The rise of artificial intelligence is not on the horizon.
It’s already here. Read Harvard Business Review, Forbes, The Conversation app, or any news post. As Peter H. Diamandis writes in Metatrend #2: AI & Quantum (2024), the question isn’t whether AI will change the world- it’s how quickly, and how well prepared we are to adapt. I’m a fan of his books.
Since 1997, I’ve worked with leaders across several sectors using the Action Learning model– a proven framework that aligns real-world problem-solving with strategic learning. In that time, I’ve watched leaders panic or pivot in the face of digital disruptions. You have seen the panic in 2008. Today is the pivot.
The key difference? Those leaders who thrive don’t wait for government programs or corporate re-skilling. They invest in mastering three core skills that shape their adaptability, agency, and long-term success. That’s why I earned my PhD in business psychology in my 50s… Here are some highlights. You can master these skills.
The Three Essential Skills in an AI World
In a recent Moonshots podcast conversation between Peter Diamandis and Tony Robbins, they outlined three core competencies to help leaders remain relevant:
Pattern Recognition, Pattern Utilization, and Pattern Creation.
These three skills are not new to those of us who practice Action Learning. In fact, they are embedded into the very DNA of our model.
Let’s break them down and show how they’re alive in the executive leaders I’ve coached for three decades. YOU can apply these three skills immediately.
1. Pattern Recognition: Learning from Data
Tony Robbins describes Pattern Recognition as the ability to look at history, human behavior, and technology trends and say, “I’ve seen this before.” The result is less fear.
In Action Learning, we often begin with what Revans called “programmed knowledge” and “questioning insight…” the act of recognizing patterns in current systems, processes, and outcomes. I teach leaders to ask questions like:
“Where else have you seen this behavior?”
“What patterns are repeating here?”
“What’s being ignored?”
“What numbers and words can we us to describe this behavior?”
For example: In a healthcare company facing massive turnover, our Action Learning team mapped resignation data and recognized patterns of burnout following project cycles. By naming the pattern, the client was no longer surprised by attrition. They recognized seasonality and then began to prevent it.
2. Pattern Utilization: Acting on What You See
Recognition is only useful if it leads to effective action. As Tony Robbins notes, civilization began when we learned to use the pattern of seasons—planting in spring, harvesting in fall. The leap from fear to control came through utilization. Today is the season of springtime.
In Action Learning, we emphasize “taking action and reflecting on the results.” A team that sees a pattern of client dissatisfaction, for example, must test new workflows, measure response times, before they can adapt. Tools like surveys, interviews, observations, 360 assessments are helpful.
For example: One healthcare client noticed repeated delays in patient discharges every Friday. Instead of managing around the bottleneck, they used Action Learning to test discharge protocol changes. They used cross functional teams, called Action Learning Sets, to explore solutions. They saw a 17% improvement in weekend flow within 60 days. And yes, automation helped immensely.
3. Pattern Creation: Designing What Comes Next
This is where great leaders shine. This is where YOU can shine.
Diamandis calls it the highest skill: creating new patterns. Not just responding to the world but reshaping it. He founded Singularity University, the XPrize’s, and the Open EXO community to embrace converging technologies. In Action Learning, we guide teams to generate new frameworks, policies, and cultural norms based on data and learning.
This level is visionary. It’s where leaders become creators. Practical creators of one solution after another.
For example:In a regional asphalt company, an Action Learning team created a new RACI-based scheduling protocol that reduced field crew conflicts by 42%. That new pattern, tested and refined by a newly promoted operations manager, became company policy within one quarter.
The BIG Identity Shift: From Manager to Creator
This AI revolution is not just about skills. It’s about identity.
The Action Learning model pushes leaders to shift from “problem manager” to “solution creator.” That’s the identity shift Robbins, Diamandis, Revans and I are describing. We say, “Stop managing problems. Start creating solutions.”
