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Annual Guide 4

Family and Owner Managed Enterprises



Love Family Enterprise



Foreword: Lesley Wild Bettys and Taylors Group


Foreword: Bruce Oldfield, OBE Bruce Oldfield Ltd Barnardo’s




Identity Introduction


04 FIB Global System 05 This guid e is de dicated

Beyond Infographics

to D arre n, C hris ,

Les and Pet er

01 All rights reserved. © Families in Business Limited

ople are People able are able


Understand how to inject energy into the business to enable growth and success.


Build a better quality of relationship with others so you can accelerate creativity and confidence.


Discover how influence impacts decisions and the ability to balance life as well as relationships and business.


Raise your awareness of how internal alignment connects you to the external world to build value.


Create purpose for all you do, are and have. Create strength by focusing on the reason “why”.

tribu ir con r the k fo r a d M e an Bruc sley, e L to anks Wi th th

t ions Annual Guide No. 4

Foreword: Lesley Wild Family businesses have many advantages over non-family businesses.

Lesley Wild Chair Of The Board, Bettys and Taylors Group

By their very nature, they tend to be in it for the long term. Their Shareholders are

Lesley joined the family business in 1979 and soon

usually staunch guardians of strongly held values, and are happy to re-invest in the

became deeply involved in maintaining and develop-

future of the business rather than seeking short-term gain.

ing Bettys high standards of products and service. This culminated in her being responsible for the

Most successful family businesses have a clear purpose, a strong culture and a well-ar-

running of the Bettys business. Lesley became Chair

ticulated vision of their future. To achieve this there must be a healthy, positive

of the Board in 2009. She has been involved with the

relationship between the board, executive and owners, underpinned by regular

University of York since 2000, where she was a Pro


Chancellor from 2007 until 2015. The business started in 1919 when Frederick Belmont, a talented and

Ensuring that the shareholders are united in their view of the future direction of the

ambitious Swiss confectioner, arrived in Yorkshire, married a local girl and

business is fundamental, and can only be achieved by working hard at family relation-

opened his first Bettys Café Tea Rooms in Harrogate. Nearly 100 years later

ships to cultivate a powerful sense of stewardship, which then enables the executive

Bettys & Taylors is a vibrant and thriving family business with six Bettys Café

to move forward at pace. This is not always easy, requiring single-minded commitment

Tea Rooms, a Craft Bakery, a Cookery School, online shop and one of the

to debate, sometimes on the most challenging of issues.

country’s most respected tea and coffee merchants, Taylors of Harrogate. Taylors blends Yorkshire Tea, the third best selling tea in the UK, as well as

But when this is achieved, family businesses are at their best – becoming agile, flexible

Taylors market leading roast and ground coffees, and a range of speciality

and innovative, creating pride and prosperity for all of their stakeholders.


Foreword: Bruce Oldfield, OBE I feel that having a clear sense of identity and purpose is a fundamental component for success and happiness. I think I’ve always had a real confidence and faith in myself, which was undoubtedly instilled in me by my foster mum Violet. She had to struggle to make the most of the strained circumstances she found herself in during the post-war period in the North East.

Bruce Oldfield OBE Barnardo’s Honorary Vice-President Bruce was fostered with Violet Masters, a dressmaker, from the age of two to 13 years. In 1971, the charity helped fund Bruce to attend a fashion and textiles

As a young man, being ambitious was often considered to be “bad form”. Yet when the people making key decisions about your future have very low expectations of you, it is crucial that you stand your ground and proclaim your worth.

degree course and in 1975 provided a £500 loan to help him set up his own company.

One of Britain’s most successful fashion designers, Bruce is best known for

I continue to work hard. I’m self-reliant and happy. I promote Barnardo’s today because I can and there are so many other children and young people out there today desperately in need of support and a sense of purpose.

his couture occasion wear and his clients have included: Barbra Streisand, Rihanna, Helen Mirren and Diana, Princess of Wales. He raises thousands of pounds each year in support of Barnardo’s. Photo credit: Cambridge Jones

“Family” doesn’t have to mean the people you share DNA and blood with but more so those that care and support you, that allow you to be the best version of yourself and give you a belief in what’s possible.

02 All rights reserved. © Families in Business Limited Annual Guide No. 4

Introduction To unlock your business, and the potential it holds, now and into the future you have to go beyond it.

