family business

Knowledge & Wisdom Transition in Family & Business

Knowledge & Wisdom Transition in Family & Business

by Jonathan Roth Magidovitch

First, this note of caution: a poorly handled transition of knowledge and wisdom will set loose tsunami waves of disruption

We have an archetype of such a broken transition in Hebrew Scriptures.  From his death bed Jacob (Yisrael) the Patriarch gathers his children and shares key information with them:

Then Jacob called for his sons and said: “Gather around so I can tell you what will happen to you in days to come. … Your father’s blessings are greater than the blessings of the ancient mountains, than the bounty of the age-old hills.” Genesis 49

Jacob acts with best intentions, but the result is fraught with difficulty:

When Joseph’s brothers saw that their father was dead, they said, “What if Joseph holds a grudge against us and pays us back for all the wrongs we did to him?” Genesis 50

This Biblical “uh-oh” moment is something many family businesses experience. Faulty transitions lead to infighting which is costly to the value of the business and to the cohesion among the family. Therefore, diving into the subject of transitions is of high value.

Our subject is transition of knowledge & wisdom in family business.  We make the parallel to elders blessing their children to provide a framework for understanding transitions.

Transitions are often thought of as final, definite acts by the patriarchal leader or his proxy. Given this compression into a single, final moment, such transitions tend to be dramatic, emotional and subject to a variety of disruptions.

There is little time and huge potential for interference making it difficult to validate the transition, contextualize it or stabilize it within the successor generation.

Key modes of understanding transition include:

  • magical
    • The elder manipulates forces (tools) which bestow upon the younger capabilities the elder deems core to running the business.  This transfer may not actually include training or information. Think here of the Wizard of Oz who bestows brains, heart and courage.
  • mystical
    • The elder invokes a metaphysical force which bestows upon the younger the rights and capacities of leadership.  This is akin to coronation in bringing to the younger a “divine right of kings” type leadership
  • informational
    • The elder turns over access to e.g. the CRM database, the location of skeletons, relationships with service providers; in sum, all the skills and knowledge to run the business.

Each mode comes from a mindset, a culture of the family.  Often, more than one mode is used though there is a dominant mode.

In the “magical mode” the most notable attribute is manipulation.  There is an actor, a decider, a doer.  And there are objects of action, receivers who are not given control, who are corralled into passivity and in whom there is a build-up of resentments.

A business might choose this magical mode with the belief that the competition it sets up among the owner-employees serves to hone the skills of each.

In the “mystical mode” there is a sense that this business is “bigger than each and all of us.” There are values here that the patriarch has been stewarding and now is passing that stewardship on to the next patriarch.

A business would choose this mystical mode with the belief that the business’ core values are broadly accepted as valuable and that broad acceptance sustains the business and unifies the owner-employees.  Typical of this mode is Subaru which promotes the values of sustainability and of multiculturalism.  These values are demonstrably present in their products and are central all the way from design through marketing.

The “informational mode” is marked by beliefs about adherence to best practices.  Emotion is allowed a place in the process but it does not drive the process.  Quantifiables are the drivers.  In this mode, there may be a patriarch, but this person would have powers limited by documented procedures.  Transition also would be delineated by those procedures.  This compares to the Kings of Ancient Israel who ascended to the throne only after having handwritten for their future reference a copy of Scripture and this text was kept handy on a shelf built into the seat of their throne.

A business would choose this informational mode with the belief that it provides stability by limiting capricious action.  This stability however is directly related to the quality of the core management document and its inherent procedures.

Timing is everything. The above modes matter, but as much or more, timing matters.

Returning to the image of a parent blessing their child, if a parent were to place their hands on their child’s head and say words of blessing, beautiful well-considered words, this would seem to be good.  But, if every day prior to that act of blessing the parent said and did things to and around that child that were difficult or damaging, it would be near impossible for that child to receive the blessing outside that context.

Therefore, rather than thinking of blessing as a final and definite act, consider blessing to be the sum total of all the energy that has ever been directed by the parent to the child.  Blessing begins at the child’s birth and continues 24/7 even if you don’t think the child hears and even if the child is not in the room at that moment.  This is not magical or mystical.  This is because actions come from somewhere inside.  If we hold a belief and only say it behind someone’s back, that belief still influences how we act and they still pick it up; they still feel its shadows and repercussions.