FACT 1: You won’t be replaced by AI. FACT 2: You’ll be replaced by someone who uses AI more creatively than you do… unless you become that person first.
If you’re interested in diving deeper into the frameworks behind this post:
Diamandis, Peter H. (2024). Metatrend #2: AI & Quantum.
The Future of Family Offices: Why Multidisciplinary Teams Are Essential
The goal of every family office is the same- to serve the financial and capital needs of current and future generations. However, the process is changing.
We will always require attorneys and wealth advisors to “stay in their swim lanes” and practice compliance. That will never change. Those silos are necessary, but NOT sufficient. Today, cross functional teams of interdisciplinary advisors are collaborating and providing external expertise.
Recently I was asked to create video recordings for a multi-family office (MFO) with over $1B in assets under management. They wanted me to share succession planning advice with their 80+ clients. Last week I talked with my new friend, Charmaine Tang, CEO of Orca Americas, about the need for people and technology to model innovation for family offices. Also last week I invited Brannon Fisher, a MFO partner, to share advice with our Next Gen Peer Group leaders when we met in Denver. Minutes ago I spoke with Bradley Franc, CEO of Succession Strategies, who said, “We don’t do what you do. We should partner.”
Notice the pattern?
We all have such meetings, because we all serve the current and future needs of our clients.
I can only imagine that such collaboration will accelerate. There is a growing trend toward building multidisciplinary teams within large family offices. Those internal teams may include specialists from various fields together to collaborate and provide comprehensive advice. Naturally, each advisor brings unique legal, financial, or relational expertise. Every smaller Family Office needs to do the same. They need to develop external teams of expert advisors. The power of multidisciplinary collaboration lies in our ability to address the full complexity of family dynamics and wealth management.
Wealth advisors, thankfully, are focused on maximizing assets for long-term gain. Attorneys and insurance advisors focus on protecting assets and minimizing risk, thankfully! Both roles are critical and are NOT sufficient for Next Gen leaders who expect more transparency, digital access, and opportunities to learn.
Family Offices, like any social organization, need to evolve. Every aspect of the family’s wealth or legacy deserves expert advice.
Navigating Intergenerational Conversations
Consider a typical family office meeting: the Elder Generation is planning for retirement and succession, while the Next Generation is learning about investments and long-term financial planning. In the middle, a team of advisors—legal, economic, and often behavioral psychologists (like me) —helps facilitate the conversation.
These discussions may be delicate. The Elder Generation needs to learn to bite their tongues. They need to encourage the Next Generation to ask questions about access to funds, investment strategies, and their personal goals.
For younger family members, these meetings present an opportunity to learn about critical topics like compounding interest, wealth distribution, and long-term planning. I’ve been facilitating a series of family meetings with three Elders, five Next Gens, and three wealth advisors from Northern Trust. By the end of the last session, the Elders were beaming with satisfaction. A multidisciplinary team ensures that these meetings are not just about financial details but about fostering open, constructive dialogue across generations. Advisors from different fields can help ensure that the right questions are being asked and that all voices are heard.
The Expanding Role of the Family Office
Family offices have historically focused on wealth management—handling investment portfolios, estate planning, and tax strategies. But the role of the family office is evolving faster than ever. Many family offices are expanding toward a more comprehensive model that addresses both financial and Family Capital.
The Family Capital Model includes five key areas:
Health and well-being
Family governance and decision-making
Succession planning and education for the next generation
Family dynamics and interpersonal relationships
Risk management, both financial and relational
This expansion reflects a broader understanding that to preserve a family’s legacy, the focus must be on the whole family, not just its financial assets. How do Family Office leaders support that broad need? With timing and expertise.