This guide also provides an introduction to the Families in Business Global System, a detailed framework created to help family and owner managed enterprises - and any other organisa-

A business is simply the vehicle to deliver wealth, satisfaction,

tions - to find alignment that enables decisions, progress and

legacy and freedom and yet we so easily get caught up in the

growth. In a fast changing world, creating and maintaining

day-to-day challenges. When you work with family you have the

alignment is vital. The Global System is not just for your business

added emotions associated with responsibility, duty, being good

but for every aspect of life.

enough and making the right decisions as well as managing As you travel through the Guide, you’ll spot pages with

expectations and family dynamics.


within each section and 5 quick questions. If you answer yes to Following in-depth research, interviews and development, we

any of these then understanding The Global System in more

have uncovered the biggest challenges being faced by family

depth may be something you should consider to help gain

enterprises and the impact they have for individuals and the


family. The challenge of balancing life and all you’re trying to do We have used some of Steve Jobs famous quotes throughout the

with the time available is not easy.

Guide to illustrate how alignment can create success. We hope that by raising awareness, opening up discussions, and considering the way you approach this, will mean you can start

I hope you enjoy reading through! Dani Saveker, FIB CEO and Founder

making changes from today.

As part of our own endeavour to follow The Global System

The FIB Global System why

we feel it important to consider the world we interact with

who we are


and our own core values. As such Families in Business


supports charities for every event we hold. As part of the Beyond Business campaign we are proud to be supporting

d busine yon ss be

Barnardo’s. internal

how we interact


alignment how we relate



Barnardo’s work relentlessly to help the most vulnerable young people and children united under the common goal to realise their founder’s dream: that no child in need of help will be turned away

what we do business

03 All rights reserved. © Families in Business Limited Annual Guide No. 4

Beyond Business: The FIB Global System Alignment is critical in life, in nature and certainly for family enter-

So where does alignment show up? There are five elements that

prises. We come across business leaders who often talk about

not only have to align with each other but they also have to align

being stuck and being unsure about the best way to move

as individual elements. The longer the elements are left out of


alignment, the more serious the implication and potential for pain. The FIB Global System has been designed to help provide a frame-

Initially this is in reference to the business and they often go on to

work to support awareness and allow improvement for individuals,

mention family relationships and even their own life journey.

teams, families and the business.

Succession is a great example of how alignment, or lack of it, shows up. Whichever it may be, being stuck consists of an inabili-

Most of us like to focus on business and a desire to grow revenue,

ty to progress, make decisions and act. The root cause in all cases

increase value or simply keep going. Business is of course one of

is misalignment.

the important elements impacted by misalignment. However, no business would exist without people. To start with, a business has

Imagine you have a sore back. At first you notice the occasional

relationships within them (not always working in the business).

twinge, it’s unpleasant but manageable. It won’t stop you going

This is a critical element and alignment must be dealt with to

about your daily routine. Several weeks later you notice it more

ensure that everyone’s pulling in the same direction rather than

regularly and perhaps even take a painkiller. You soldier on.

causing distractions. In a family enterprise this can have its own set of unique challenges.

After a month you consider getting some medical attention but you worry about the lost time in attending an appointment. It’s

Every group, team, family and board is made up of individuals.

not too long before your niggle has turned into searing pain until

Each with their own history, fears, hopes and focus. This is the base

eventually you can’t get out of bed. You’ve seized up. You now

element where alignment must start. If this element is not

have to deal with extreme pain, immobility and significant

balanced every one of the other four will be impacted.

treatment. Above the business we also need people – customers, stakeholdApply this to the family enterprise. Misalignment is a naturally

ers, our communities and so on otherwise we don’t have a

occurring thing, life happens and it throws things out. Resilience

business. This is where investors sit. We also have external condi-

is the ability to realign. When tackled early on it’s far easier, and

tions which are often out of our control but will impact our

to keep maintaining alignment is the best thing to do. However, as

business and our people.

humans we tend to leave things until they escalate – issues with family members typically get buried because short term it seems

At the very top is beyond. This is the highest element of the five

like the easier option.

and the thing that supports all others; it’s “purpose”. To create alignment you have to start with individuals and their purpose.

This creates severe misalignment further into the future which is painful and potentially crippling.

04 All rights reserved. © Families in Business Limited Annual Guide No. 4


5% 5%

Biggest Biggest Purpose Purpose Challenges Challenges 1. Business 1.impacting Business family impacting relationships family relationships

worry how worry to how to have a clear haveand a clear and 2. Staying true 2. Staying to the true family to values the family values best pass best on pass oncommunicated communicated 3. Trust 3. Trust wealth towealth the to the succession succession plan plan 4. Family being 4. Family able being to getable away tofrom get away work from work next generation next generation 5. Being able 5. Being to do able whatto they do actually what they want actually to dowant to do

