Legacy Builders: Strategies for Building Successful Family Enterprises

In this episode, Judi Cunningham shares insights on building resilience when faced with adversity during strategic planning for family enterprises. We explore the importance of facilitating open and curious dialogue to understand differing perspectives, giving family members agency in conversations, and assessing what's truly important to make clearer decisions.

Hear Judi's perspective on transforming unproductive communication into a constructive discussion over time, establishing clear family versus business roles to reduce confusion, and implementing information-sharing protocols as more households take ownership. She offers examples of leaning on wider communities or specialists like her Trella Advisory Group when alignment remains elusive internally.

Throughout our discussion, Judi offers insightful takeaways to put into action - make room for open dialogue even when uncomfortable, clearly delineate family versus business roles, implement structures around information flow and decisions as ownership broadens, and don't hesitate to access outside help when stuck.

About Judi Cunningham

Judi Cunningham is the founder of Trella Advisory Group, a consulting firm that works with family enterprises and families of wealth. With a Master’s in Family Systems Counseling and over 25 years of experience, she excels in navigating complex family dynamics and business challenges. Judi’s strategic insight and facilitation skills help families find alignment and address tough decisions. Judi is known for her innovative educational initiatives. She pioneered the Family Enterprise Advisor Program, establishing global standards for professional advisors. In addition to her for-profit work, Judi volunteers her time to support multi-generational family success. She serves as the Chair of the Board for the Purposeful Planning Institute which helps advisors serve families of wealth and families in business.

Resources discussed in this episode:

• https://purposefulplanninginstitute.com/

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd.

• Website: BeaconFamilyOffice.com
• LinkedIn: Cory Gagnon
• LinkedIn: Beacon Family Office
• Email: beaconfamilyoffice@assante.com

Contact Judi Cunningham | Family Enterprise Consultant and Educator: 

• Website: trella.ca
• Twitter: @TrellaGroup
• LinkedIn: Judi Cunningham
• Phone: (604) 360-1516
• Email: judi.cunningham@trella.ca

In this episode, Leah Tolton shares insights on business governance and ownership transitions for family enterprises. We explore the importance of flexibility in shareholder agreements, setting clear expectations around participation to prevent disputes, formalizing information flow as more households get involved, and not letting perfect planning delay progress. Hear Leah's perspective on navigating fair vs equal dynamics, protecting assets in marriages, and bridging generational risk profiles.

How can transitioning from first to third-generation ownership be smooth? Leah offers examples of family and ownership meetings to align on goals. We also discuss prenuptial agreements, estate freezes, and special shares to balance liquidity needs across generations invested in the business.

About Leah Tolton

Leah has practiced corporate law for 30 years, with extensive experience advising family-owned businesses, lending clients, and real estate clients on a broad range of matters including business agreements, tax planning, equipment leasing, mergers and acquisitions, real estate joint ventures, business structuring, and reorganizations. Her practice emphasizes serving ultra-high-net-worth families and their companies across critical areas such as corporate governance, succession planning, reorganizations, strategic planning, risk management, and navigating mergers, acquisitions, and sales transactions.

Additionally, Leah negotiates and drafts commercial contracts advises on private financing and syndicated lending arrangements, earned the Family Enterprise Advisor designation in 2023, and sits on the Board of Advisors of the Alberta Business Family Institute. This wide-ranging expertise and dedication to serving family enterprises equips Leah to provide tailored legal advice and counsel to family businesses seeking to establish continuity across generations.

Resources discussed in this episode:

• Beyond Succession Podcast 

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd.

• Website: BeaconFamilyOffice.com
• LinkedIn: Cory Gagnon
• LinkedIn: Beacon Family Office
• Email: beaconfamilyoffice@assante.com

Contact Leah Tolton | Partner at Bennett Jones: 

• Website: bennettjones.com/ToltonLeah
• LinkedIn: Leah Tolton
• Phone Number: (780) 917-4272 
• Email: toltonl@bennettjones.com

We're honoured to tap pioneering succession advisor Gerry Meyer for the first 2024 episode of Legacy Builders. Guiding families and firms through leadership changeovers for over 30 years, Gerry unpacks the forward-thinking strategies that enable generational continuity.

He spotlights communication and accountability as the bedrocks for seamless transition planning. We discuss best practices for aligned expectations across generations, detailed timelines for readiness as well as Gerry's proven enterprise blueprint to future-proof any family company.

Gerry also provides invaluable perspective into the unique inclusion challenges facing non-family executives in navigating complex family dynamics. Tune in for critical lessons on the long view needed to enable both family and company to thrive across leadership eras now and for generations to come.

