council and the Operating Board?
[34:33] Differentiating between a Family Council and a Family Forum.
[36:45] What is one of the biggest challenges that families have when trying to put a governance structure in place for the first time?
[38:12] Comparing an Operational Family Business with one that is just "stewarding the wealth".
[43:50] How are families celebrating their uniqueness and traditions over the years?
[48:50] Carl's letter to his kids.

For more episodes go to
BusinessOfFamily.net

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Special Guest: Carl Bates.

Nike Anani - Building a Generational Bridge in African Family Firms

Mike Boyd — Mon, 01 Mar 2021 19:00:00 +1000

Nike is the founder and CEO of Nike Anani Practice, Ltd., in Lagos, Nigeria, where she helps second-generation family business members collaborate with the founding generation in an effort to build sustainable family enterprises in the region. No more than 2% of African family businesses successfully transition power to the second generation, and Nike has made it her mission to facilitate this generational merge.

With over a decade of experience working with select business families in Africa, Nike Anani helps owners lead their family organizations to long-term impact and legacy.

Her clients choose to engage her, not only because of her extensive professional training, but also because of her practical experience as both a business founder and a NextGen. This allows her to uniquely empathise with both generations and act as a connector to the Founding generation.

Standout Quotes:

"And that's an observation I have of founders and entrepreneurs, they're just amazing people that have an eye for opportunity" - [Nike]
"As most founders do, it was about giving me the best opportunity to set me up for success and often in their minds, success is going as far away from the business to get the best experience...so they can come back" - [Nike]
"In Nigeria, 90% of indigenous businesses are family businesses, but only 2% survive beyond the founder" - [Nike]
"Family businesses are so key to the community, if they keep failing after a generation, then what's that doing to the economy?" - [Nike]
"I think that starting from a relatively small base, the best way to build anything is with community, and actually building what that community wants rather than just dictating something that you found off the shelf from another culture" - [Mike]
"If you've seen one family business, you've seen one family business" - [Nike]
"A friend of mine says whenever you wake up is your morning, some people don't wake up until they're 85, they don't know what they want" - [Nike]
"I need to be in the best version of myself so I can serve people to the best of my ability" - [Nike]
"There's always something new to learn, we've never arrived, we're just on this ongoing journey of endless learning, in my view" - [Nike]
"There's no position that's guaranteed in life, whether it be a position of material success or honor, today you might be celebrated but it doesn't mean tomorrow you will be" - [Nike]
"It is important to ensure that people's external projections don't become your internal story, because your story is the most powerful thing that you can give yourself" - [Nike]

Key Takeaways:

Nike is a 2nd generation family business owner, and she narrates how her father started the family business initially as a side-hustle.
Describing events around her entry into the business, she shares the plan was to only stay for a few months in Nigeria, gain exposure to business in general, and move back to the UK eventually. However, she was drawn to the spirit of entrepreneurship there and felt more liberated as a young black female.
Nike explains that while her father had expressed general support for her in any field she was planning to go into, she had never expected she would work in the family business.
A glaring disparity in the decision-making process between her former place of work and the family business was the time taken which could be much shorter or longer in different scenarios, leaving her befuddled about family business as a whole. This encouraged her to get professional education at the Family Firm Institute in Boston.
Employing her knowledge in her family business, Nike started the process of "Governance" which involved her siblings more, intending to avert the typical dissolution that plagued most Nigerian family businesses after the founding generation.
Another strategy adopted involved starting the conversation by creating a community called "African Family Firms" for African families facing similar challenges to meet and navigate through these issues.
Nike highlights various peculiarities of African families, noting how these have to be put into consideration when trying to find solutions to the survival of family businesses in Africa.
You won't know what you want until you come together as a family, have open conversations, and plan for different scenarios. Get clear as a family on who you are, what your values are, the goals of the family, and the purpose of the family business.
Emphasizing the importance of continuous learning, Nike embraces the process as a part of being the best version of herself.
A significant failure that set her up for success took place in school, where the result she got at some point would not be good enough for the jobs she wanted, and this motivated her to push herself harder than ever before to achieve her desired goal.
Nike’s parents impressed upon her certain values described as 4Hs and 2Ps. The 4Hs are Honesty, Hard work, Humility, and Harmony while the 2Ps are People and Places. All of these were included in the family constitutional value system when the formal family enterprise was set up.
It is important to understand that while people can project their weaknesses onto you and vilify you, their external projections should not become your internal story because your story is the most powerful thing you can give yourself, and you have to hold on to that story.