14% 14%

71% 71%


purpose beyond

wh y

b ondyon y be be

wh y

1. Legislation 1. Legislation

external external

Biggest Business Challenges


1. Sales and marketing


te ra c in w e

ho w


w e


ho w


wish to wish to are concerned feel technology feel technology are concerned their their about their is critical is critical to to increase increase about their exports exports business business customercustomer base base


te ra c


it’s nowit’s now are concerned are concernedbelieve believe 2. Customer 2. base Customer base easier to connect easier to connect about about red tape red tape 3. Supply issues 3. Supply issues the external with thewith external and increased and increased 4. Taxes 4. Taxes world via(e.g. via legislation legislation world (e.g. 5. Local and 5. national Local and infrastructure national infrastructure social media) social media)


External Challenges Biggest External Challenges 89%89% Biggest


88% 88%


have never have never are unable want growth aretounable to want growth considered considered agree the and an exit and an exit agree the leaving leaving purpose purpose


18% 18%


feel it is not feel it is not believe have no wish feel employment important important to toShareholders 3. Accessing and retaining skills and talent to sell contracts are Agreements are invest in the invest in the 4. Resources unnecessary not necessary business business 5. Growing revenue 2. Direction and/or strategy

All rights reserved. Copyright Families in Business Limited

who we are

Biggest Personal Challenges Biggest Personal Challenges



1. Time Time and energy

feelnot there's not struggle struggle to to feel there's enough time enough or time or achieve aachieve desireda desired to energy achieve to achieve balance in balance life in energy life 4. Enjoyment 4. Enjoyment of their roleof their role everything everything 5. Being good 5. Being enough/being good enough/being noticed or noticed accepted or accepted 2. Being willing/able 2. Being willing/able to let go/delegate to let go/delegate 3. Lack of understanding/support 3. Lack of understanding/support

identity identity

sinbeusine ss ss

79%79% 62%62% how

elate elate we r ow we r h



Biggest Biggest FamilyFamily Challenges Challenges

3. Clear direction 3. Clear direction

4. Conflict 4. and Conflict disagreements and disagreements 5. Agreeing5.the Agreeing purpose the purpose

19% 19% 23%23%

63% 63%

believebelieve there isthere is believe believe people people no empathy no empathy care care less about less about shownshown for others for others eacheach otherother than than ever ever before before

40% 66%

feel personal have have are unable aretounable tofeel personal get get communication communication agree onagree one on oneagendasagendas in the way in the way issues issues vision vision

e tw ha


e tw ha





47% 47%

1. Succession 1. Succession

2. Communication 2. Communication relationships relationships



fear not fear being not being rely excessively rely excessively feel a lack feel ofa lack of good enough good enough on something on somethingpurpose purpose and and to cope to cope focus focus

17% 30% believe

have no wish feel employmentShareholders to sell contracts areAgreements are unnecessary not necessary

58% 58%

70% 70%

have have funded funded growth growth organically organically

have have no no strategy strategy to to innovate innovate

Love Family Love Enterprise Family Enterprise


what do we do? Ask us about how we can support your succession challenges and business alignment

What we do, in other words ‘the family business’, is very often viewed as the only focus to us, our employees, owners, customers and professional advisers. The business can be seen as all consuming – the be all and end all. In reality the business is simply the vehicle – the entity that allows us to move forwards or, when not aligned, it’s the first area that feels stuck. This is where we start with the Global System and then you must then go below and above to unlock the potential of the business. Alignment of a business is dependent on alignment of relationships and individuals. We view the results as ‘the business’ and look at the revenue and bottom line as the critical things but they are simply the outcomes of all that’s happening internally and externally. A business on its own is just like a car that’s sitting in a car park.

07 All rights reserved. © Families in Business Limited

Until the driver starts the engine and passengers get in it is empty. Until it is on the road it’s going nowhere. The business, in terms of the Global System is the point at which change happens, decisions are made and succession occurs. It is the point of exchange from the past to future and from internal to external. Aligned businesses have energy and enable a strong link between internal and external elements. From a commercial view point, alignment of the business enables: 1. A feeling of energy in the business 2. Ambitious people 3. Creative teams 4. Acceleration in your market 5. Overall resilience Annual Guide No. 4

Business Developing a strong direction and plan for the family enterprise is easiest within the founding generation, however to maintain and go beyond this is perhaps not quite as simple.

Biggest Business Challenge sales and marketing

direction and strategy

skills and talent




For many people, the business is all about profit and revenue. Grow both and everyone’s happy. Focusing on these alone, however, can be limiting. One way in which this is incredibly limiting is when you come to value the business. If you can go beyond this - below into the culture and people, skills and capability you can begin to impact the multiple that valuations rely on. Equally if you go above the business by opening up channels, developing your brand and extending product lines you effectively increase the equity value.

