The Business of Family - Episodes Tagged with “Family Dynamics”

Dave Specht - Preserving Families and Perpetuating Businesses

Mike Boyd — Sun, 14 Nov 2021 17:15:00 +1000

Dave Specht is the Director of the Global Family Business Institute at The Drucker School of Management. Dave is the author of, "The Family Business Whisperer." Prior to joining the Drucker School Dave helped lead a Family Dynamics team at one of the largest Private Banks in the United States where he trained over 2,500 advisors. Dave is married and he and his wife have 6 children. His personal mission is to, "Preserve Families and Perpetuate Businesses."

Standout Quotes:

"The path to helping families is not in having the right answers for them, but it's about having the right questions for them" - [Dave]
"Clients know if you're genuinely curious about their lives, or you're genuinely trying to get into a transaction with them" - [Dave]
"What is your ambitious pursuit, what is it that wakes you up in the morning that you want to chase?" - [Dave]
"Ultimately if we can stay grateful, entitlement can't sneak in… gratitude and entitlements are incompatible roommates" - [Dave]
"One of the bigger challenges that families of wealth have is creating a rising generation with ownership mentality" - [Dave]
"Most of the family wealth that we see lost is due to breakdown in relationships, not poor investment planning" - [Mike]
"Fair does not mean equal" - [Mike]
"You either define what it means to be wealthy or you will be defined by your wealth by others" - [Dave]
"One of the biggest mistakes advisors make is discounting the spouse or not involving the spouse early; they're the ones that are going to nudge the process forward" - [Dave]
"Your worth is not measured in dollars and cents" - [Dave]

Key Takeaways:

Dave is the Director of the Global Family Business Institute at the Drucker School of Management. He is the author of "The Family Business Whisperer". His personal mission is to preserve families and perpetuate businesses.
After selecting Family Business Management as an elective to finish his Masters, Dave realized that several nonfinancial issues were keeping families from making good decisions and this piqued his interest.
Dave worked for a few years with a broker/dealer till he decided to focus more on working with the families directly. He later worked on his own in Family business consulting while creating a Family Business Program at the University of Nebraska.
Asking Inspired Questions: What question are we going to ask that will get the person storytelling so we can learn what they care about? This idea was inspired by the effort he had put into the questions he asked his kids to understand them better. Dave describes the framework for Inspired Questions: Avoid yes/no questions; ask open-ended questions that lead people to tell a story. Secondly, don't ask questions you know the answer to. Lastly, ask questions that don't have a right or wrong answer. Having genuine curiosity is much more important than just seeing the interaction as a transaction.
Although not from a wealthy family, Dave had learned some dynamics of wealth from his family, watching and understanding their actions in regards to finances.
Dave encourages his kids to have an ownership mindset and not limit themselves, even while keeping the values of a good honest job. What is your ambitious pursuit? If we focus too much on giving the best to our children, we may only pass on valuables rather than values.
Raising children amid wealth (The 3Gs): Gratitude, Goals, and Grit are tools Dave recommends. Gratitude prevents a sense of entitlement. Having goals helps kids translate lessons learned as they grow while having a worthy pursuit more valuable than money. Grit involves knowing how to say No to your kids, when yes is always an option. How do you bail your kids out when they have trouble?
Driven by his motivation to have as large an impact as possible in the world, Dave wrote his book titled "The Family Business Whisperer", targeted at both families and their advisers.
Families often don't train the next generation to become owners because we don't want them to fail while we're watching. However, part of this training can be done by co-investing with kids to meet some of their smaller needs. Additionally, building a working shared ownership mentality among kids can be difficult but is necessary, so it helps to start with small shared decisions.
It is important to start to see wealth in the different forms it takes, from money to values and now, wellbeing. Parents need to define what it means to be wealthy, particularly understanding the different dimensions there are to wealth as it would be a mistake to simply focus on financial wealth. If we can get people to budget time and resources to develop other forms of capital in the family, it would improve the relationship with financial wealth. Half the battle is just showing up, making out the time to focus on the family, even though it is usually messy in the beginning.
Mothers of Influence: Often a patriarch is spearheading the family business, however, it is necessary to recognize those who played a support role. These groups of people are often the story keepers of the family business, and ultimately their perspective of the business determines the kind of story passed on to the kids, which affects the mindset of the kids towards the business. Advisors often make the mistake to discount the spouse; no better person is as motivated in pushing the process than the mothers that are fully invested in their kids.
Determining the role of spouses in inheriting a family business can be very tricky, however, it helps to put in perspective what the goal is, regarding the spouses.
Families should first identify their hopes and goals concerning the family assets, after which the technical expertise can be invited to achieve those goals. Unfortunately, most families always start by inviting technical expertise to manage the asset before realizing the goals of the family members vary significantly.
The first step to successfully managing multigenerational wealth is to find someone that will ask the tough questions to identify the hopes and fears of family members.
Dave's goal at the Drucker school is also to have a global impact, using principles attached to management that align with the methods already employed by the school. It also provides a noncommercial environment to bring families together to be vulnerable and learn together; particularly the rising generation of family business leaders.
From Dave to his kids: Your worth is not measured in dollars and cents. Happiness is found in ambitiously pursuing worthwhile goals, and that has nothing to do with money either.