The Importance of Multidisciplinary Collaboration
Timing matters. Bringing in the right expertise at the right time is critical for any family office. A well-rounded team of advisors can ensure that a family’s needs—whether related to wealth, legal matters, or family dynamics—are met efficiently and effectively. When a Family Office relies solely on financial experts, it risks overlooking other vital family legacy elements. A multidisciplinary team mitigates this risk by ensuring that all aspects of the family’s life and legacy are considered in decision-making processes. Quarterly meetings work well. An annual cadence of ownership meetings is a minimal requirement.
Expertise matters. Advisors from different disciplines often approach problems from unique perspectives. After years of formal schooling, credentialing, and serving similar clients, those perspectives are reinforced and they bias every advisor. Thankfully! Think of any trigger event, like the sale of an asset or death of an Elder. Financial advisors are adept at identifying the right moments—like liquidity or birthdays or significant life milestones—to reassess strategies. Legal and insurance advisors ensure that these strategies are sound from an asset protection or risk management perspective. Family psychologists or governance consultants may facilitate conversations around succession planning, interpersonal relationships, and decision-making structures. Nothing is more crucial.
Today, more than ever, families face complex challenges beyond financial management. We all require a team that can holistically serve our needs for expertise in health, wealth, and relationships.
Embracing the Complexity
Let’s assume that Family Offices will play an increasingly important role in managing wealth and the complex needs of families. The sheer scale of assets expected to be transferred between generations in the next decade—estimated to be over $80 trillion USD – makes succession planning and Next Generation leadership development essential priorities for Family Offices. That’s why our team partners with Family Offices. People need our 360 assessment process to confirm who has leadership capacity and what behaviors to develop. People need our Peer Groups to improve communication, reduce conflict, and reduce anxiety about succession.
Let’s also assume that technology will also play a more significant role. Advanced tools, from AI-driven assessments to virtual platforms for family collaboration, are already being used to enhance family governance and communication. Can you imagine a hologram with your 100-year old Elder or Founder in a discussion? Can you imagine 5 generations of family in a meeting, rather than 2-3 generations, as a result of enhanced lifespans? Those technologies will never replace the need for human expertise. Curiosity and humility can never be replaced by AI, and those are two competencies worth developing in most family systems.
Preparing for the Future
To navigate this evolving landscape, Family Office leaders must ensure that their teams can handle both financial and family capital needs. Multidisciplinary teams are not just a trend—they are becoming necessary for Family Offices looking to sustain their success across generations. External advisors provide scaled solutions and reduce costs.
For advisors who serve Family Offices, now is the time to evaluate whether your advisory team is comprehensive enough to address the full range of family needs. Are you prepared to guide your clients through complex psychological and social transitions?
If not, consider expanding your advisory network to include experts who can help you address the evolving challenges facing family offices today. We can help.
Market Analysis for Small Family- Owned Businesses in the US
Yesterday a client said, “We’re too small. We can’t afford consulting. We make less than $1M in annual revenue. We build decks and patios. This business pays the bills. I guess it’s my retirement plan…”
Sound familiar?
Yikes. It sounds short-sighted and dangerous to me!
People provide solutions… and customers buy solutions. That’s the bottom line.
This business leader does not ONLY build decks and patios… Not really. That would be short-sighted. He creates “outdoor living experiences for loved ones.” Something remarkable.
How much would you invest in a backyard party for your child’s birthday? Or your family reunion? Or your weekend football game party? Or that special bottle of wine or bourbon?
If you invested $30,000 into an outdoor living redesign, wouldn’t you expect decades of priceless experiences with your loved ones? That solution is priceless.
Case Study: Joe, Part 1
A second business leader said, “I don’t think I have anything valuable, so when I retire, I’ll just let it shut down.”
I asked, “What’s your annual revenue and earnings?”
He said, “Our revenue is about $1m/ year and I make about $250,000 year. Everything else goes back into capital expenses and employee compensation. We’ve had a good life. I’ve raised my family.”
I asked, “What if you assumed 4x earnings, and someone offered you $1,000,000 to buy your business next week? Would you retire?”
FACT: Most business leaders don’t know their value and succession options.