About Gerry Meyer

Gerry is the founder of Meyer Advisory Group. He is a highly experienced leader and enabler of organization effectiveness and transformation with 36+ years as an HR practitioner, consultant, and advisor. He provides trusted, authentic, and values-based leadership across a diverse range of business environments including public and private sectors, family enterprises, non-profit, real estate, high-tech, and professional services industries. He advises on a broad range of business issues including HR and business strategic planning, executive/leadership recruitment, next-generation development and succession planning, talent acquisition and retention, employee performance development and high potential programs, executive compensation and total rewards, and business and family governance. 

His experience encompasses multiple business cycles in different industries including upswings and downswings – seeing both growth and recessionary markets and addressing the realities of each. Gerry holds a CPHR (“Chartered Professional in Human Resources”) and FEA (“Family Enterprise Advisor”) designation as well as a Bachelor of Economics and Labour Relations from Carleton University. 

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd. 

• Website: BeaconFamilyOffice.com
• LinkedIn: Cory Gagnon
• LinkedIn: Beacon Family Office
• Email: beaconfamilyoffice@assante.com

Contact Gerry Meyer | Founder & CEO Meyer Advisory Group: 

• Website: https://meyeradvisorygroup.com
• LinkedIn: https://www.linkedin.com/in/grjmeyer/
• Email: grjmeyer@meyeradvisorygroup.com
• Phone: (778) 980-0734

In this podcast, Cory engages in a conversation with Barb, unveiling the intricate dynamics of family enterprises through Barb's extensive experience. Throughout their discussion, Barb sheds light on the varied yet common threads among family-owned businesses, particularly emphasizing the pivotal areas of succession and continuity planning. She underscores the often-overlooked aspect of thoughtful preparation, stressing the need for timely succession planning and urging families to commence this process well in advance.

Barb's profound expertise shed light on the nuances of integrating external directors into family enterprises and the potential challenges that may arise during this process. The necessity for board evaluations, addressing potential dysfunctions, and aligning with family values emerged as key themes. Moreover, the conversation explored the role of the board chair, emphasizing the chair's responsibility to ensure everyone's voice is heard, thus fostering an environment of mutual respect and productivity.

Throughout the conversation, Barb offered practical insights, emphasizing the delicate balance between control and integrating external perspectives. Her suggestions included mentorship programs, tailored coaching, and the integration of external voices, all aimed at guiding the next generation and facilitating smooth transitions within family enterprises. Furthermore, her approach emphasized a thorough understanding of the organization's current state, bridging alignment gaps, and preparing for the seamless integration of high-powered management teams.

About Barb Schimnowsky

Barb Schimnowsky is a Partner and leader in WATSON’s Board Director and Executive Search practice, boasting a robust background of over 25 years in executive search and human resources. Renowned for her expertise as a Certified Management Consultant and Family Enterprise Advisor, Barb's reputation stems from her exceptional ability to identify and recruit senior executives. Her personalized approach ensures a tailored match for every Director, Chair, and executive search, establishing her as an unparalleled connector between clients and their ideal candidates. During her tenure at KPMG, spanning two decades, Barb honed the delicate art and science of executive search, mastering the nuanced balance required for success.

Throughout her career, Barb has triumphantly concluded numerous recruitment endeavors, placing adept candidates in diverse senior management and executive roles across various sectors and functions. Recognized for her commitment to understanding each client's needs and business, Barb is often perceived as an integral part of her teams. Outside her client engagements, she channels her passion for advancing the human resources domain by actively contributing to publications and groups within the executive search and HR sectors. Barb's affiliations include memberships in the Canadian Association of Management Consultants, Family Enterprise XChange, and the BC Human Resources Management Association. Her extensive community involvement also spans past Board positions in significant organizations like the Abbotsford Police Department, KidSport Abbotsford, 2004 BC Summer Games, Pacific Sport Fraser Valley, and the Surrey Library Board. Her contributions to the community have been recognized among Abbotsford's Top 100 Most Influential People, highlighting her multifaceted impact and commitment beyond her professional endeavors.

Resources discussed in this episode:

• KPMG: https://kpmg.com/ca/en/home.html
• CMC: https://www.cmc-canada.ca/

—

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd. 

• Website: BeaconFamilyOffice.com
• LinkedIn: Cory Gagnon
• Linkedin: Beacon Family Office
• Email: beaconfamilyoffice@assante.com

Contact Barb Schimnowsky | Watson Board Advisors: 

• Website: https://www.watsoninc.ca/ https://www.watsoninc.ca/team_member/barb/
• LinkedIn: https://www.linkedin.com/in/barbschimnowsky/
• Email: barb@watsoninc.ca

In this episode of the Legacy Builders Podcast, we sit down with Trevor MacLean, a Partner at MNP's Agriculture team in Lethbridge. With over two decades of experience, Trevor is dedicated to providing creative, customized, and practical solutions to agricultural producers and agribusinesses throughout Western Canada. Drawing on his extensive background in agribusiness and financial services, Trevor excels in identifying key issues and crafting tailored solutions to manage risk, improve performance, and capitalize on emerging opportunities.

