834 THE ADVOCATE
VOL. 77 PART 6 NOVEMBER 2019
a holistic picture of the family enterprise system to better serve families.
Independent advising has often led to the family business client receiving
different or conflicting advice from different advisors. To improve the quality
and consistency of advice, researchers have suggested that advisors from
different disciplines work collaboratively and take all three subsystems—
family, business and ownership—into account when addressing the issues
facing the family enterprise.22
While working in multidisciplinary teams using a systems perspective
provides a more comprehensive and coordinated approach to assisting a
business family, this approach is not without its challenges. Advisors who
have developed the most enduring relationships with business families
were often able to do so by “quarterbacking” a larger advisory team.
Advisors, with the proper professional training, skills and processes in
hand, can have a positive impact on the economic and non-economic value
and wealth creation of family enterprises. This can largely be attributed to
advisors who help the family understand that there are ways to manage the
firm that are more effective than traditional management and operational
patterns developed by the family. As family firm advisors work together to
integrate multidisciplinary advice, they can better assist the business family
in preparing for wealth transitions.23
A new approach to continuity planning is a family-first, multidisciplinary
approach, in the context of the overall business family system. Governance
provides structures to facilitate communication and clarify a united vision.
On that foundation, critical legal and tax structures will then enable a family
to build and transfer its unique version of transgenerational wealth.
1. See Danny Miller et al, “Are Family Firms Really
Superior Performers?” (2007) 13:5 J Corp Finance
829 at 836.
2. See The Family Firm Institute, Inc, Family Enterprise:
Understanding Families in Business and Families of
Wealth (Hoboken, NJ: Wiley, 2013) at 2.
3. See Jon C Carr & Jennifer M Sequeira, “Prior Family
Business Exposure as Intergenerational Influence and
Entrepreneurial Intent: A Theory of Planned Behavior
Approach” (2007) 60:10 Journal of Business
4. See Amy M Schuman, Wendy Sage-Hayward &
David Ransburg, Human Resources in the Family
Business: Maximizing the Power of Your People
(New York: Palgrave Macmillan, 2015).
5. Deferred assets are assets that do not come into play
until after death, like insurance and annuities.
6. See W Edwards Deming, The New Economics: For
Industry, Government, Education, 2nd ed (Cambridge,
Mass: MIT Press, 2000) at 50.
7. See Renato Tagiuri & John Davis, “Bivalent Attributes
of the Family Firm” (1996) 9:2 Family Business
8. See ibid.
9. John L Ward, “The Special Role of Strategic Planning
for Family Businesses” (1988) 1:2 Family Business
10. See Thomas Markus Zellweger, Robert S Nason &
Mattias Nordqvist, “From Longevity of Firms to Transgenerational
Entrepreneurship of Families: Introducing
Family Entrepreneurial Orientation” (2012) 25:2
Family Business Review 136.
11. See ibid.
12. See James E Hughes Jr, Susan E Massenzio & Keith
Whitaker, Complete Family Wealth (Hoboken, NJ: