A grey-haired patriarch recently told me, “I love my kids and grandkids. But I don’t trust their ability to manage my money when I’m gone. My lawyer tells me that I need to restrict their access. What do you recommend?”
This Family Business Chaos myth assumes:
That fears motivate most human behaviors
That Elders need to restrict access to financial assets
That the Next Gen family members are unable to manage money
That advisors can recommend effective solutions
How silly.
Tragically, I’ve met “Family Business Consultants” who boast about $100,000 annual retainers to “manage the process.” They presume that family business leaders are inherently unstable, dysfunctional, heading toward chaos. With a wink they say, “And who knows when you will need me?”
How tragic and silly.
I call it the Family Business Chaos myth. In future posts I’ll share some more related myths. In this post, let’s look at each of these 4 statements in turn.
Fears do motivate most human behaviors. When we are hungry we eat. When we are threatened we fight. When we are confused or uninformed we create stories to “fill in the silence.” I recently heard about two Elders who anticipated a visit from their niece, whom they had not seen in 15 years. They created stories to explain the visit, from “she must have cancer” to “her husband may have abused her.”
In the same way, Elders often create stories to explain their kids and grandkids. It’s a delightful, ancient past time! When I visit Elders they may entertain me with stories, just as we drink lemonade on the porch. They often voice fears such as “she will never find a man who appreciates her” or “he couldn’t make money if we served it on a golden platter.” Those stories are entertaining. But they may be downright silly.
That idea that Elders need to restrict access to financial assets is ancient, and often based on some local precedent. We all repeat stories that reinforce our biased beliefs. Have you heard about our neighbor named Bubba who received a trust fund when he turned 21, then became an opioid addict? Confirmation bias occurs when we repeat desired beliefs. The fact is that most people with access to money learn to live below their means. They practice financial literacy.
Restricted access to wealth, or any resource, does not accelerate social change. In fact, restricted access can imprison people. Look at global slavery, work conditions, oppression of women or poverty. Restricted access may cause violence. Look at global divorce, broken families, suicides, loneliness, drug abuse. Instead, what if wealth advisors actually shared their knowledge in a series of educational sessions? What if digital courses encouraged Next Gen leaders to ask questions about index funds, incentive trusts, donor assisted funds, IRAs, retirement, employee matches?
The #1 web browser is Google because people search for information. The #2 web browser is YouTube, because people search for answers. And they are both owned by Alphabet. The fact is that Next Gens are digitally trusting, better educated than many Elders, and often want to develop more financial literacy. Just ask them!
The notion that Next Gen family members are unable to manage money is based on ignorance. Throughout recorded history, in every corner of the world, most assets are quietly transferred to the Next Generation. (Also called the Rising Generation, like a Rising Tide or a tsunami). If Elders are not able to teach responsible wealth management, then other advisors can do so. One positive outcome from the Certified Financial Professional (CFP) designation is that wealth advisors are better self-managed to actually serve their client interests. For many decades “financial managers” were incentivized by higher commission fees or transactional incentives from their product managers.
Throughout my career I’ve taught people how to manage their precious time, money, treasures and talents. Nothing is more important. Perhaps anyone reading or sharing this article shares that same commitment.
Teaching financial literacy assumes that Elders and Next Gens are willing to learn. When I facilitate family meetings, I encourage the Next Gens to ask questions, because curiosity is the currency of learning. When they ask questions, the wealth advisors can share resources. I also encourage the Elders to bite their tongues- which is difficult. They often want to share their values and knowledge. But our kids learn to swim from other adults, not from their parents. Our kids learn to golf from professionals, not from their parents. In the same way, when Next Gen leaders ask questions and learn, the Elders smile with delight. They are practicing financial literacy and seeing that “light in their eyes” when their children and grandchildren actually learn.
We want to believe that advisors can recommend effective solutions because we want to trust “experts.” We go to physicians when we require healthcare, and they diagnose and treat us. We go to lawyers when we require asset transaction or protection. For many years, when I asked Google “Can you provide some business consulting?” it replied “Not at this time.” Now over 40% of my clients use ChatGBT for business consulting. Immediately. I have copied responses from one platform, like Claude, to ask other platforms, like Inflection, to provide more details. And recent studies confirm that some AI platforms demonstrate more empathy than “professionals.”