Trevor shares his motto of "be aware, be curious, and be inspiring," emphasizing the importance of lifelong learning and leadership in both personal and professional life. The conversation delves into the challenges of family farm transitions, the complexities involved, and Trevor's unique approach to initiating a family chemistry meeting to navigate these sensitive discussions. He highlights the significance of finding alignment on the purpose of the enterprise, advocating for a strategy that involves planned, interdependent systems to protect family and ownership.

Trevor's wisdom extends beyond the professional realm; he discusses the changing landscape of agriculture, the impact of technology, and the delicate balance between harvesting and planting wealth for future generations. As families embark on the challenging journey of succession planning, Trevor's insights serve as a valuable guide, reminding listeners that successful transitions require teamwork, vulnerability, and a focus on the long-term legacy.

About Trevor MacLean

Trevor MacLean, MBA, BMgt, is a dedicated Partner at MNP's Agriculture team in Lethbridge, bringing over 20 years of experience to provide specialized business and advisory services across Western Canada. With a focus on creativity and customization, Trevor empowers agricultural producers and agribusinesses by delivering practical solutions that enhance overall success. His role involves leveraging his extensive background in agribusiness and financial services to offer clients a unique and balanced perspective, excelling in issue identification and tailored risk management, performance improvement, and capitalization on emerging opportunities. Trevor's academic achievements include an MBA from Royal Roads University and a BMgt from the University of Lethbridge, specializing in accounting and co-op education. Beyond his professional pursuits, Trevor actively contributes to the local and agricultural community through various volunteer roles, showcasing a deep commitment to community development.

Resources discussed in this episode:

• Royal Roads University - https://www.royalroads.ca/?gad_source=1&gclid=Cj0KCQiAmNeqBhD4ARIsADsYfTflGXUiEibjZIcH7zJDKSz6MgbTP6NGLBzCmPSfWHuce1oOhhOMV4IaAp93EALw_wcB
• MNP - https://www.mnp.ca/en/personnel/trevor-maclean

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd. 

• Website: BeaconFamilyOffice.com
• LinkedIn: Cory Gagnon
• Linkedin: Beacon Family Office
• Email: beaconfamilyoffice@assante.com

Contact Trevor MacLean | Partner at MNP 

• Website: https://www.mnp.ca/en/personnel/trevor-maclean
• LinkedIn:  https://www.linkedin.com/in/trevor-maclean-mba-fea-14708220/
• Phone: 403-380-1642
• Email: trevmac4@gmail.com | Trevor.Maclean@mnp.ca

Welcome to episode 6, where we unravel the intricacies of wealth transition and the vital role of family values in preserving legacies.  

In this episode, we delve into the art of aligning family values with astute financial strategies. I bring over a decade of experience advising family enterprises to the forefront, sharing real-life stories that highlight the transformative power of values-driven wealth transition.

Discover practical strategies such as tailored curriculum development and holistic financial literacy, and learn how experts like wealth advisors and estate planning lawyers can be your allies in achieving a seamless wealth transition.  

Resources discussed in this episode:

"Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values" (book by Roy Williams and Vic Preisser)

"Family Wealth Continuity: Building a Foundation for the Future" (book by Courtney Pullen)

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd.  

Website: BeaconFamilyOffice.com

LinkedIn: Cory Gagnon

LinkedIn: Beacon Family Office

Email: beaconfamilyoffice@assante.com

Defining Philanthropy:

• Philanthropy is introduced as a means of improving the world by utilizing available resources.
• Melinda Gates' quote on philanthropy is shared to emphasize its significance.
• Philanthropy's role in legacy planning is discussed, focusing on passing down shared values and making a positive impact on society.

Generational Wealth and Philanthropy:

• Generational wealth is explained as a collection of assets built over time, providing financial stability and opportunities for future generations.
• Incorporating philanthropy into wealth management allows individuals and families to align their values with their financial decisions.
• Philanthropy goes beyond financial success, offering a sense of purpose and fulfillment.

Starting the Philanthropic Journey:

• Recommendations are provided for those new to philanthropy, including starting small, identifying causes of interest, and seeking guidance from professionals.
• The benefits of philanthropy in strengthening family bonds and instilling social responsibility are highlighted.

The Two Dimensions of Philanthropy:

• Philanthropy's focus on creating lasting and sustainable change is discussed, emphasizing addressing root causes and filling gaps through innovation.
• The example of a client, Jane, is used to illustrate the transformative power of integrating philanthropy into wealth management.

