Families operating in Stage 4 find that they are learning a great deal about how to be a family that is characterized by sustainable and generative collective relationships. Often these families are in generations 2 to 4 though rarely larger families in generation 1 can reach this if they expand their engagement to the non-nuclear family that generated the wealth. The transition to this stage is often marked by a shift towards family thinking that is highly strategic around the intersections and inflection points of business, wealth preservation and philanthropy. The family begins to engage in activities for multiple motives and from different perspectives. For example, philanthropy is seen as a strategic intervention that expresses family values of contribution, trains the next generation in asset management and overarching organizational strategy (through grantmaking), develops connections into the community by board involvement, supports business and commercial objectives, obtains technical tax advantage, and so on. This more strategic engagement excites and engages family members and pulls them into the family dynamic more deeply by appealing to multiple perspectives and richer possibilities of engagement.
Of course, conflicts continue to surface in these families but these conflicts are often seen as opportunities for creativity and innovation. When healthy dynamics exist, most of the conflicts are resolved in an atmosphere of open and generally compassionate dialog with the recognition that the family will be around long after the conflict subsides. When feuds and drama do arise, wiser heads in the family work to contain it and use it as constructively as possible for the good of the family. The family faces difficult decisions, but there is a degree of condor that allows for open dialog on difficult and even painful issues. Individuals are pursuing their dreams with the support of the family as whole. Family members with problems are supported without being inappropriately coddled. In the same way, each family member is seen as having something valuable to contribute to the broader family and is expected to give time and effort to the good of the extended family. When done well, connecting structures (such as trusts, business entities, and charitable endeavors) become an integrating point of conversation in these families. We find that these families typically need help with roadmaps, inclusion and efficiency as well as managing the complexity of the emerging structures and more complex family ties.
Questions:
- Do you have any clients that are in this flowing stage of development?
- Do you know of any families that are in this stage?Of your wealthier clients, how many would be inspired by this kind of vision?
— October 6, 2010