Generational Values Of course many family enterprise owners are not necessarily looking to sell

Shareholders Agreement

their business. The rule should always be that each generation should add value of some description - investing, developing, growing and so on.

17% have a full and The Global System Business

protection SA

Any business that finds alignment will feel different to one that is distract-

25% don’t believe

ed and stuck. You can walk into a well performing, focused and aligned

they need one

business and see strong culture, energetic people and innovation. The business is probably the first and most obvious place the level of alignment, or misalignment, shows up.

Business Focus

A business that is best able to grow, develop and increase in value is one that doesn’t rely on a founder or leader, has real systems and a suitable level of governance. It’s also one that will hopefully outgrow the family’s

Generating Profit


Business Growth


Business Investment


capability and at that point you need to really consider your investment as a shareholder separately to that of the day-to-day management.

08 All rights reserved. © Families in Business Limited Annual Guide No. 4

Business Most members of a family enterprise have had little experience outside the business, and/or no real management training. Businesses with more ambition for growth often have family owners

Never Take Board Minutes

Don’t Believe Contracts Of Employment Are Necessary For Family



with greater external exposure such as working in other businesses. Entrepreneurs have generally experienced failure at some point before launching the family business and set out to be innovative and focused. However, future generations often don’t share the experience of overcoming adversity and simply arrive into the business.

Start Well

When Board Meetings Are Held

Passion, great ideas and enthusiasm alone are not enough for next generation members coming into the business. When coming into a family enterprise a number of other things are required within the

38% when needed

33% quarterly

17% never/rarely


armoury. One of these should be an understanding of what’s gone before and a strong vision for what can happen and be achieved in the future. Next generation arrivals into the business aren’t always viewed


positively – by family both in and out of the business and also other employees. It is therefore essential to be ready and prepared. Just because someone may have spent school holidays helping in the business doesn’t provide a sufficient level of preparation on its own.

Will Not Take On Debt


Will Not Consider Selling

Feel The Business Must Stay In The Family

Open To A Non-Family Managing Director



58% possibly 17% never for sale

09 All rights reserved. © Families in Business Limited Annual Guide No. 4


Business Apple’s example of business alignment

Business Alignment Quick 5

“Our goal is to make the best devices in the world, not


to be the biggest. Things don't have to change the

Would you like to see more energy and drive within the business and your

world to be important.”


- Steve Jobs


Do you think the business could benefit from more creativity?

Succession Plans 3.

Do you agree businesses can achieve more when work is enjoyable but focused?


Are you more likely to tackle succession if it was made simpler and less emotion-

38% don’t believe they need a plan 5% don’t know where to begin

al / confrontational? 5.

95% have no formal plan

Would you agree that businesses are more likely to grow if management teams are cohesive and aligned?

Succession and Transition Zones These can apply for any ‘change’ - what emotions would you fill in at each event?






current gen

next gen

















Warm down Warm up




Successful succession depends on alignment across all five elements

10 All rights reserved. © Families in Business Limited Annual Guide No. 4

Relationships Ask us about our specialist consultancy and intervention to support your relationship challenges and alignment

how do we relate?

Family enterprises tell us they want to grow and develop their business. In most cases, to achieve this, what they really need is to work on the relationships and individual alignment. These elements are the critical blocks that show up in the business outcomes. Barriers to succession, developing equity value and many more aspects all sit around alignment of people inside and outside the business and how influence shows up. In a family enterprise, the focus and development of relationships are often the extreme examples of this. Creating strong and positive dynamics with family and stakeholders in and around the business is imperative. It also goes beyond current relationships – it’s perfectly usual to work around the past generations and also future generations.

11 All rights reserved. © Families in Business Limited

From legacy to planning and from needing to improve communication to understanding expectations. When relationships in any business or situation are aligned, balance and energy is felt within the business. If they aren’t as healthy as you’d like, you will sense frustration, distraction and an inability to remain focused on the changing world outside. Aligned relationships allow a sense of collaboration and achieve a feeling of belonging while providing everyone with confidence. This enables: 1. Overall harmony 2. Individuals feeling safe 3. Collective commitment 4. Ability to be proactive 5. A sense of meaning Annual Guide No. 4

Relationships There are two ways in which we come together to form a connection – one is through ‘relationship’ and the other is ‘task’. The first, relationship connection, is mainly established through blood, family,

Biggest Family Challenge succession


clear direction




love and so on. Connections through “relationship” are more emotional, longer term, not always through choice and are usually more painful or rewarding. The stakes are higher. We measure this connection by how we feel. Relationship connections also tend to link to the past, especially with family, where social influence is particularly significant - adding complexity. The second way in which we form a connection is for a ‘task’. The easiest way to look at this is through employment or sports. You form a connection because there’s a task or job to be done. This means that a little more distance is built into the initial connection with, hopefully, a clear focus. We

Have Strained Relationships With Family At Work

measure this by results and achievements. The very best connections are formed by having, and continually developing,


a combination of both types of connection; if you begin with relationship, you need to add and develop the task. If you begin with task then over time you build the relationship. In a family enterprise, the development of relationship-based and task-based connections is even more important. Joining the business purely because of a ‘relationship’ without a clear task is a dangerous thing. Equally, neglecting relationship connections and only focusing on tasks is also something that

Have Current Communication Issues


needs to be avoided. You need to continually build both areas.