Market Analysis Figure 1:
Check out these details… do they look familiar to you?
In every corner of the world, in every business sector, small businesses define the success of every economy. They are the social fabric of communities. They define success. They create over 65% of jobs and GDP in the US, and a higher percentage in Asia.
Most of the time, business leaders quietly pass on their business to family members or capable leaders. Sometimes there is conflict because of bad communication. Those succession planning discussions require expert advising from consultants.
“Do-It-Yourself” consulting or “Consulting From a Book” always leads to failure. Don’t waste your time or money.
I hire experts to build outdoor living experiences. Or to do any plumbing, electrical, legal, and financial work. Don’t you hire similar experts?
Market Analysis Figure 2:
How much would you expect to invest in a consulting solution?
There’s no need for confusion about pricing. That approach only leads to distrust.
• Consulting Needs are problems that require external solutions, such as conflict resolution, strategic planning, or leadership coaching.
• Consulting Fee Range (Phase 1: Initial Discovery/Assessment) includes the initial consulting phase, such as discovery, assessments, and strategic recommendations.
• Consulting Fee Range (Phase 2+: Annual Consulting Phases) covers ongoing consulting needs in subsequent phases, including implementation of solutions, leadership coaching, and strategic execution over a year or more.
Case Study: Joe, Part 2
Let’s return to the first example of the business leader named Joe, who doesn’t know the actual value of his business. Joe has three options:
1. No investment in consulting. When Joe retires the business dies.
2. Small investment in consulting, $15,000- 40,000 over 12 months. When Joe retires the succession plan may enable the business to continue.
3. Larger investment in consulting, $75,000 – 200,000 over 5 years. When Joe retires the succession plan may provide over $1,000,000 in real value to the owners or their benefactors. The community retains jobs. The business legacy may continue for generations.
Sound familiar?
The solution for most family-owned business leaders is NOT venture capital or private equity investors. They will extract value and disappear within 3-5 years. That would be short-sighted and dangerous.
The solution is to invest in consulting solutions, such as “family capital for loved ones.”
Succession Advisory Teams
The only way to win a football game is expertise on the offensive team, the defensive team, and the special teams. Each team measures success differently to “put points on the board” or “hold them to three downs” or “run it back.”
In the same way, a Succession Advisory Team brings multi-disciplinary experts together to achieve a win.
Lawyers provide risk mitigation and contractual agreements. Accountants provide business valuation and options. Wealth advisors provide investment options. Business psychologists (like me) facilitate the process.
How d you accelerate change in the Thanksgiving season, this season of family gatherings?
I’m often surprised at what business psychologists know that family leaders could benefit from knowing and practicing… here’s my favorite example.
As we approach the season of family gatherings, you may want to share this post with your loved ones!
All family leaders struggle with organizational change. How could our relationships be anything else? Families are complex. Family enterprises are infinitely complex. No one likes to be told to change. We all want to accelerate change, but many people don’t know how to do so.
We all bring our biases and adopt heuristics to reduce that complexity. Attorneys say, “We mitigate risk.” Wealth advisors say, “We leverage capital assets.” Next Gens say, “We want to innovate.”
This post answers that ancient question, “How can family leaders accelerate change?
Answer: Practice PsyCap
Deliberate practice leads to change, for any athlete or business leader. What would happen if we practiced a more pervasive and universal view of capital?
We all use heuristics (patterns for what works) to reinforce the structures that reflect our worldview or experience. One common example is the multidisciplinary views of capital, that includes financial, social, human, family, legacy, and intellectual views of capital.
As Fred Luthans states, “PsyCap has and continues to take off across the world … I have over 166,000 citations of my research which has been awarded in the top 1% of all researchers in all fields in the world and ranks #1 in organizational behavior textbooks. In other words, I am very happy with how PsyCap is going, especially in the global economy.” (direct communication 9.5.24)
The HERO model is more than a convenient acronym. The HERO-within model is a critical approach that leaders can apply at multiple levels- individual, team/ family, and organizational/ societal. I’ve practiced the HERO model with countless clients for decades. You can also do so.
