When working with clients that are business owners my first instinct is to strive towards aligning the many advisors who may be around the table.
The role taken by Continuum II Inc. is often as quarterback. We are the advisors responsible for keeping the eye on client goals and we do this with our Keys to Success™ document. We are also the ones, and often the only ones, who will have meetings with a focus on the softer and more emotional issues that may be at play.
When working with a number of advisors it is easy to end up with conflicting advice for clients, which can be confusing and frustrating for the business owner. This conflicting advice can sometimes come from the advisor’s, but it can also originate with the business owner themselves. (I call it the broken telephone – when someone tries to interpret what one advisor is saying and then tries to relay it to another advisor at a later date)
It may also stem from lack of awareness of the work that other advisors are doing. Things can get worse if advisors start angling for better positioning with the client and may criticize or minimize the work of others. (This is very difficult because how do you know if the criticism is warranted or not? There could be instances when one advisor is truly giving bad advice.)
When working with a number of advisors it is easy to end up with conflicting advice for clients, which can be confusing and frustrating for the business owner. This conflicting advice can sometimes come from the advisor’s, but it can also originate with the business owner themselves. (I call it the broken telephone – when someone tries to interpret what one advisor is saying and then tries to relay it to another advisor at a later date)
It may also stem from lack of awareness of the work that other advisors are doing. Things can get worse if advisors start angling for better positioning with the client and may criticize or minimize the work of others. (This is very difficult because how do you know if the criticism is warranted or not? There could be instances when one advisor is truly giving bad advice.)
Advisors must leave their ego and self-interest at the door to ensure everyone is truly working in the client’s best interest, but this is often easier said than done. Here are a few points which can help;
1. Clearly define roles and responsibilities of all advisors.
More than one advisor may focus on the same problem, with each being responsible for a different task. i.e. legal, accounting, insurance, investments. Each advisor should have a clear understanding of who is doing what, and be sure that no advisor gets left out of the picture. (this means you must know all the advisors and their roles and responsibilities)
2. Joint meetings with a well-defined agenda, clear objectives and expectations is KEY.
Clearly defining the goals and seeking input from each advisor all together pays huge dividends. This gives the opportunity for each advisor to hear what the others are planning. More importantly it gives the opportunity to give feedback on how what one advisor is doing and how it may be affecting the work of others (an example of this would be a lawyer suggesting a shareholders agreement shot gun clause which can clearly have accounting implications. OR an accountant suggesting the use of the capital dividend account for an insurance policy which the insurance advisor will need to set up with the correct ownership structure to have it work as the accountant intends). Sharing information contributes to successful teamwork and it is important for the advisors to agree on who will do what during the multi-party meeting.
3. Advisors should be able to give and receive constructive feedback.
This ensures that any hurt feelings are cleared and that disagreements can be put to rest to avoid negatively influencing future work together. There are likely going to be times when the advisors are not going to agree or may see alternative ways of solving a problem, this is normal and actually a healthy step towards ensuring the best outcome for the client. If there are never any tough questions and everyone is nodding their heads agreeing all the time, I would be concerned. In a fair and constructive way the advisors should be asking challenging questions of each other to ensure there isn’t a better way to achieve the clients’ goals.
4. Family meetings.
Once the advisors have found alignment, it's a good time to bring the family into the fold when it comes to a family run business. The family members, especially those not working in the business, don’t need all of the details but a big picture summary can often help set the stage for healthy relationships in the future. Conflicts between parents and children or siblings or spouses often arise when there is a lack of communication. (i.e. Dad didn’t want that, he wanted this!) All “dad” had to do was actually tell the adult children what he wanted and that future fight can be avoided. These meetings are often most effective when there is a third party moderator.
2. Joint meetings with a well-defined agenda, clear objectives and expectations is KEY.
Clearly defining the goals and seeking input from each advisor all together pays huge dividends. This gives the opportunity for each advisor to hear what the others are planning. More importantly it gives the opportunity to give feedback on how what one advisor is doing and how it may be affecting the work of others (an example of this would be a lawyer suggesting a shareholders agreement shot gun clause which can clearly have accounting implications. OR an accountant suggesting the use of the capital dividend account for an insurance policy which the insurance advisor will need to set up with the correct ownership structure to have it work as the accountant intends). Sharing information contributes to successful teamwork and it is important for the advisors to agree on who will do what during the multi-party meeting.
3. Advisors should be able to give and receive constructive feedback.
This ensures that any hurt feelings are cleared and that disagreements can be put to rest to avoid negatively influencing future work together. There are likely going to be times when the advisors are not going to agree or may see alternative ways of solving a problem, this is normal and actually a healthy step towards ensuring the best outcome for the client. If there are never any tough questions and everyone is nodding their heads agreeing all the time, I would be concerned. In a fair and constructive way the advisors should be asking challenging questions of each other to ensure there isn’t a better way to achieve the clients’ goals.
4. Family meetings.
Once the advisors have found alignment, it's a good time to bring the family into the fold when it comes to a family run business. The family members, especially those not working in the business, don’t need all of the details but a big picture summary can often help set the stage for healthy relationships in the future. Conflicts between parents and children or siblings or spouses often arise when there is a lack of communication. (i.e. Dad didn’t want that, he wanted this!) All “dad” had to do was actually tell the adult children what he wanted and that future fight can be avoided. These meetings are often most effective when there is a third party moderator.
Overall, there is a lot that goes into building and running a successful family business, but one thing I know for sure is that it is worth spending the time to get it right! (and that may not be the first time).
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