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I attended a presentation last week by Clint Haggard and Byron Gossett that discussed creating a 100 year plan for sustaining family wealth and unity. As most people know, creating wealth is one thing - sustaining it over many generations is a completely different challenge. While the discussion was centered around high net worth families, many of the points are quite valid for most of us.
Here is the top ten list, in reverse order - David Letterman style:
10. Have a shared vision with the next generation about management of assets (investment philosophy, charitable giving guidelines, disbursements, voting control, leadership).
9. Have a scheduled meeting with beneficiaries of family wealth on a regular basis. Seek to develop a culture that includes holding productive meetings.
8. Create lasting memories and traditions with the next generation that do not necessarily revolve around material things.
7. Encourage the next generation to "ride in the truck", allowing them to observe the older generation's approach to both business and relationships. Be very intentional in training the next generation in effective communication skills. [If "ride in the truck" is a confusing phrase, you're probably not from Texas or another area with a ranching or agricultural history. It simply means to spend time together - working, playing, observing. - JBE]
6. Support and encourage individualism in the next generation. Learn to accept each person and their uniqueness. Make it a priority to invest in the development of each family member so that they may reach their full potential.
5. Create and follow a written Living Master Plan (LMP) that considers future generations, not just the next generation.
4. Develop a standardized system to address such things as employing family members, compensation levels, levels of authority, and succession.
3. Develop a system for addressing and resolving conflict in the family and/or the family business.
2. Explore the possibility of using charitable foundations as a training ground or "laboratory" for teaching stewardship and philanthropy to the next generation(s).
And, finally...
1. Utilize the services of objective and creative advisors who are trained and experienced in assisting with the above activities.