Leaders, by definition, influence the behavior of followers toward a better future. They practice public optimism.
Practitioners, by definition, practice new behaviors and share them widely. My opinion is that practitioners have a fiduciary responsibility to practice both new ideas (innovation) and celebrate strengths (stability) every day.
The purpose of this article is to introduce the HERO model, like a new vocabulary term, and examples that can be applied by family leaders, and advisors in any discipline.
I invite you to assess how you can apply these practical examples with yourself, your family, and with the clients you serve.
Imagine that you are building a house with a garden that you hope will support generations of loved ones. Hope is defined as “the will and the way” to build a better future (Lopez, S.J. (2013) Making Hope Happen; Create the Future You Want for Yourself and Others. New York, New York: Simon & Schuster). Every founder believes “I can build this product or service.” Their hopes are often defined in founder’s history books or videos, vision statements, the stories told and re-told at gatherings.
Efficacy is the capacity to build that new house, to get the job done. We all use blueprints such as values statements, family constitutions, charters, phased strategic plans for new projects.
Resilience is our capacity to respond to adversity by returning to the same or a better level. Examples include our responses to global disease, market adversity, or loss of our loved ones.
Optimism is our choice to believe in a positive outcome, such as well-being for our children and grandchildren. All four of these competencies can be measured, taught in under 90 minutes, and developed over time. The PsyCap impact is more significant when all four competencies are measured (a second-order effect) than when only one or three competencies are measured. (Luthans, F., Youssef—Morgan, C.M. & Avolio, B.J. (2007). Psychological Capital: Developing the Human Competitive Edge. Oxford, England; Oxford University Press)
OK, so what?
The HERO Model applied at the Team/ Family level
Teams are defined as groups with a shared purpose, such as a family, board, executive leadership team or family council. Work teams often include more non-family than family leaders. PsyCap can be developed for any team!
Here are some good, better and best practices.
1. Define your family. Discuss it, write it and review it regularly. Your definition of family may be based on blood, shared beliefs, culture, religious norms, generations, or restricted to specific assets, like who can use the beach house. Then use the HERO vocabulary in your personal meetings and vacations and investments. Next Gen leaders may have a different expectation for “family” because societies always evolve.
2. Regular Meetings. Effective meetings have a cadence, and structure, designed to accelerate engagement. For many years I’ve used a “HERO Update” as a check-in or “Getting On Board” (GOB) activity. It’s on the agenda and I open the family meeting by asking, “Who has an example of someone else being a HERO?” When we recognize the desired behaviors of others, and lift those examples, we get applause or celebration. The result sets the tone for public validation, which is the most significant motivator for desired behaviors. Great meetings require that we focus on the successes of others. Family leaders need to manage that process.
3. Schedule The Talks. Elders sometimes avoid conflict because they don’t know how to talk with their loved ones about asset transfer or legacy. Communication skills can be developed, in small groups and in families. One reason for practitioners to team with other advisors with different skills (legal, wealth, behavioral psychology, etc.) is to manage the process and accelerate those talks. (Cite https://journals.sagepub.com/doi/abs/10.1177/0894486514538652 )
4. Share Legacy Conversations with your heirs or Elders about your values, mission statement, hopes or fears. Notice HOW they say whatever they say. Add to your legacy conversations any attitudes or behaviors you want developed. Remove from your legacy conversations any attitudes or behaviors you want eliminated. Take good notes, use a spreadsheet, record them on Zoom, and share your observations with others. Family gatherings during this holiday season is a perfect time for 1:1 walks. From Ghandi to Jesus to your grandfather, leaders have led change by walking and talking- called “twalking” and taught at Stanford’s Business school. Try it.