Episode Timeline:

[00:50] About today's guest, Dave Specht.
[01:40] Dave shares his backstory.
[08:15] Asking Inspired Questions.
[15:13] How has your understanding of family dynamics played out in your family?
[18:21] How to appropriately raise children amidst wealth.
[22:42] The inspiration for Dave's book, 'The Family Business Whisperer'.
[24:55] Ownership vs Stewardship
[34:42] Did you introduce this idea of passing down different forms of wealth asides from money?
[39:18] Mothers of Influence.
[43:10] Discussing identity as it relates to multigenerational family business and wealth.
[48:00] How can a family new to substantial wealth start working towards multigenerational success?
[50:00] What do you hope to achieve at the Drucker School?
[52:00] Dave's message to his kids.

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Special Guest: Dave Specht.

Juan Carlos Salame - Scaling a Third Generation Ecuadorian Retailer & Credit Provider

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

Juan Carlos Salame’s family business began in Guayaquil in 1944. Domingo Salame, his grandfather, began selling at the local market prepaid vouchers so his customers could buy products at different local stores and, then, pay Mr. Salame in installments.

A revolutionary idea that many decades later evolved to what we know today as credit cards. He later put in place a retail shop to sell the products himself. This business was transitioned to his son in the late 70s. A couple of stores have grown into a corporation with over 70 stores in Ecuador and a strong ecommerce presence.

The business model focuses on financing products to a population, many of whom, do not have a credit history yet. Juan Carlos and his brother have taken over the business in the last few years putting in place top technological systems and curating an innovative culture.

Standout Quotes:

"Be respectful of everyone regardless of their position, their role, or what they do with their lives" - [Juan]
"Be very low profile...with your life, with your business, Humility in that sense" - [Juan]
"I would seriously encourage anyone to look for a mentor in the early stage who will help guide them through the different opportunities that they would face in their lives" - [Juan]
"I would encourage anyone in their twenties or early thirties to form their own business, especially if they want to be like a CEO... they have to quickly learn and fail on a smaller scale" - [Juan]
"Founding your own business is like 3 MBAs in one" - [Juan]

Key Takeaways:

Juan describes the original business model which is still in play today. His grandfather had started selling coupons which allowed customers to buy products from other stores now and pay back in installments to him. He later opened his store to sell those products, in effect, he was a credit provider.
The business model is targeted at customers who don't get credit from their banks or lack a credit history to support them getting it.
The biggest aspect of the business is now e-commerce, especially following the lockdown in the pandemic
Describing that he was not forced into the family business, there was always some level of expectation that he would join the business, and he had already started getting involved at an early age. However he had left to get an MBA in the US, and decided to start his business rather than return to the family business, but after a few years, his father called him back. He stayed for a while and quitted since his working relationship with his father was poor.
Juan shares that he finally went back to the family business with conditions given; the first was to have a board member to sort out rifts when they come up, the second was not reporting directly to his father.
The most challenging aspect of the business they had to change, upon joining the family again, was the culture of the company in order to attract new talent. Some managers also had to leave, as there was a need to work with people who were more aligned with the goals of the company.
Discussing his process of implementing change, Juan shares that his first step is to work with the people already in the company, if this fails, he then persuades the workers to make the necessary changes, and if that also fails, he would find someone else who can work with him.
History did repeat itself as Juan's father also had issues with his father regarding joining in and transitioning into the family business.
A key source of his knowledge was starting his own business, and also putting in the effort to be exposed to different industries by participating on their boards.
Investing in time with the kids has become a top priority on the list of worthwhile investments?
The family decided to assemble a book 2 years ago, which would tell the story of the family business and the family as well as the future of the business.
Key lessons from Juan's journey: Be very strategic in how you go about implementing change. Being intentional about communication in the workplace and within the family is also very necessary as part of a family business.
From Juan to his kids: Look for something that you want to do in life, something you enjoy, and something that adds value to the world. Juan would also encourage his kid to put the best effort into anything worth doing, find a mentor, and within the early twenties start a business because the knowledge gained is like 3 MBAs in one.