Let’s assume that advisors using AI will be more effective than those not using AI. And they will become even more effective next month. And every month thereafter. The best advisors are already using AI to provide more recommendations than ever for their clients. In seconds. Converging technologies, such as healthcare and AI consulting, will increase in power and provide even more value. Accurately. Imagine an empathic robot that suggests how Elders can bite their tongues. Imagine a hologram of the founders that can explain the values and challenges faced 50 years ago. Imagine a family meeting with 5 generations of healthy, opinionated owners instead of 3 generations.
Now imagine that one “family business consultant” can serve your legacy needs. How silly.
The example of the $100,000 annual retainer from that winking “family business consultant” who says, “you never know when you may need me” could be a waste of money.
My experience is that the presumption that family business leaders are inherently unstable, dysfunctional, heading toward chaos is downright silly. It may be lucrative for those using retainers. But it ignores the reality that family business leaders can flourish.
Yes, I’ll address HOW to flourish in a series of future posts. Please share this post with anyone who might appreciate it.
And add your thoughts or comments on this post about the Family Business Chaos myth? This could become a discussion.
Managers, by definition, must maximize the productivity of others. When we ask audiences, “How many of you are managers?” over 70% of the audience typically raise their hands. Many do not have the word “manager” in their title.
As managers, you know that it is your job to maximize productivity and outcomes from your employees. You need evidence-based best practices in leadership development. Today. And you need to demonstrate the ROI of that leadership workshop within 90 – 180 days. There is a myth that leadership development programs should only be scheduled in the spring and fall, to avoid conflicts with vacations. The reality is that leadership development workshops include both direct and virtual content that reinforces your outcomes. Our programs last 3-12 months. You should invest in a leadership development provider (like Action Learning Associates) because it is cost-effective and efficient. Your core business is something else. Our core business is to accelerate leader development.
Here are three reasons why YOU SHOULD invest in a leadership development workshop today.
Investment in a leadership workshop should directly increase your team’s engagement
Leaders need to practice leadership, just as attorneys practice law and physicians practice medicine. Many studies have shown that when employees are engaged in leadership workshops they are then more likely to be engaged in the workforce. An employee who is more engaged is a) more effective at required tasks, b) more efficient on key performance indicators or objectives and key results (OKRs), and c) more likely to stay employed at your organization. Retention of desired employees is a requirement in today’s competitive Talent Economy. Be smart. You never want to retain average employees- but you DO WANT to retain 100% of your desired employees. And leadership development workshops are the most cost-effective way for you to increase retention of your desired employees. We recommend that 70% of your promotions are internal, to encourage career ladders and talent succession. We strongly recommend that you invest in 100% of your top performers with leadership development programs AT LEAST twice/ year.
2. Investment in leadership workshops can help you develop your workplace culture
Culture can be developed, and must be developed, in response to changing market demands. Ask anyone involved in leadership development coaching, and they will tell you that culture cannot be left to chance. That would be reckless. The academics describe culture as “how organizations function.” As an example, we recently provided a leadership development workshop around ONE objective, “to create a culture of fiscal accountability using Objectives and Key Results (OKRs).” Let me explain…
Culture is best described using three overlapping circles. Label each circle as: 1) underlying assumptions, 2) espoused behavior, and 3) artifacts.
1) underlying assumptions are the shared beliefs of your organization, including history of acquisitions, traits of key leaders who get promoted faster, competencies of leaders with higher reputations, or that unspoken assumption you have about a market or colleague.
2) espoused behaviors describe what we say we do, including common phrases such as “I’ll solve this” or “that’s not my problem.” Notice the difference between what we say we do, and what we actually do.
3) artifacts are tangible symbols of the culture, such as a new National office in Nashville, TN for centralized services and consistent management of others. The cultural values posted in the lobby are artifacts of how you work.