Episode Timeline:

[00:50] Meet Today's guest, 'Nike Anani'.
[01:56] Nike's personal and professional background.
[08:30] How did the family make the jump from medical consumables to construction and building hospitals?
[16:55] How were you inspired to learn more about the Business of Family?
[23:00] Since the wake-up call that you received, what did you do about it for your own family or your friends' families?
[29:50] Do people document entitlements for kin or rather more of a bloodline lineage?
[32:53] Challenges surrounding Real Estate planning in Africa.
[39:18] An overview of Nike's different roles in family business generally.
[50:15] Has there been a specific failure that you've learned a great deal from?
[56:00] Apart from education, what else came through as fundamentally important from your parents?
[59:40] Nike's letter to her kids.

For more episodes go to
BusinessOfFamily.net

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Nike Anani.

Adii Pienaar - First Generation Wealth Creator & Living Life Profitably [The Business of Family]

Mike Boyd — Mon, 08 Feb 2021 19:00:00 +1000

Adii Pienaar is the founder of three technology companies, two of which he’s exited so far to create first generation wealth for his family. A prolific reader, writer and maker, Adii brings a refreshing perspective to the way he views family, business and wealth.

I was fortunate enough to preview his new book which was released last month, titled Life Profitability. In Life Profitability, Adii provides you with a new perspective for becoming self-aware, recognising your values, and understanding your impact. An enriched life and successful business are not mutually exclusive. In fact, this book will provide you with the first steps in building a business that is more sustainable with increased options for you, your employees, and your family.

Standout Quotes:

"The biggest burden I felt was that transition from wealth generation to wealth maintenance" - [Adii]
"I think in any kind of business partner relationships, as long as everyone is aligned towards the same goal, then everything is hunky-dory, and as soon as someone is not aligned with your process then everything is not hunky-dory" - [Adii]
"Whatever I do, it should be that truest expression of self" - [Adii]
"There are multiple things that pull us into different directions on a daily basis but having an awareness of when that happens... that's Mindfulness" - [Adii]
"I truly believe in transparency for the kids" - [Adii]
"The family office should serve as a leg up for the trustees and that's the kids, right? it's not a handout" - [Adii]
"Neither the family office or any of our individual lives should be so rigid like we're constantly trying to fit into a single recipe" - [Adii]
"The cost of anything we do in life is just Life" - [Adii]
"I don't care if they miss 99% of it, even if they become 1% of the context of this conversation" - [Adii]
"The way I think about legacy is, if I were to die tomorrow, the goal would be to have left my kids or anyone who cares enough breadcrumbs about who I really was" - [Adii]

Key Takeaways:

A major transition point for Adii was moving from wealth generation to wealth maintenance.
With little information on how to run a family office, he was able to get started by asking questions and got propelled into motion when the law firm got the right people around him to explain the process.
Adii describes his value system: How can I wake up every single morning and spend my time manifesting the truest expression and version of myself in anything that I do?
An ideal day for Adii is "being present".
Adii explains that the main reason he went back into entrepreneurship was he wanted to create again, he was enthusiastic about building a team, and those are his higher values for now.
While admitting that his kids have a great life especially from the financial perspective, he is concerned not to bring up spoilt kids who can't be individuals with their purpose.
Adii describes the strategies he uses to help build his kids to become individuals with a backbone: Transparency, which involves letting the kids be fully aware and involved with the ongoings in the family office, as well as the concept of Gratitude.
The family office should always prioritize business ideas from the trustees.
Expounding on the concept of 'Paying a Life Dividend': A business that's not just financially profitable but profits your whole life. Adi discusses the relevance of having assets that mean more than their financial value to the family, which is selected by stress testing, effective communication, and evolution.
It is important to sequence things, rather than doing two things at once and have none getting your full attention.
Every single minute of our day, we only have finite attention, time, and energy to do anything, so the decision to anything is costing us life.
Unfortunately, mainstream media has created a narrow definition of success that serves barely 0.1% of the world, but there is a much wider and diverse definition of success for the rest of us, and it is our responsibility to define it.
To Adii's Children: Do the work, continue learning towards discovering who you are, and figure out how to manifest that in most of the things you do in life.

Episode Timeline:

[00:49] About today's guest, Adii Pienaar, describing his origin story and path to First-generation wealth.
[08:26] What does a family office mean to you, and how did you know what to do when you set out to do this for the first time?
[11:19] How have you and your understanding of value systems evolved?
[13:59] Adii describes his picture of an ideal day.
[16:13] His motivation for diving into entrepreneurship for the 3rd time.
[19:20] How have you explored this concept of multi-generational wealth or the family office?
[29:50] 'Paying a Life Dividend'
[37:34] Adii recounts a significant failure with the lessons learned.
[40:15] About Adii's book: "Life Profitability"
[49:12] What was the motivation for writing and publishing a book?
[53:00] How else do you document your history within your family for the next generation to discover?
[54:40] Adii's letter to his children.

For more episodes go to
BusinessOfFamily.net

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Adii Pienaar.