Family First Understanding the role the family does, and will have, in the business is important along with the way it will interact with the other roles individuals may have. We are used to building a business strategy but not a family strategy and yet this can be and enormously valuable in parallel.

12 All rights reserved. © Families in Business Limited

Gender With The Most Authority


74% Annual Guide No. 4

Relationships Have Issues Around Fairness

Words Go Unspoken One of the root causes of disconnect within relationships is not because of dislike but often because of love. It’s very difficult to address issues with someone you care about as the


stakes are higher. As a result, things get left unsaid causing a misalignment which, over time, becomes toxic and then tensions appear. Nipping things in the bud is key although not simple. Building regular health checks by a neutral party can be extremely useful whether that’s a non-executive director or specialist consultant. This is an area that FIB can, and does, support.

Have Significant Conflict


New World View The Millennial generation is the biggest generation (born 1980 - 2000). We have found an increase in the number of next generation members coming into the business while still under their parents roofs - through choice or necessity. The average age they are marrying is 30 where their parents (Baby Boomers) were nearer 23. The increase of blended families (second marriages / step siblings for example) continues adding complexities and differing dynamics within family enterprises.

Believe It’s Easier To Connect Than Ever Before


Free From Judgement With everyone holding their own stories, history and influences, it’s important to understand we don’t always know what is behind the behaviours, decisions and choices of others. This is true of even the closest of family members. What this also means is that without this knowledge and understanding, it’s very hard to judge people for these things. Besides, judgement is really only an external expression of how you judge yourself. You can certainly dislike behaviours but not judge the actual person. Removing judgement creates freedom. Unfortunately we live in a society that is full of judgement - from the media to social networks. It requires a conscious effort to stop and to know when you do place judgement on others it is a reflection of yourself and your own beliefs (as covered in identity)

13 All rights reserved. © Families in Business Limited

Feel People Care Less Than Ever About Each Other

63% Annual Guide No. 4


Relationships Apple’s example of relationship alignment

Relationship Alignment Quick 5 “Great things in business are never done by one person.


They're done by a team of people. We hire people who

needs/wants for various family mem-

want to make the best things in the world.”


- Steve Jobs


4. Friendship

2. Professional

5. Interests (e.g. sports)

Do you feel it easier to avoid difficult discussions and conflict?

The 5 Types of Connections (groups, teams, etc.) 1. Family

Do you sense there could be different


Do you wish people around you could better understand your challenges?

3. Romantic 4.

How Are Your Connections

Would you agree that teams with focus are more successful and confident?

How do you score with your relationships / family / team and do you all agree?



Would you / your business benefit from stronger relationships?

1. Care Relationship Needs

2. Communication

What do each of your relationships provide you with?

3. Commitment 4. Collaboration 5. Clear expectations To develop TASK







1. Competence


Champions you

2. Co-ordination



3. Creativity



4. Clarity 5. Control

14 All rights reserved. © Families in Business Limited Annual Guide No. 4


who am I? Ask us about our specialist peer groups to support your individual challenges and alignment

It is a simple question but “who am I?” is one of the most important things to be able to answer. However, it is very often something that gets overlooked. A sense of identity is a fundamental component for all people to have. Increasingly we have found that those who never really get to address this reach significant points in their lives and stall, not always with their business but certainly in life. These are the people who then experience a sense of being lost, confused and on the wrong path. It can show up in their job, relationships, family and overall. The worst case would be to spend the whole of your life like this when you don’t have to. We have found that getting clarity around your personal identity within a family enterprise is key; whether you are the founder or following generations, in the business or not,

15 All rights reserved. © Families in Business Limited

knowing who you are in your own right rather than being defined by others or the business is essential. Personal alignment enables contentment and an ability to better engage with others. It keeps you in balance to help manage all that life throws at you. It supports stability on which everything else can be built. When you connect this to personal purpose everything gains clarity, and strength is created. It enables: 1. Personal balance 2. Feeling of security 3. Stability in what you do 4. Open to the world around you 5. Sense of pride Annual Guide No. 4

Identity When you have a clear idea of who you are and what you’re about, you can focus on moving forwards.

