Written by Roy Williams and Vic Preisser © 2005

Another excellent resource from the Institute for Preparing Heirs.  Much of family business literature speaks to the issue of talking to children early and frequently about wealth, what it means and how to prepare for its transfer; however, Roy and Vic actually take this matter a step further. They believe that philanthropy is a great way to prepare heirs regarding wealth and its implications. As with many of the Institute’s publication, this one starts with the research regarding philanthropy and its implications for Family Business members. What is unique about this book is the roadmap of developmental stages, ways to speak with and reach the heirs as well as specific ways to check for their understanding.

Each stage is described and given an age range. After you understand the stage and its implications there are specific exercises and opportunities outlined that can be used to teach children. In each stage the categories that are being checked for are values, mission, and accountability. Vic and Roy do a great job of integrating small case studies that relate to each section exploring both well prepared and less than prepared families. This is a great resource for any family business owner who wants to start creating wealth literate heirs.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Dennis T Jaffe © 2010

Mr. Jaffe’s book is an encyclopedic reference that provides a wealth of information for families who own businesses — from effective governance and decision making through communication and constructive conflict, covering such topics as succession, leadership, structural tools i.e. family constitution, family code of conduct, effective family meetings.  He takes a novel approach and suggests that stewardship is not just a component of family and wealth transition but rather an overarching umbrella and the key to multi-generational family success.  He also asserts there are six types of wealth that are inherited and stewarded: spiritual, financial, human, family, structural, and societal.  He reflects that general stakeholder involvement is an important foundation for families going through a wealth transition.  And finally he suggests that the roles of elders are critical to envisioning a family legacy that will be stewarded by their heirs.

Mr. Jaffe is a practitioner with a wealth of experience and many colorful examples and illustrations to help make the book both interesting and useful.  His orientation is to build on the positive instead of trying to fix the negative, resolving a problem before it becomes something larger by checking in, employing Daniel Goleman’s Emotional Intelligence, and utilizing the tool of appreciative inquiry to increase the power of listening within families who are conflicting.  This book is an amalgam of thoughtful insights and practical suggestions with illustrating case studies — a good reference book for families on this journey.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Mark Haynes Daniel and Sara S. Hamilton © 2010

This book would be a perfect textbook for family owned businesses. It is very clearly and concisely written, and is organized in a more academic way in which concepts are presented and excerpts  from other family business thinkers, books, or case studies are incorporated as an additive feature (usually in light-blue cutouts).  It is important to emphasize the vast array of experience and knowledge the authors have but also to consider that it is not an ‘easy-read’ because of the sheer amount of information being presented. The book also has checkpoints and questions for progression on each topic at the end of each chapter.

They coined their own phrase called a ‘Legacy Family’, which includes emphasizing family legacy, history, family wealth, and a tangible strategy which all starts with a detailed understanding of who/what that particular family ‘is’. This is based on their research and practice with successful family businesses. They assert that “protecting and building a true definition of legacy is all about identifying and preserving what the family holds most dear – through time and across generations.”

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Myron E. Sildon © 2012

This book is  published by the American Bar Association.  It is an excellent reference for any family advisor or business owner who is considering sale of a closely held business.  While this book only has about 30 text pages, it is pound for pound one of the best resources we have seen as a primer on how to sell one’s business — how to think about it, how to plan for it, the tax implications, the legal implications and the administrative must-do’s as you execute it.  And as an added bonus he explicitly considers the interplay of family dynamics in selling the family business.

It concludes with over 70 pages of questionnaires, forms and sample documents, including a  Succession Planning Questionnaire, Confidential Information Memorandum, Confidentiality and Non-Discloser Agreement, Letter of Intent, Buy-Sell Provisions and so on.  Pick it up — you will be glad you did.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Samuel C. Johnson © 1988

The phrase oldie but goodie is an apt description of this book. We are fortunate enough to hear from a family business owner who was at the time leading Johnson and Johnson, a company that is  even today cited as an exemplary family owned business.  The real value of the book is the wisdom from a person who has been where most family business owners have been, and has some suggestions for practices, as well as tested advice and perspective to lend.  It is a quick introductory read for those of your clients who might be inspired by his commitment to legacy.

The issues he highlights include servant leadership, successive generations becoming invested in the company, profit sharing for employees, and open-door policies for the company.  He really speaks to the virtue and need for wise council for family business owners in order for them to be more successful.  Johnson and Johnson has had a long history of corporate social responsibility, which he outlines extensively in this book. Not only is it corporate/foundational monetary giving but also giving employees time off to volunteer with their causes and employee contribution matching.

This family and family business really have an outward look to their community, employees and the family as a whole. This book displays how that outlook and methodology can lead to a lasting family owned business and a lasting family legacy.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Bonnie Brown Hartley and Gwendolyn Griffith © 2009

This book’s strength is its very readable and holistic perspective about family wealth transitions:  the focus of wealth transfer should not just be on the financial assets of the family but also on the family itself — how the family relates to one another, how the family cooperates and makes decisions, how the family plans to use its wealth, and finally, what the family wants to stand for in terms of its legacy.  In order to bring their concepts ‘alive’, the authors have created three fictitious and diverse family case studies.  When a concept, tool or theory is discussed there is an excerpt from one of the three family studies providing a dynamic and informative illustration.