3. Investment in a leadership workshop should improve employee morale
Many studies have shown that large organizations are investing less time, money, energy and training in their employees than they did 10 years ago. Professional development discretionary budgets have plummeted from over $10,000 per person in 2008 to $4,000 per person in 2018. Today, we invest more into maintaining cars and machines than we do in our most critical variable- people. That trend is reckless. If you are investing less in your people than you did 10 years ago then you are LITERALLY in a race to the bottom of your market. Look at the fact that only 35% of today’s F500 companies have been there for more than 50 years. If you want to increase employee morale, then you need to invest in your top employees. Nothing is a more critical investment. Today. Employee morale is NOT a lagging indicator. If you want to develop agile problem solvers, then you need to invest in leadership development workshops. You can make employee morale into a leading indicator. Today.
You should not invest in a leadership workshop IF you do not care about 1) employee engagement, 2) workplace culture, or 3) employee morale. We do NOT want to talk to you. We wish you Godspeed.
We provide outcome-based leadership development workshops that guarantee your results. We deliver programs throughout the United States and Canada. We provide expert leadership coaching and executive coaching services, based in Nashville, TN or globally. We’d like to visit you ASAP.
If you are based in the Nashville, TN area then we are neighbors. See details for leadership training for your employees here. We’d like to visit you ASAP.
Do you think that you a born leader? That is a myth.
The reality is that leadership skills can be taught and developed. By definition, leaders influence the behavior of others by describing a better vision of the future. The primary skill of effective leaders is public optimism. Leaders tell great stories and share optimism.
Those leadership skills can be taught in a workshop or program. The most effective leadership workshops include training and coaching, then more training and coaching, to reinforce desired behaviors over time. Repetition works.
Leaders must adapt to change. At a recent leadership workshop one executive stated, “We need to master this content in the next 3 days because we are each the CEOs of our business. We need to create our future business.” That urgency is common.
Many of the tactics that leaders were taught 10-20 years ago are obsolete today. Management by Objectives (MBOs) and Forced Rankings are now considered manipulative, ineffective, and counterproductive. That kind of “leadership” will limit your career.
We know that rigid managers and leaders prevent innovation and problem solving. We also know that agility can be taught and developed. We can teach agile leaders and managers to promote effective outcomes, efficiency, and employee engagement.
Today, many employees demand fulfillment and purpose. They want to feel inspired and know their place in society and their contribution to the world.
We know that leaders need to practice leadership, just as physicians practice medicine and attorneys practice law. All managers and leaders struggle.
A great leadership workshop should provide:
Leadership exercises and experiential activities that encourage open communication and sharing of ideas
Profound breakthroughs in understanding how to influence others.
Lectures, digital workbooks, videos, powerpoint slides, and activities designed to model engagement
Pre-assessments and Post-assessments to discover your strengths and track the ROI of your investment
Group problem-solving tasks that encourage conflict resolution through a better understanding of human behavior and group dynamics
Customized apps with content to download and distribute your consistent messages throughout your organization
A recent client stated, “This was by far the most useful leadership development program I have experienced in over 20 years of forced participation in some kind of training. The content was easy to understand. All of the sessions were customized for our organization. All of the consultants were experts. We were fully engaged in each session. We did our work. And now I have the skills I need to lead my team in a new and useful methodology.”
All of our leadership workshops use our trademarked positive psychology AD-FIT™ process. We typically include our leadership development coaching to assess your strengths and increase your probability of achieving your outcome-based results.
The best leadership workshops should ask you to take an honest assessment of your professional leadership style and define measurable outcomes. We typically use both quantitative and qualitative assessments. We offer both virtual and direct workshops with several exciting results-oriented topics to choose from. See the list of leadership workshop topics here.
We provide services throughout the U.S and Canada. We recently delivered programs in Chicago, IL, Charlotte, NC, Louisville, KY and Washington, DC. If you are near the Nashville, TN area, an executive coach in Nashville can help you.
Recently I was asked to speak at the Human Resource conference for the State of Tennessee. They wanted four sessions on “How to increase employee engagement.”
Studies continue to show that employee engagement in the workplace remains low- around the 30% range. Low levels of employee engagement have a negative impact on achieving organizational goals, and create a workplace that does not encourage high performance. During this session, we will answer the three key questions of employee engagement: 1) What do we know from evidence-based science? 2) How can I apply that science to increase my personal level of engagement? 3) How can I improve the engagement levels of others? This course introduces a new model based on positive psychology practices, called the AD-FIT%TM model, that you can apply immediately.
