Family Leadership Strategies

76 Acknowledging and correcting mistakes As with anything else in life, there will be failures in leadership succession in either the developmental or formal leadership role stage. This may be due to any number of factors, but an effective family leadership process anticipates this, and acts accordingly. In this regard, families are advised to include the following key elements: 1. Formal role and performance guidelines 2. Periodic candid feedback, including 360° surveys 3. Remediation plans 4. Making swift changes in roles and responsibilities when necessary An essential consideration for families is whether to engage a family counselor corporate board in the transition process. For many, adding pragmatic and experienced voices to the process brings greater objectivity and transparency. The key is designating a small number of external directors and family members who can rise above partisan issues and hidden agendas, and bring rigor and discipline to the selection process, rather like what occurs in a public company. 1 See “Sustaining Wealth Across Generations”, Private Asset Management, Stephen Campbell, January 2015 for a discussion of the characteristics of successful multi-generation families. 2 See “Emotional Intelligence”, Harvard Business Review, 2015 and Emotional Capitalists, Martyn Newman PhD, RocheMartin 2014. 3 Keep in mind that there are two levels to an effective transition process that may require outside consultants: 1) the structural or process elements can be aided by family business consulting firms; 2) the interpersonal elements however require the involvement of a skilled group/family facilitator or consultant, often this is a family/social psychologist or social worker skilled in family and group dynamics, ideally in a business context. 4 Conducted at the Citi Private Bank Empowering Leaders Program, University of Cambridge 2017.