Why should we strive to achieve the alignment of the different interests of family members
and internal and external collaborates of the family enterprise?
The alignment of different interests leads to consensus harmony inside the family as well as the enterprise.
The implementation of an effective governance structure, regulating rights and obligations, avoids misunderstandings and favors the alignment of interests.
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Should benefits only be conditional on family membership?
How should we decide on the criteria for eligible beneficiaries, also outside the family circle? Payouts from the family assets would usually be distributed to family members. Each family decides on its own pertinent criteria such as age, inclusive or exclusive family membership. The rights and obligations of eligible beneficiaries like collaboraternal consultants of the family enterprise need to be clearly defined in the governance structure.
What is the advantage of defined communication channels for the family and the family enterprise?
The clear definition and protection – IT-security – of communication channels makes for Good Governance.
Timely and pertinent information often decides on the success on business strategy and family harmony, as it defines not only the exchange of information but impacts decisively on intra- and extra-organizational relatonships, for instance with clients, competitors, the media and the public.
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Would diversity have a positive effect on my enterprise, even though we do not yet operate globally?
Even more then cultural diversity, diversity of competences and diversity of soft skills are recommended for the management of the enterprise and its board of directors. Diversity in the skills and attitudes of different family members can enrich the family life when handled with trust and respects.
In principle we agree with the concept of equality for our family and our enterprise.
How can we document this concept?
Gender equality inside the family can be declared in the Family Constitution. Gender equality in the enterprise is expressed through equality in the compensation and in the possibilities of promotion. In the interest of Good Governance the principle of equality should also extend to equality of background and ethnicity.
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Why do you advise a formal Family Constitution?
We consider the Family Constitution as a contract between the past and the future generations.
This contract defines the family’s heritage, its ethics and values and thereby the family`s vision and mission.
The contract should provide for enough flexibility to allow the input of coming generations.
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What does governance practically mean for my family and enterprise?
WORKSHOP DUAL can advise you to achieve Good Governance through a structured framework covering direction, strategy and control through risk management, succession planning, mediation, communication channels and questions of benefits and requirements for family members as well as management.
How can we transmit our family heritage to future generations?
Like the family legacy, a family`s heritage needs to be kept alive. Younger family members should be acquainted with their ancestors’ values and life histories. In an age of globalization and patchwork families the ties between family members also of different family branches can be renewed and family unity can be assured, for instance by an annual meeting delegated devoted to the family heritage.
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How can I ensure myself of the integrity of collaborators and external consultants?
Integrity is an ethical value which we appreciate in our private and professional life. In a framework of Good Governance clearly expressing the family`s values and expectations of others, collaborators and external consultants, integrity becomes a requirement as important as professional know-how.
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How can we resolve the juxtaposition between the interests of the family and the family enterprise
and the interests of the next generations?
Not every family member has the inclination or the talent to join the family business. But some family members without suitable education or drive may feel entitled. Good Governance helps avoid this conflict situation by announcing unequivocally the conditions of education in work experience required from family members in the enterprise.
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How can we ensure the transfer of knowledge to the next generation?
Knowledge gained by experience and based on professional competence can only be transferred to the younger generation
in a dual process of learning and learning by doing. Permitting younger family members to acquire practical knowledge,
for instance by internships, will prepare them more effectively than just theoretical knowledge.
WORKSHOP DUAL offers suitable workshops and seminars for the next generation.
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What is the significance of legacy for a family?
Besides the family heritage, encompassing the family history and values, the legacy of a family is the sum total of the ancestral accomplishments and directions for future generations. Every generation strives to optimize and successfully transfer to its successors their inheritance, so every generation is responsible for building on and continuing the spiritual legacy of the family.
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How can mediation help conflict resolution?
Sometimes conflicts between family members, especially when working together, can become very acerbic. This kind of conflict may tear families apart and impact very negatively on the family enterprise. Mediation by an objective and trusted expert who is not involved in the family or the family enterprise can bring the warring parties together and initiate conflict resolution. WORKSHOP DUAL can assist you by offering confidential mediation.
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How can we actualize our network and how can we transfer it to the next generation?
Introducing the next generation into the network brings the advantage of using all technical innovations and the platforms of the younger generations. The rejuvenated network will keep old connections intact and fortify the network with new additional contacts. Furthermore, the key people of the established network can be very helpful as mentors.
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How can the adoption of a governance structure lead to optimization of the family’s well-being
and our enterprise`s success?
