Family culture and strong team dynamics are integral components of a successful family business. Matt DiFrancesco talks about how families can restructure and build trust to reach their vision for their life and business.
Suppose you have a family business and find it difficult to understand the exact expectations of every key individual. Then, it’s time for a family meeting. Schedule a free 20-minute conversation with Matt DiFrancesco from HighLift Financial to discuss your business situation and its solutions. Matt has acted as a moderator in countless meetings where the individuals could restrategize and regroup for the business’s success.
“It is crucial to develop a team-oriented mindset to thrive in your family business.”
Personal Mindset
Whenever I am asked this question, “What makes a family business successful?” my answer stays the same. It’s building culture into the business. This is something that I have discussed with one of my previous guests Ron Delaney who is a successful business owner of “Ron’s Collision Center” in Somerset, Pennsylvania. Ron agrees that the first step to achieving growth and positive culture is working on your mindset.
“My business’s core philosophy is to build a successful life and business for you.”
The entire process is divided into a series of small growth milestones. So, when the leader successfully creates the mindset, it is all about communicating it to the family. There are a lot of discussions and alterations before the culture is carried over to the business.
Family Meetings
The snowballing of cultural creation begins with family meetings. In addition, the key behind the family meeting is really for the family to start to get together. As for my role, I act as the facilitator. So even when they try to direct things to me, I always deflect back to the family.
If you’re putting your people, family, or key employees first, you have projected your business and life for growth and success.
The goal of the family meeting is to keep the conversation flowing and start to help them understand that everybody needs to be heard. The deeper we go in discussions, the more the family members realize what human capital every individual brings to the table.
There are instances where I have witnessed that the father is dominating the conversation. That is when I try to engage the wife and the kids because I can see the fault lines and where precisely the tension lies.
The Pyramid
Whenever there is an imbalance of communication, it’s clear that the team’s foundation is fractured. Imagine “trust” as the bottom part of the pyramid. That is the foundation. When we have an absence of trust, the result is invulnerability that people cannot open themselves up.
After securing the foundation of trust, we move up the pyramid. The next stage is the “fear of conflict.” The family does not want to engage or express their true feelings because they don’t want to disagree with each other.
If the family has a strong foundation of trust, they can have harmony within the team and express their views although they will not agree with each other. It is all about showcasing what is behind the curtain. One great way to move along the meeting is to create artificial harmony.
Once the family members are confident that they can share their actual views rather than hiding them, that’s when we move up the pyramid. The third step is commitment. For instance, if the business faces a significant issue or a fruitful opportunity. Then, the members must commit to overcoming the issue or working hard to avail themselves of the golden chance to grow their business. The key is to develop a sense of accountability across the team.
The peak of the pyramid is the “attention to results.” To sum up, family members communicate to build trust that allows conflict. The conflicting views can converge into specific decisions and strategies that call for commitments. All of the key members have to be accountable for particular results. If this process is implemented as good as it sounds, then there is no doubt that the business will see effects of that, and the family will feel much more unified.
The Link of Unified Team, Growth Culture And Financial Planning
When I’m suggesting the idea of “mindset” or “creating a vision for family and teams”, the instant reply is that how does that fit into the financial planning aspect that I do? I have a virtual family office that focuses primarily on numbers. My answer to this query is that I can’t get the financial plan until I have the client’s and the family’s mindsets.
Another reason is that my goal is to create multi-generational legacies. The aim is to be far-sighted and not develop growth plans for a business that will be in the hands of the current generation only. So, we are not limited to creating and passing on a culture that every member agrees with to a business. We also take into account the matter of succession. This becomes clearer in the meeting.
So, if the kids are not interested or want to diversify, that requires a tremendous amount of financial planning. We cannot just look at the numbers and talk to the CEO about the next steps. Hence, the pyramid process gives a sound understanding of the current and future needs. In addition, it communicates the expectations of every individual that can have a severe impact on the business.
Get In Touch With Matt!
Schedule a private consultation strategy session with me today if you want to go through the entire process and find that it will significantly impact your business. I will go over the family meeting process in detail and discuss your business situation. In this way, you will analyze the areas that need work.
I have always stressed that it is integral to have a strong team. This also includes the 15 key people that must be on your external team. These are the professionals that are not necessarily involved in the day-to-day part of your business. Nevertheless, they have a special role to play.
Disclaimer
The information compiled and posted here solely represents the opinions and views of the guest. It might not necessarily be similar to the opinions and views of High Lift Financial. The availability of this content only serves educational and informational purposes. It is not a substitute for tax or legal advice or professional investment.
Always make sure to consult your financial advisor with any queries related to personal or business planning. DiFrancesco Financial Concierge, LLC. d/b/a HighLift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania’s regulatory oversight.