Episode Timeline:

[00:49] About today's guest "Juan Carlos Salame"
[02:00] Juan narrates the origin of the family business.
[08:30] How did you come to join the Family business?
[18:36] What changes have you been able to implement since you and your brother joined in?
[21:40] Juan shares his approach to making drastic changes in a company.
[27:56] Is there a multi-generational family plan in place for your children?
[30:15] Have there been any transition issues since the business started?
[31:45] How have you learned and grown on your journey?
[35:12] What is the most worthwhile investment you have ever made?
[36:13] Highlighting Values instilled in Juan which he passes on to his children.
[37:09] Does your family invest in anything intentionally to try and document its history?
[38:28] Juan shares lessons from his growth process
[41:45] What would you say is your legacy?
[43:05] Juan's letter to his 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: Juan Carlos Salame.

Jeff Gould - Generational Real Estate Families with Lineage Asset Advisors [The Business of Family]

Mike Boyd — Mon, 14 Dec 2020 19:00:00 +1000

Jeff Gould is the founder Lineage Asset Advisors (LAA) a full-service commercial real estate advisory and consulting firm providing customized commercial real estate services to help families make seamless transitions with their properties – from one generation to the next.
Lineage collaborates with estate planning advisers to develop and implement portfolio solutions that meet the goals of multiple generations. Their aim is to preserve and enhance family wealth and legacy during difficult life transitions while establishing a culture of respect, peace of mind and financial sustainability.

Standout Quotes:

"Like most forms of financial planning, the sooner you plan ahead, the much easier it is to implement and follow through" - [Mike Boyd]
"Even if the family is risk-averse, I think it is really critical for them to understand that the risk of doing nothing may still be higher than the risk of doing something if they plan to keep the assets" – [Jeff Gould]
"I think many families need to stay nimble in the future and really adjust for change" – [Jeff Gould]
"Wealth and wealth transfer doesn't always lead to happiness, in fact in many cases it leads to conflict and challenges and strife among family members, so we want to try to shift that conversation, and that takes effort and planning" – [Jeff Gould]
"Life is generally empty and meaningless, and we have the ability to establish positive and productive meaning in the midst of a world in constant transition" – [Jeff Gould]

Key Takeaways:

The ideal scenario would be to involve Jeff early in planning for the transition but the reality is that he is engaged much later when things need to move quickly.
There is a unique skill set that is needed to be a trusted adviser to help the family understand what they have in regards to Real Estate, and develop a plan with that Real Estate called a "Shared Asset Ownership plan" that considers the variables of the next generation.
The 3 phased process includes Discovery, Planning, and Implementation.
Addressing the issue of Deferred Maintenance; the 'Do Nothing Scenario' and the 'Do Something Scenario'
5 Transition Strategies in Real Estate planning: Communication and Education, Conflict Resolution and Accepting differences, Rediscovering your commercial Real Estate portfolio, Developing a mindful asset transition plan, and Implementing the plan and adjusting for change
Jeff's advice to Real estate entrepreneurs: Creating your estate plan and developing a shared asset ownership plan that aligns with the next generation.
Jeff explains that he helps the family understand that it is a fortunate situation to be carrying on and stewarding the transition of the assets rather than focusing on the personal value of the asset to each family member.
Be respectful to everyone you encounter.

Episode Timeline:

[00:49] Jeff Gould and his professional background
[06:06] Do you usually get called in at the time of a transition event in a family or ahead of that time to plan a healthy transition?
[08:37] Jeff gives a general picture of the different categories of clients he works with.
[11:12] What are the particular challenges with the real estate space that create the need for Jeff's specialty, to steward assets in family transition rather than a generic accountant or financial planner?
[16:51] Jeff describes the 3 phased process of his work with families
[24:00] Addressing Deferred Maintenance
[30:50] What would you say is the appetite for innovation in Real Estate?
[35:06] 5 transition strategies in Real Estate planning
[39:44] What advice would you give to a founding generation or Real Estate entrepreneur to best prepare themselves to have a great plan in place?
[43:24] Do you work with any families that are multigenerational into the 3rd, 4th, or 5th generations?
[49:38] From Jeff to his 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: Jeff Gould.