Inside the governance framework the decision making processes as well as fixed control mechanisms allow for timely evaluation and correction, thus optimizing the entrepreneurial success. Optimization will also be experienced through better conflict resolution in the family`s private and entrepreneurial life.
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How is the preservation of private family assets still possible in times of economic recession?
The preservation, maximization and successful transfer of family assets is every patriarch’s primordial consideration. Thoughtful strategy and direction, judicious risk taking, diversity of investments, timely risk management and finally the assembly of diverse’ competences bound in a strong governance structure are the key to success.
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How can we motivate our children to collaborate in our family’s quest for successfully living our values?
Familiarizing the younger generation with the Family Constitution and keeping the family legacy alive are the first steps of cementing the family ties. WORKSHOP DUAL suggests intra-generationally conceived and executed philanthropic projects to teach the younger generation the practical value of lived family ethics. We also offer workshops and seminars to assist you and your family with your projects.
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Is there more to risk management then regular accounting?
Internal and external accounting is only one of the tools of risk management. Whereas accounting provides only hindsight,
a concise risk management plan starting with a risk profile of a given family or enterprise offering fixed parameters of evaluation and control, allowing for possible corrections, will provide not only efficient risk management, but will also optimize strategic decision making.
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How can we establish a long-term model of succession planning in our enterprise and why is it relevant inside the family circle?
Keeping in mind that only three percent of family enterprises achieve successfully, without loss of value, the transfer to the next generation, timely succession planning is understandably one of the big precepts of Good Governance for a family with multi-generational prospects. WORKSHOP DUAL offers you advice and assistance with your succession planning and with the preparation of the successors for their future responsibilities. For the succession planning in your enterprise and the selection and evaluation of candidates we design relevant questionnaires covering requirements from professional expertise to soft skills
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How can I communicate my target to my family and our enterprise?
Starting from your vision you define your target and plan your mission. To ensure the support of your family and your collaborators you need to share your vision and motivate them creating alignment of interests resulting in consensus on your vision, the mission, and the target.
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How can we achieve unity in the family circle and unity between the family and our enterprise?
Unity is based on mutual agreement. It can only be achieved through honest and trustful communication, respect for each other’s opinion and integrity. The unity of the family circle relies on a strong bond, overcoming misunderstanding or quarrels more easily than a confrontation with outsiders. Unity between a family and its enterprise is the strength and the advantage of a family enterprise.
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What impact could a shift in the priorities of values of the next generation have on our enterprise?
Respect for the family legacy and the family values shown by the next generation does not preclude the addition of new values. On the contrary, the next generation should not remain static in their efforts and believes and keep an open mind, still honoring the heritage of the family value. The impact of new values and ideas can positively affect the enterprise opening new horizons pursuing innovations in the technical or strategic sector.
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How can we prepare the next generation for their responsibility of wealth management?
The next generation should be educated about financial matters according to their age level. Even if they do not plan to join the family enterprise, they have to be well prepared for their future responsibility as inheritors of family assets. Therefore they should be admitted to discussions about the family`s investment strategies and learn about the exigences of budgeting and risk management. WORKSHOP DUAL offers workshops and seminars preparing young people for their future responsibilities.
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How can we best meet the challenge of the X-Factor, namely unexpected problematic situations,
like crashing markets or fraud?
Even seasoned entrepreneurs may be caught by surprise by some crisis in the financial markets or by sudden instability by a foreign market. Investment strategies which follow the principle of diversity can eventually alleviate losses. A human X-Factor is a crisis caused by fraud or embezzlement by a collaborator or counselor. This X-Factor can be tackled by following parameters of evaluation and risk management of a Good Governance structure.
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Does the Y-Factor describe a collective yes of agreement for our family and our enterprise?
Permanent collective agreement would be static and unproductive. The Y-Factor expresses the attitude of “yes we can”. Just as important as the transfer of assets to the next generation is the gift of trust, based on a sound education and preparation of the next generation. WORKSHOP DUAL conducts workshops and seminars enabling the next generation to successfully meet professional and private challenges.
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As a successful entrepreneur, I am still at my zenith, why should I already consider succession planning?
Even if you and your management team feel you have reached your zenith, you cannot rely on keeping the highest point of power without a safety net. Timely planning of succession, selection and exit strategies will grant you the time and opportunity to find the best candidates, inside and outside the family and will enable you to steer clear of the pitfalls of the transition time. WORKSHOP DUAL can assist you with your private as well as your professional succession planning by establishing a suitable profile of eligible candidates and your requirements. Together we can design your specific model of the succession planning process and assist you with the evaluation of the questionnaires and the selection.