5. Love Letters. Write a private love letter to each of your heirs and elders. Use the HERO vocabulary to structure each letter. Share them annually at Christmas, Thanksgiving, anniversaries or birthdays. Yes, I’ve done this activity for decades and it leads to tears and statements like, “This is my favorite Christmas tradition.”
6. Celebrate PsyCap in others. The biggest motivator of human achievement is public recognition (not cash). We can measure the use of the words “hope, efficacy, resiliency and optimism” in AI meeting summaries, investor reports, and any meeting. Then we can create a trend report or PsyCap Index, just like an Edelman Trust Index or Human Capital Index (see the impact of ISO 30414). All Family Business leaders use these words. Few leaders measure their impact.
7. Practice New Rituals. Every religion, school and family has rituals to reinforce shared beliefs. When we practice prayers, mindfulness, gratitude and the HERO model, then we are more likely to experience those outcomes. One of my clients has a 6’ statue of The Bear, representing their founder. Each time he walks through the lobby he states “Hello Bear” out loud. They share successes in a newsletter called “Bear Tips.” What new rituals do you need to adopt or nurture?
Conclusion
Like every family leader, I’m regularly reminded of how little I know. Our children remind me! I ask for advice, and read, and on good days I listen well. Then I try something new. The PsyCap term may be new to some readers. However, the words “hope, efficacy, resilience and optimism” are ancient and familiar.
If we embrace the HERO model for our loved ones and our clients, then we are practicing ancient wisdom, in a new way. (cite Gray, D.W. (2018). Positive Psychology Coaching Protocols: Creating Competitive Advantage for Leader Development. Ann Arbor, MI: ProQuest).
My experience is that Psychological Capital describes changes for family leaders, and family-centric values over a longer term than any other measure of capital. Please contact me if you share that bias or want to continue this conversation.
Author bio:
Doug Gray, PhD, is the CEO of Action Learning Associates www.Action-Learning.com and a champion for Family Business leaders. His most recent book is The Success Playbook for Next Gen Family Business Leaders (2024). His projects include www.AssessNextGen.com and www.Family-WealthNetwork.com
List the top 5 people who are most important in my life today.
Instructions:
For each statement below, imagine how those who know you well would score you. Use a scale of 1 (low) to 10 (high). After scoring yourself, add comments for additional insights or actions to improve.
Hope: “I have the “will and the way” to achieve my goals. Score: ____
Efficacy: “I feel confident in my ability to take on challenges and achieve desired outcomes.” Score: ____ Comments: ________________________________________________________
Resilience: “I can bounce back from setbacks and adapt to changes.” Score: ____ Comments: ________________________________________________________
Optimism: “I focus on the positive aspects of situations and believe in the best possible outcomes.” Score: ____ Comments: ________________________________________________________
Humility: “I value the contributions of others and admit my mistakes.”
Curiosity: “I actively seek new knowledge, ask questions, and explore diverse perspectives.” Score: ____ Comments: ________________________________________________________
Collaboration: “I work effectively with others, fostering trust, and contributing to collective goals.” Score: ____ Comments: ________________________________________________________
Accountability: “I take responsibility for my actions and follow through on commitments.” Score: ____ Comments: ________________________________________________________
Empathy: “I show understanding and compassion toward others’ experiences and emotions.” Score: ____ Comments: ________________________________________________________
Vision: “I communicate a clear and compelling vision that inspires others to act.” Score: ____ Comments: ________________________________________________________
Reflection Questions:
What do these scores and comments suggest about your current leadership strengths?
Which area(s) do you most want to improve over the next year?
How can you leverage your relationships with the five most important people in your life to support your personal and professional growth?
12 months from now, what are 1-2 important aspects of your life that you would regret losing? (These are the 1-2 aspects to focus on ahead).
Naturally, this self-assessment can be repeated at any time to track your growth and identify areas for continued development.
If you have advice on how to improve this self assessment, please comment or reply directly.
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