Praise for The Family Wealth Sustainability Toolkit
"The Family Wealth Sustainability Toolkit is a valuable tool for families. In the manual, Herz Brown and Lotery provide insights and real–world examples around the distinct areas enterprising families may focus on to achieve sustainability. What is special about this work is that there is direct application; a family can not only read about suggested activities for sustainability but can complete the online assessment, which results in a road map to prioritize and engage in the practices most important to them. This a great guide for families engaged in the journey of sustaining family wealth for future generations."
—Mel Lagomasino, CEO, GenSpring Family Offices
"This book very much reflects the seasoned wisdom of its authors. Fredda Herz Brown and Fran Lotery are hands down among the most experienced practitioners in our field. Their framing of family enterprise continuity in terms of sustainability, and their deconstruction of the key ingredients that account for it, will undoubtedly advance both our collective understanding and our ability to assist families more effectively. The book is full of practical examples, case studies, and succinct advice that will be compelling and useful to many enterprising families."
—Ivan Lansberg, PHD, Senior Partner, Lansberg, Gersick and Associates; Academic Director, Family Enterprise Programs, Kellogg School of Management
"The way Fredda and Fran have distilled decades of wisdom and experience into a user–friendly manual and companion online tool is truly impressive. The four core dimensions of wealth sustainability are introduced in practical, actionable terms. Finally, families now have an interactive, modern way to communicate, map out, and assess their journey to wealth sustainability."
—Kathryn M. McCarthy, Director, Rockefeller Trust Company, NA, and independent advisor to families and family offices
"Fredda Herz Brown and Fran Lotery have been pioneers in the family governance space, and this book is evidence of their continued leadership. Together, the book and complimentary online tool raise important questions for multigenerational families to consider about legacy, values, and decision making; most importantly, how to maximize the inclusion of next–generation family members for the benefit of the family and the sustainability of their enterprises."
—Sharna Goldseker, Managing Director, 21/64
"In this new work, Fredda Herz Brown and Fran Lotery give financially successfully families the road map for sustaining and enhancing their success, well beyond just their wealth. At once, they define the issues and provide useful and practical solutions that will have immediate impact on a family, as well as provide long–term sustainability. By combining their extensive experience and insights with clear examples and tools, the reader receives an abundance of ideas. What a significant contribution to enterprising families."
—Ellen Miley Perry, founder, Wealthbridge Partners
Table of Contents
Foreword vii
Preface ix
Acknowledgments xi
CHAPTER 1 Achieving Sustainability: The Challenges, Opportunities, and Complexities of Enterprising Families 1
The Business of the Enterprising Family 3
Moving Toward Sustainability 19
CHAPTER 2 Family Legacy and Connection 21
It’s about Family, More Than Financial Assets 22
Combining the Mindset of Shared Risk and Shared
Opportunity with a Family Emotional System 22
Family Connection: More Complex over Time 26
Family Connection Independent of Sharing Assets 30
CHAPTER 3 Governance Structures and Processes: Helping Families Achieve Goals 35
Family Mission: The Cornerstone of Governance 39
The Shape of Governance: A Thoughtful, Inclusive Process 42
CHAPTER 4 Financial Accountability and Management 49
The Individual’s Role in Oversight 50
Financial Responsibility across Generations 52
Long–Term Management of Finances and Risk 56
CHAPTER 5 Human Capital and Leadership Development 61
How Does Human Capital Develop? 62
Relationship–Based Competencies Are Most Valued 63
Human Capital: People at Their Best 69
CHAPTER 6 Roadmap to Sustainability 75
Designing Your Unique Roadmap 77
About the Family Wealth Sustainability Index 80
Results: Setting the Base Point for Creating the Family Roadmap 82
The Roadmap to Sustainability: Planning the Future 93
APPENDIX 1 Genogram Key 95
APPENDIX 2 The Samson Brothers Family Genograms 97
Index 99
Authors
Fredda Herz Brown is acclaimed by clients and professional colleagues alike for her groundbreaking work with enterprising families and their trusted advisors. From her numerous contributions over a quarter century, she has helped to establish standards of professional practice and develop the body of knowledge that defines the work of the field to this day. Fredda′s distinguished career accomplishments have been honored by awards from the Family Office Exchange and the Family Firm Institute, where she is a Fellow and founding board member. She is the author of Reweaving the Family Tapestry, which encapsulated her model for understanding and working with families as they evolve through their life cycle. Among her numerous academic appointments over the years, she continues as a guest lecturer for the MBA students at Columbia University.
Fran Lotery has more than thirty years′ experience and knowledge in family economic and emotional systems gained from working with professional firms, family enterprises, owners of closely held companies, and large nonprofit institutions. Since 2006, as one of the principal founders of Relative Solutions, she has collaborated on research and tools that contribute to advances in developing human capital and leadership in family enterprises and understanding the dynamics associated with wealth and the multigenerational family. Fran has been an expert contributor on radio and television, a speaker at professional conferences, and an adjunct faculty member at leading colleges and universities in California.
Relative Solutions is one of the leading firms helping multigenerational family enterprises manage the complex decisions related to their shared assets. Their frameworks, tools, and methodologies are considered to have established the gold standard for the professional practice of trusted advisors, and the development of families and their enterprises. The firm′s Family Enterprise Leadership System (FELS) is the only leadership assessment framework of its kind, created exclusively for family enterprises. In 2011, they introduced with 21/64, two new tools to assist families to start conversations: the Family Quest Cards on "Exploring Wealth" and "Family Giving/Philanthropy."