This course provides leaders at all levels with an introduction into the science and practice of employee engagement. Any manager or leader with a growth mindset can apply this course content to lead individual, group or organizational change in your business. This content has been distributed to thousands of leaders in governments, private and nonprofit organizations, as well as individuals.
The content of this course is gleaned from thousands of our leadership consulting clients since 1997, and the presenter’s dissertation research on positive psychology.
The goal of this course is to introduce leaders like you to world-class techniques so that you gain competitive advantage.
Learning objectives:
Recognize key variables that influence employee engagement
Discover how to measure employee engagement
Identify how to increase individual employee engagement
Identify how to develop organizational employee engagement
Please contact us for the handout before viewing the video section of this course.
I get this question all the time… so here are some details on speaking topics for new managers or emerging leaders.
Assumption #1: Leaders practice leadership, just as physicians practice medicine and attorneys practice law. Speaking is one way to reinforce evidence-based practices that should work for you. If you practice them.
Assumption #2: Positive relationships matter. The quantity and quality of our relationships is the greatest predictor of career development, human longevity, flourishing and well-being. Speaking is one way to practice developing positive relationships
So what are some great speaking topics? Here are some of my recent examples.
How to apply positive psychology in your talent development practice. A 50-minute presentation on the science and practice of positive psychology in any organization.
The Association for Talent Development (ATD) International Conference and Exhibition, Atlanta, GA, World Congress. One of only 2 presentations on positive psychology, amid 400+ presentations, and 12,000+ speakers. Book signing.
Association for Talent Development (ATD) chapter meeting presentations in Chattanooga, TN (June, 2017), Nashville, TN (August, 2016), Birmingham, AL (November, 2016)
International Coaching Federation (ICF) chapter meeting in Nashville, TN (September, 2016)
How to Increase Employee Engagement: For You or Others. A 50-minute interactive workshop designed to help leaders apply the science of employee engagement, and the AD-FIT consulting model, to their work.
State of TN, Human Resources Conference, Nashville, TN, 4 sessions July 18-19, 2017.
Trends in evidence-based talent management. A 50-minute presentation on the costs of human capital and analytics, technology and consulting.
Project Management Institute (PMI) Nashville chapter meeting (April, 2015)
International Society for Performance Improvement (ISPI) Nashville regional chapter meeting (February, 2015)
Action Learning Summit. A day of thought leadership designed for select leaders in Franklin, TN (May, 2016)
Talent Summit. A day of thought leadership hosted in Nashville, TN for select leaders in talent management, analytics and consulting (March, 2015).
How to Address Healthcare Leader Burnout. A 50-minute webinar or presentation. The need to diagnose burnout and treat healthcare leaders with resilience is critical. This presentation provides practitioners with evidence-based tactics to apply at the individual or organizational levels.
Webinar on July, 2015, partnering with eVisit and CEUs provided by the Professional Association of Health Care Office Management (PAHCOM)
Doug Gray speaker bio:
Doug Gray is the co-founder and CEO of Action Learning Associates. He has demonstrated expertise in applying positive psychology practices for thousands of individual and organizational leaders. Doug is a PhD candidate in Organizational Leadership at the Chicago School of Professional Psychology. His research topic is the effect of positive psychology on business leaders and executive coaches. Since 1997, Doug Gray, PCC, has been an author, researcher, teacher, and organizational consultant. His top five signature strengths include creativity, honesty, gratitude, hope and love of learning. He manages executive coaches for the largest global provider of executive coaches. He also volunteers as the ATD Nashville chapter president.
Yesterday I was asked to “step in” as a speaker for the Tennessee Safety Congress on Monday, July 21, 2014 in Nashville, TN, at the Opryland Conference Center. Today is Friday. I said, “Sure. Glad to help.”
The title is “Trends in Safety Leadership” and the main points include data and examples on 1) Frontline Decision Making, 2) Privacy and Control, and 3) technology.
The powerpoint content is located here: TN Safety Congress
Share this slide deck with your colleagues and friends, then contact us.
I have also added content from recently published articles in Professional Safety, the Journal of The American Society of Safety Engineers here for your convenience.
Initial consultations are free. Please give me a call at 704.995.6647 to discuss trends at your business.
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