Similarly, business transitions of knowledge and wisdom are not effective if thought of as some final act. Transitions of knowledge and wisdom must be part of the ongoing consciousness and work of the business. From the moment of taking the helm, a leader must actively be preparing for their own retirement and for healthy succession.

The leader must consider ongoing that the future transition must be perceived as valid by the stakeholders of the business. The leader must create a context for transition and must be explicit about this context.  That is, transitional constructs cannot be hidden in hints and parables. The leader must stabilize transitions by creating a culture that supports transitions.

Don’t wait.  That is the central advice about transition of knowledge and wisdom.  As a family or business leader make transition an ongoing part of your work.

Jonathan Roth Magidovitch works in the US and Israel as a coach/consultant for individuals, families and family businesses. He is the principal of Yosef Meged Consulting.

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Leadership Best Practices: Respecting Multiple Perspectives

Leadership Best Practices:  Respecting Multiple Perspectives
January 2015
by Jonathan Roth Magidovitch

The best leaders do more listening and less telling.

But to what do they listen?

We all are accustomed to hearing multiple accounts of the same events.  What parent hasn’t heard, “But, Mommy, he started it.” What CEO hasn’t heard that the problem comes from another department.

To deal with multiple accounts of the same event, there are tools to guide parents, CEO’s and all leaders.

One such guide is probably already in your house.  Open the family Bible.  Matthew, Mark, Luke and John, the four Gospels, are each telling the same story.  They are each biographies of the life of Jesus and they are not the same. Each disciple has his own take.

You might expect that we would be hearing a lot of sermons about which Gospel gets it right, but that doesn’t happen.  Instead all four perspectives stand as authoritative and worthy of respect.

From a Jewish perspective, we have the adage “two Jews, three opinions.”  It is part of the culture to disagree, often vociferously, on everything, and at the end of the day, everyone is still part of the family.

As leaders, it is our job to hear out various perspectives and process the entirety into an overall understanding.

There is a caveat:  this processing is not just about facts.  The leader’s job is not as simple as determining who is correct.  Perceptions and feelings and agenda are significant parts of the picture.  As leaders we understand that each perspective represents some element of the target population for whatever product or service our business is offering.  As parents we understand that each perspective is part of the unified vision for our family.  We may personally differ with what we hear, but choosing to hear it anyway makes our decisions robust.

The leader’s job is to hear multiple perspectives and understand from them how to proceed with real actions in the real world.

The leader responds to each voice with respect and gratitude.  Having been part of the conversation is what matters about the team members.  The leader is ultimately responsible for making the decision.  That decision being correct or not accrues to the leader having properly understood the various inputs.

Furthermore, it is the work of a good leader to make sure that the voices around the table do actually represent crucial aspects of the target population.  Ten voices saying one thing could signal unanimity in the target population. However it could also mean that there is something wrong with the team or the management processes. That is, “Is dissension allowed?  Have people with various perspectives been brought to the table?”

Going back to Scripture, there are actually more than four Gospels.  The others did not make it into the Bible. Instead they are found elsewhere in New Testament as apocrypha or pseudepigrapha.

These other Gospels did not pass whatever review.  And, perhaps there are yet other gospels that did not pass muster even to the level of being preserved at all.

Not all voices get heard and that is an issue.  It may be a moral issue or a validity issue.  And, there are procedural issues here as well.

Who gets to speak at our table?  That is the question. A fact of human capacity is that we don’t have time or treasure enough to hear all the possible voices.  How we determine who gets to our table matters.

Here are some considerations:

  1. Is someone knocking on our door?  If someone has expressed a desire to speak in our group why have we declined them?  If it’s racism or sexism or any other “ism” this is a moral failure which will lead to a business failure.
  2. Have we searched for team members broadly enough?  In business we have a sense of our target audience.  It is important that audience is represented in the thought process of our business.  To assume we know people’s thoughts and preferences especially across cultural lines is taking on unnecessary risk.   ***   Furthermore, have we understood our target audience?  Maybe people in addition to those we’ve already identified could be in our target population.  Find ways to discover new segments.  For example, look at your sales records for outliers and find out who they are.  Or, talk with other leaders or experts.
  3.  Are we listening only at certain times and in certain places?  Being a leader is 24/7 work.  Listening at meetings matters but it also matters that off chance of hearing something in a song lyric or in a phrase caught from the conversation of passers-by.