Biggest Personal Challenge

In a family enterprise this a vital ingredient for each generation. When you’re


ability to let go

having support




confident that you know your own mind and what you want you can start out on, or accelerate, your journey. Personal alignment means focusing on yourself. This includes an ability to find and maintain balance - physically, emotionally, intellectually. You will be responsible, content, confident, energised and focused - and be better able to align to others and have stronger relationships.

Questioning We often ask people joining their family’s business “Who are you joining it

Have No Control Over Their Future

for?”. This simple question throws up interesting discussions. There are a number of further questions to also consider; what value will I bring through my involvement, do I understand my various roles (investor, manager, dad / son etc.- today am I Batman or Bruce Wayne?) and am I there for the business or is the business there for me?


Secret Influence We are all impacted by social influence, i.e. other people. Therefore 99% of our decisions are shaped by others. We can be attracted or repelled by their

Attention and Focus Given

influence but we won’t realise this is happening as it mainly sits in our unconsciousness. This in turn impacts decisions and choices.








Between the age of 0-6 years we create a system of beliefs based on early experience and influence to help us through life. Primary influencers are


parents, close family and teachers. Again, this stays in our unconscious mind.



It is suggested that 95% of decisions come from our unconsciousness. Raising awareness of this helps us to improve and reprogramme our early beliefs to be of better use to us and understand others.

Family Personal Development Fun Health & Fitness Thinking Space

“The mind is everything. What you think you become”

16 All rights reserved. © Families in Business Limited Annual Guide No. 4

Identity Anchors To The Past There are 5 main belief anchors that we tend to use (shown on the next page)

Fear Not Being Good Enough

Fear Failure


- created by early experiences and influences. People tend to be particularly sensitive to certain ones. For example, if you’ve grown up in a household


where 9 out of 10 wasn’t deemed good enough in a spelling test, you may carry this into adulthood as a need for acceptance. If key carers were absent as you grew up (emotionally or physically) and you craved affection, you may experience a continued need for connection. Humans are very good at placing blame on ourselves for things outside of our control. We all know the feeling of someone being bad tempered towards us and wondering what we did wrong rather than realising the other person is having a bad day.

Have A Lack Of Struggle With Balancing Purpose And Direction Work And Life



These five anchors will repeatedly play out in the present and future if they stay in the unconscious mind. They can impact your professional life, adult relationships and friendships whether you are aware or not. People seeking love very often have troubled relationships because they are unconsciously saying “I’m not loveable” which is their early belief. You create the reality you experience. We spend a great deal of time listening to the inner voice - which,

Are Frustrated With The Current Situation


for most people, is quite negative e.g. “You idiot, what were you thinking?” and yet they are just beliefs and can be changed giving you a better life and helping you to improve alignment to others. Many entrepreneurs and business founders are driven by multiple anchors and whilst it enables ambition and professional success, people are left empty, unhappy, insecure and struggling to find contentment and strong relationships.

Rely On Food, Drink Etc. To Excess To Help Cope


Leaders and senior members of family enterprises often talk about their physical ailments, difficulty sleeping and excessive reliance on wine, smoking and food. This is misalignment. The feeling of not coping, burden and pressure are common. These challenges, when left, will eventually show up in relationships and the business. ‘Soft issues’ (emotions) are the toughest.

17 All rights reserved. © Families in Business Limited Annual Guide No. 4


Identity Apple’s example of personal alignment “Knowing I was adopted may have made me feel more independent, but I have never felt abandoned. I’ve

Personal Alignment Quick 5 1.

other than what you’re currently doing?

always felt special. My parents made me feel special.” 2.

“I was lucky - I found what I loved to do early in life.”

Would you agree that having clarity helps you to make better decisions?

Steve Jobs

Feel Pressure, Obligation And Duty Towards The Family Inside And Outside The Business As Well As To Past Generations

Do you often think about something



Do you feel you’re on a treadmill?


Are you conscious of being responsible for loved ones, family and/or employees?


Do you crave more balance in life?

The 5 Belief Anchors u where yo table for e th in Fill or each anch are with u yo k in th to be e ideal is belief. Th nce. You d in bala aligned an see how you is in for th ll fi n ca o. others to

-5 -4 -3 -2

-1 balanced 0

+1 +2 +3 +4 +5



irresponsible accepted


arrogance loved


unlovable connected


centre of attention




“Awareness is the greatest agent for change”

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External how do we interact? Ask us about our Approved Advisers and network to support your external challenges and alignment

How a business, and people, interact with the world around them is something that’s always been vital to understand. The changing environment, be it physical, cultural or otherwise is something that requires us to adapt, understand and embrace. On a simple level, you sell your products to customers – if they decide they no longer want the products you produce you have to make quick decisions. The external world is littered with challenges and opportunities. From changing trading conditions to society, from technology to political stability, for example. What is absolutely consistent is businesses that provide the best examples of longevity and stability are those that have a strong alignment to the external world. By remaining relevant and, where possible, ahead of the curve (or competition at least) they grow from strength to strength.