This book does not by-pass the practical importance of information regarding taxes, gifting plans and the like but it recommends that before a family starts putting those legal/financial documents in place, they have a good understanding of what the wealth is and what they want to do with it.

Finally, the authors present four very useful stages for a family business advisor’s approach:

• Understand the systems at play and the developmental stages they are in (family, business, individuals)
• Inventory assets (financial, human and social)
• Map the family system utilizing a Genogram
• Use a circumplex model for the family of behaviors.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Susan Latremoille & Peter Creaghan with Frank Archibald, Linda Betts, Arnie Cader, Sheila Crummey, Tony Ianni, Stever Landau, Ron Prehogan and Pearl Schusheim © 2010

This book is a very readable, if fictional, account of a family business founder and his wife wrestling with the choices surrounding their exit from a family business and the resulting wealth transition to their children.  This book’s authors clearly advocate for the value of an advisory team of family advisors including tax planners, estate lawyers, wealth management specialists, life insurance advisors and general family advisors.  Best practices for advisory boards and boards of directors, including compensation,  are also reviewed.  The fictional couple consider several options for exit and transition including outright sale of the business, succession to a family member and setting up trusts for their children.

This is an interesting and largely accurate look at some of the dilemmas that family business owners/founders will one day certainly face. Whether you choose to use a team approach or not, these are all considerations that are smart to be explored.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Roy Williams and Vic Preisser ©2003

This book is based on research of 3,250 wealthy families regarding their legacies.  It is extraordinarily insightful.  This book reveals what these successful families had in common—how they achieved and maintained family harmony, and ensured the smooth transition of their wealth to well-adjusted heirs.  They also warn of the wide range of factors that cause  families to be unsuccessful in their wealth transition. It contains clear, concise, well organized, and easy-to-follow instructions that will enable family businesses to evaluate or create their plan for transitioning family wealth.

This book can help family businesses develop a plan based upon  family values underlying the accumulation of wealth and prepare heirs to be good stewards and thoughtful administrators of that wealth.  It is also an important resource for other family advisors  (i.e. estate lawyers, financial planners) to use with their clients.

This is a great resource for any family business owner contemplating a wealth transition.  It is an easy read and informative.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

]]> http://familyworkblog.com/2012/03/22/march-2012-book-review/feed/ 0 Renee Montoya Lado Preparing Heirs http://familyworkblog.com/2012/02/15/february-2012-book-review/ http://familyworkblog.com/2012/02/15/february-2012-book-review/#comments Wed, 15 Feb 2012 16:33:24 +0000 SDL http://familyworkblog.com/2012/02/15/february-2012-book-review/ ]]> The Smart Divorce: Proven Strategies and Valuable Advice from 100 Top Divorce Lawyers, Financial Advisors, Counselors, and Other Experts

Written by Deborah Moskovitch ©2007

The enormous success of the “DUMMIES” book series is self evident.  If ever there was a ‘Divorce for Dummies’, this would be it —  meaning no disrespect.

It is at once a resource book replete with definitions, practical advice and lists and lists of resources.  It steps the reader through the ‘land of divorce’ with a straight forward pragmatism.  The book is an easy read and informative.  One can imagine it dog-eared and coffee stained on someone’s kitchen table.  Go right out and send this book to any of your friends that might be contemplating a divorce or worst case, who might have been served with papers asking for a divorce.  It will serve as an orientation — a travelers’ guide to the impending terrain.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

Family Owned Business Network  Senior Book Reviewer

Written by Loyd H. Rawls 2nd Edition ©1999-2004

The author of this book is a practitioner and a principal in his own financial planning firm.  We emphasize that because therein lies the value and credibility for any family business founder. 

This is an excellent resource for any member of a family business, particularly in the area of financial planning, whether or not one might be ready to ‘exit’ your business.  The information and advice regarding regulations, taxes, estate planning etc. will be invaluable.  Interestingly Mr. Rawls also ably tackles other management and family issues such as succession, communication and family relationships.

The format of the book is quite helpful, with case studies in each section which are additional learning options to the reader should they require more application to the concepts and principles he teaches.  We found the book quite optimistic about a family’s ability to grapple with and finally master major dilemmas in the areas of succession, exit or difficult familial relationships.

This book is not a quick or easy read per se but definitely a resource that any founder/owner would be remiss to have not read.  By the way, if you are going to order this book, be sure to order the 2nd edition, the changes from the first edition are very important.

Renée Montoya Lado M.S., N.C.C

President, Strategic Designs for Learning

Family Owned Business Network  Book Review Chair & Editor

Natalie McVeigh, MBE

Research Analyst, Strategic Designs for Learning

 Family Owned Business Network  Senior Book Reviewer