Can you resonate with any of these statements?

You’ve heard one of your peers or professional advisors discuss the value of strategy planning. But don’t enjoy formal processes and/or you don’t know where you should start.
A family and/or team member brings up bold, creative ideas during operational meetings, and you mention that we will investigate these when things slow down. Unfortunately, that day doesn’t come around and the ideas drift away.
Your business continues to do well, but you and/or your family/ team aren’t exactly sure what areas are working well and which areas require tweaks or transformations
You see value in bringing the family/ team together, but I cannot visualize how you will manage the different personalities! It is rare that the meetings you do have stay on track and end in any decisions, let alone ones that everyone can agree with.

Strategy planning in a family business environment is not for the faint of heart. It’s hard enough to find time for future planning, let alone manage the family dynamics and differing personalities and perspectives among your team. What’s more, each generation of your family will have a different tolerance for risk-taking. This is why only a few family businesses do this well, or even at all. For those who do invest in strategy planning, it is the execution of the strategy that likely falls apart at some point.

It doesn’t have to be this way! For the moment, let’s imagine …

You select a process that navigates the variety of perspectives and personalities
You use an ideation process that is partly completed individually, in comfortable safe environments for everyone
You tap into the genuine capabilities, skills, and passions that lie within your family/team. Imagine the creative ideas and solutions that arise – with the energy and focus to see them through
How much more engaged your team will be when you show them their ideas, views and perspectives are valued

Tip # 1: Be Aware of the System You Operate in

The first step is to become aware of the system that your family business operates in. The framework used to understand the family business systems is called The “Three Circle Model”. This model was created in 1978, if you can believe it, by Renato Tagiuri and John Davis at Harvard Business School (HBS). It involves 3 intersecting circles, representing “Ownership”, “Business” and “Family”. It was a game-changer as it allows each person impacted by a family business (owners, leaders, employees, family not working in the business, etc.) to find themselves somewhere in this family business system. Just as important, it allows the family to have intentional conversations within specific circles, independent of the impact of the other intersecting circles.

Many advisors today use this framework for succession planning conversations only. I also use it for ALL strategy conversations, no matter how close the business is to needing a succession plan.

In my work with family businesses, we present this framework on one page, so you can easily see the strategies and concepts selected in each of the three circles. Connect with me here and I will send you the 1-page template which indicates the 7 unique area(s) each member of your family business might be in. It also outlines common strategies in “Ownership”, “Business” and “Family” areas.

Tip # 2: Adjust your Mindset

It’s easy to think of what can go wrong when you bring family members together for future business planning. But what if you switch your mindset? What if you focus on what’s already working well (in the “business”, “family” and “Ownership”) and then imagine the possibilities if you brought your family together in a creative, open and safe environment? Leading with these positive emotions is like fuel for the creative thinking process to begin and then to thrive.

Tip # 3: Keep Strategy and Operational meetings separate

Another useful tactic is to have separate “operations” meetings and “strategy”meetings with your owners/ leaders. The way our brains work, once we dive into an operational issue that needs attention, we run out of the energy to discuss and execute on strategic items, especially if the issue is complex and may involve deep emotions and differing perspectives from your team.

Tip # 4: Trust the Process

You’ve heard many projects fail during the last 20% of effort. There’s simply too much information and problems to contend with, so you and your team run out of steam. Strategy planning is no different. If you commit to a strategy planning process, make sure it’s designed with you and your team in mind. Make sure it factors in how your family/team communicates and addresses the time constraints you face. Simply, agree to the process, then follow it!

Tip # 5: Just Start!

If you haven’t participated in a strategy planning process before, or not in a long time, be kind to yourself and your team! Trust that things will evolve and the quality of the planning and the outcomes and impacts to your business will improve over time. Expect it to be a bit messy to start. Build in rewards for yourself and your team for starting today!

It’s about time we reorient how we think about strategy planning, especially in a family business environment.

Yes, it will be an investment of time and resources. But, by understanding some of the unique family business strategy planning characteristics we’ve discussed, you are intentionally investing in your unique “Familiness Advantages”. These advantages cannot be duplicated by anyone and will significantly increase the odds of long-term business success.