19 All rights reserved. Š Families in Business Limited

External matters also include valuation, stakeholders and partnerships. By having alignment from the internal elements of the Global System you will automatically find it resonates into being part of a thriving community and network. Customers and stakeholders will buy into your business if you, the family and employees genuinely do too. This is where the external expression of your brand (who you are) sits so that others can buy into you and your products. Aligning to the external world allows you to remain relevant and proactive. From a commercial view point, it enables: 1. An ability to thrive 2. Increased equity value 3. Clarity internally and externally 4. Collaboration 5. Channel and sales growth Annual Guide No. 4

External One of the biggest areas of external impact is society itself. Within the UK, a generation was previously 20 years, now the average age for first time mothers is 30.2 years compared with 30 in 2013.

Biggest External Challenge increased legislation

customer base





The average age of successful business founders is 40 at the point of start up. With just these statistics you can see that generation gaps are increasing and the need for succession is clear which has been highlighted within Relationships and Business. This is happening with your clients, suppliers and wider networks too.

The Amazon Era

View Of The Next 12 Months

Add to this the understanding that the current generation - Millennials - are reluctant to buy items such as cars, music and luxury goods. Instead, they opt for access to products without the burdens of ownership. This can be referred to as a "sharing economy”.

48% 14%

Cautious - still feel lots of uncertainty Very concerned

Millennials’ affinity for technology is reshaping the world. With product information, reviews and price comparisons at their fingertips, Millennials are turning to brands that can offer maximum convenience at the lowest cost.

Importance Of Ensuring Dividends For Family Members

It’s estimated that almost 60% of consumers will now check and compare prices while in store. Just think how easy it is to buy books from Amazon. We expect the world to fit to us rather than be dictated to. Providing experience, convenience and individualisation are increasingly important.

Feel Being A Family Business Is A Competitive Advantage



Have No Strategy For Research, Development Or Innovation


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View Technology As Critical To Their Business

33% Annual Guide No. 4


External The current generation have come of age during a time of technologi-

External Alignment Quick 5

cal change, globalisation and economic disruption. This leads to a different set of behaviours and experiences than their parents had.


Would you like to grow your customer base?

Every generation has its own unique world view. None are incorrect. Changes within society influence everything. Businesses that can


embrace this through internal elements being aligned are better able

Would you agree that the world is changing and will impact your business

to innovate and respond quickly. When working at their best, family

positively or negatively?

enterprises have an advantage over non-family counterparts.


Would the business benefit from an

This is called staying relevant and ensuring you are future proofing the

improved ability to adapt to changes

business for the world as it will be.

quickly? 4.

The world is also shrinking and international trade (import and export)

Would you agree that staying relevant to society would benefit your business?

can not be ignored. The better your ability to embrace and create new opportunities, the better connected you will be. How you can extend channels, build partnerships, develop products and offer a valuable


Would you agree that every generation should add value to the business?

experience to clients, will determine your longer term future. The success and stability of your internal alignment will be reflected in


how well you can develop in the external world. If you’re distracted because of internal issues such as relationship dynamics, for example, you certainly won’t be best able to focus on what’s happening around you. Family enterprises often struggle with this over time.

Apple’s example of external alignment “Technology is nothing. What's important is that you have a faith in people, that they're basically good and smart, and if you give them tools,

Do Not Currently Export


Plan To Start Exporting Over The Next 5 Years


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they'll do wonderful things with them.” - Steve Jobs Annual Guide No. 4

hey throp MAZARS IN OVER 70r e s ort COUNTRIES...




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22 All rights reserved. Š Families in Business Limited



why? Ask us about we can support you building your purpose and the Global System into your life and business

3" This element of the Global System, along with the individual element, is the most critical. The ability to have clarity of why your business exists, what matters most to you and how this all relates to the family is the way to build alignment and structure for everything else. By connecting purpose to the individual element, you build the structure.

By always considering the “what is the purpose?” question within all you do will result in you saving time, money and frustration. When a family enterprise can answer the ‘purpose’ element as a collective and agree on one version that all can share in, it gives strength and leads to pride and success.