Wherever we stand as leader, be it home or office, a key part of our role is processing correctly multiple understandings of events.  Each input represents some part of the picture.  The points presented here will increase your clarity in deciding the right thing to do.

Jonathan Roth Magidovitch works in the US and Israel as a coach/consultant for individuals, families and family businesses. He is the principal of Yosef Meged Consulting.

Faith Based Consulting: An Introduction

Faith Based Consulting: An Introduction

by Jonathan Roth Magidovitch

I am a rabbi and I have a priest.  She keeps my head on straight.  She is Episcopalian.  I say, “everybody needs a Rabbi and every Rabbi needs a Priest.”

I work as a coach, mentor, consultant for businesses and nonprofits, individuals and families. Most of my clients are Christian.  Some do not adhere to any faith.  In Faith Based Consulting, the faith or lack of faith of the client does not matter except that they are open to having faith in themselves.

Faith Based Consulting is not religious even though the language comes from that world.  Faith Based Consulting is not judgmental.

Faith Based Consulting is practical.

The tools of faith based consulting include Hebrew Scripture and New Testament.  The stories in these books contain key guidance for a broad range of business and family situations.  Below are examples of how these stories work as guidance.

Other Faith Based Consulting tools include rituals from various faiths.  Mikvah, Jewish ritual immersion, (related to Baptism) is a powerful way to mark having finished with something in the past and gotten ready for a new start.  Lighting a candle appears in Catholic, Protestant and Jewish ritual.  The act of lighting a candle can bind your business, your family or you personally to a departed person’s vision and values that you want to maintain.

Also among the tools of Faith Based Consulting are the practices: “speaking truth to power” and “speaking truth to habits.”  Truth to power means we will tell a leader who only has “yes” people around them what that actually costs in lost perspective and competitiveness.  And, we will likewise speak truth to habits.  Doing something today because it was done yesterday is poor practice. We will encourage more well thought out management process.

Here are examples of some scriptural tools at work:

Example One

Your goal is to find a good woman to marry and raise a family with her.  Then, don’t date married women.  Not just because its against commandment seven of the Ten Commandments.  Don’t date a married woman because the woman you do want to marry will “see” that part of your personality even if you manage to cover your tracks and that “right woman” will avoid you.

This is the same for how you do business.  If you want good companies to do business with you then be a good company.  Operate by the practices of the companies you respect.

Example Two  

You are the head of a family business.  You determine compensation and you say, “blood is thicker than water,” so you pay blood relatives twice as much as in-laws.  This results in stress in every employee and their family.  This reduces their sense of shared purpose at work.  This opens your business to a world of risk.

Jesus’ first miracle, at Cana, was to turn water into wine. And, at the Last Supper He announced, “this wine is my blood.”  Water becomes wine which becomes blood.  Water and blood can become the other.  Stranger can become family.  Family can become stranger.  Each and all are to be valued for what they are and for what they have made of themselves.

Compensation, therefore, is not to be determined by blood relationship.  It is determined by skill and effort suited to the job.  There are other tools for distributing money among family.  Do not make the mistake of mixing family and business, especially in a family business.

Example Three

Your business’ leader is approaching retirement.  Time has come to determine a successor.  From which pool of candidates might the successor come?  Is your business going to be most successful as a dynasty or as a “best person gets the job” kind of business.

Moses’ son did not succeed him as leader.  David’s son did succeed him.  And, Zelophehad’s daughters succeeded him.  Each of these stories is rich with detail that gives insight to your succession planning.

In Faith Based Consulting identifying goals focuses the work.  The work includes:

  • finding assets and deficits
  • developing strategy and tactics to meet goals
  • implementation
  • assessment

In every step, the tools of Faith Based Consulting are applied.

We are usually called in at a point of transition.  Perhaps this is the death of a key figure or the failure of a project.  These are moments when you may have lost faith in yourself or your business.  We help you restore that faith.

Yosef Meged is a business and personal coach working with individuals, families and businesses. Yosef lives and works in the United States and Israel.  You can reach him at yosefmeged18@gmail.com.  In the USA, Yosef works under his American name:  Jonathan Roth Magidovitch.