Having an understanding of what the benefit of your hard work will be, keeping focus around what you are aiming at and why, means that the challenges that you will face will be manageable. The stronger the spine of alignment, the more balanced and resilient you, your family and your business are.

Aligning to a purpose creates resilience, focus and a sense of pride. This enables:


23 All rights reserved. © Families in Business Limited

1. Commercial growth 2. Longevity 3. Strength 4. Focus 5. Purpose Annual Guide No. 4

Beyond Clarity around purpose, expectations, what everyone’s aiming at, and why, not only helps relationships and communication but also supports the concept of legacy.

Biggest Purpose Challenge impact family relationships

protecting family values





The element of Beyond comes into everything but within the family and owner managed enterprise it can show up most over time. The understanding of the value and importance of the business, what the family values are and “the why” can get lost and confused. By regaining, or protecting this from the outset, you allow a common focus to exist. Building out from Beyond can support people to understand, from their individual perspective, what matters most and what life they want through to the overall long term future of the business. To have this

Personal Exit Plan

across the family and relationship elements adds to the short and long

within 12months


terms benefits.

1 - 3 years


The Beyond element also highlights the importance of legacy and how

3 - 5 years


history shapes the future. That is from a family and generational perspective but also at a micro level with each person looking to ensure they live

6 - 10 years


a full life that they have enjoyed and can look back on with pride.

9% At every point of your story you should be able to reflect and refocus. If


you’re continually dissatisfied with your career, life or choices, stop and re access by using the “why?” question. Running on autopilot is not very

11 - 20 years


20+ years

Can’t imagine ever leaving

satisfying over time.

Have A Serious Issue Regarding Purpose


Personal Purpose Of The Business

Do Not Have Shared Purpose

1. growth with possible exit 2. career / income 3. meet the needs of the family


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Beyond Apple’s example of beyond alignment

Beyond Alignment Quick 5 “Being the richest man in the cemetery doesn't matter to

1. Would an agreed direction help you and

me. Going to bed at night saying we've done something

your business progress?

wonderful, that's what matters to me.” 2. Do you feel it would help if everyone

“You can't connect the dots looking forward; you can only

understood the purpose of the business?

connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You

3. Would you like to look back and feel

have to trust in something - your gut, destiny, life, karma,

proud of your / the family’s achieve-

whatever. This approach has never let me down, and it


has made all the difference in my life.”

4. Would you agree that knowing what you want to achieve makes it easier to move

- Steve Jobs

towards it? 5. Would you agree that short term

Have No Disaster Plan If Something Happens To Key Family Members And Admit To Being Vulnerable

challenges are made more bearable with


the knowledge and clarity of the longer term benefits?

“Our experience of yesterday creates the dreams of tomorrow and the opportunities of today”

Worry About No One To Pass The Business To

Unsure About How To Pass On Wealth To The Next Generation

Have Never Discussed The Purpose Of The Business


36% 9%



? 25

All rights reserved. © Families in Business Limited Annual Guide No. 4


The Global System ...and how alignment creates outcomes 1. The Elements

2. Element Outcomes When Aligned










3. Element Outcomes When Aligned Together


external business relationships identity

growth longevity belong focus


beyond business relationships identity

value clarity collaboration strength


beyond external relationships identity

resilience acceleration creativity ambition


beyond external business identity

meaning proactive commitment safe


beyond external business relationships

pride open stable secure


To understand how to use the Global System in detail please talk to the FIB team.

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Annual Guide 4

“The need for alignment was perhaps best explained by Robert Burns when in, "To a Mouse," he said something like: "The best-laid plans of mice and men often go awry." What this means is that human nature does not travel in a straight line and humans will nearly always veer off course. Because of this nature, alignment is not meant to be followed and adhered to literally from point A to point B, because that is not possible. The purpose of alignment is to give all parties something to course correct back toward when they invariably stray. The FIB Global System perfectly explains the five elements that need to be kept in check to move forwards not just in family enterprises but for us all in life.� - DR MARK GOULSTON Author of Just Listen and Talking to Crazy: How to Deal with the Irrational and Impossible People in Your Life, and contributor to Harvard Business Review, Fast Company, Business Insider, Huffington Post and Psychology Today

For information about how we support family enterprises, how to join a specialist peer group, become a member or understand the Global System in more detail, please drop us a line

Families in Business Limited +44 121 66 30 70 5


Love Family Enterprise

FIB Annual Guide 4 - Beyond Business  

Practical support for Family and Owner Managed Enterprises including an introduction to the FIB Global System. How to unlock and energise...

FIB Annual Guide 4 - Beyond Business  

Practical support for Family and Owner Managed Enterprises including an introduction to the FIB Global System. How to unlock and energise...