Engaging the Rising Generation:

• The importance of uniting family members around a common philanthropic cause is emphasized.
• Uniting generations fosters a sense of social responsibility and a culture of generosity.
• Family philanthropy can work in collaboration with other organizations on a global scale.

Benefits of Philanthropy:

• Philanthropy's influence, ability to bring about change, and role in advocating for social causes are highlighted.
• Emotional and personal benefits for donors, including increased well-being, are discussed.
• Philanthropy as a means of fulfilling social responsibility and leaving a positive legacy is explained.
• Tax benefits and improved networking and reputation are additional benefits.

Timing for Philanthropy:

• Considerations for determining the best time to start philanthropy are outlined, including ensuring financial stability and alignment of values.
• The personal nature of the philanthropic journey and its adaptability over time are emphasized.

Not Giving Back and Its Impact:

• The significant impact of not giving back on society is discussed.
• Insufficient support for social causes, limited funding for research and innovation, and less progress in critical areas are consequences of reduced philanthropy.

Further Learning:

• Recommendations for learning more about philanthropy, including book and Netflix series suggestions, are provided.

Conclusion:

• The episode concludes by summarizing the potential for positive change through family philanthropy.
• The significance of making a meaningful impact and shaping a better world for future generations is emphasized.

Introduction:

● Host Cory introduces Gena Rotstein, a leading figure in Canada's social enterprise and philanthropy realm.

● Her unique journey and perspective promise a captivating conversation.

From Collaboration to Innovation: Karma & Cents:

● Cory sheds light on Gena's collaboration with Richard Ouellette,, which gave rise to Karma & Cents, an innovative social impact lab.

● This venture stands as a testament to Gena's dedication to driving positive change in society.

A Unique Perspective on Wealth's Purpose:

● Gena's journey is colored by her distinctive perspective as a member of the rising generation.

● This cohort redefines the purpose of wealth, moving beyond financial success to contribute to a greater societal impact.

Guidance to Ultra-High Net-Worth Families:

● Gena's insights extend to ultra-high net-worth families, where she weaves family values, financial success, and social change into a cohesive tapestry of guidance.

Learning Through Failure: A Path to Strength:

● Through personal experience, Gena highlights the transformative power of immersing oneself in failure.

● She encourages individuals to confront challenges head-on, emerging stronger and more resilient.

Challenges in Philanthropic Understanding:

● Gena delves into the complexities surrounding philanthropy and charitable giving.

● She highlights the need for donors to ask the right questions, aiming to truly understand the impact of their contributions.

Redefining Philanthropy: The Birth of Social Purpose Businesses:

● Gena's experience leads her to rethink the concept of philanthropy.

● She discusses the emergence of social purpose businesses and how these endeavors

contribute to solving social issues.

Starting with "Why" in Philanthropy:

● Gena shares her approach to advising families on setting up their foundations. Instead of focusing on a dollar amount, she helps them identify their "why" and create a roadmap for impactful philanthropy.

● She emphasizes the importance of curiosity and empathy in this process.

Family Enterprise and Multi-Generational Continuity:

● Exploring multi-generational continuity, Gena talks about the challenges and strategies

for passing down family values and stories.

● She discusses the use of visual tools and storytelling techniques to keep family legacies alive.

Qualities of Successful Family Enterprise Leaders:

● Gena identifies curiosity, empathy, and active listening as key qualities for successful family enterprise leaders.

● She elaborates on each quality and highlights their significance in navigating complex

philanthropic landscapes.

Event 1: "Funding Systems-Level Change" with Paul Born

Date: September 13th

Time: 10 AM Mountain Time

Description: Join us for a thought-provoking conversation with Paul Born, founder and past CEO

of the Tamarack Institute. Discover insights into funding systems-level change and gain valuable perspectives on philanthropic strategies.

Event 2: "Enabling the Next Generation of Leaders" with Peter Jaswick

Date: November 15th

Time: 10 AM Mountain Time

Description: Don't miss this engaging session with Peter Jaskiewicz, a professor at the Telfer School of Business at the University of Ottawa. Explore strategies for nurturing and empowering.

the next generation of leaders in philanthropy and social impact.

Summary: 

This episode delves into the critical role of governance in family enterprises. It emphasizes how governance serves as the foundation for efficient and transparent family offices and businesses. The necessity of family governance is highlighted, particularly in the contexts of family offices, wealth management, succession planning, and estate planning. A practical scenario involving a family business also illustrating the benefits of structured family governance, including transparency, communication, and defined roles.

Importance of Governance in Family Enterprises:

• The significance of a robust governance structure for family offices and businesses is discussed.
• Governance is compared to the foundation of a successful family office, ensuring efficiency and transparency.
• A quote by Friedrich Nietzsche is shared to emphasize the role of love and unity in family governance.

Love, Unity, and Governance:

• Friedrich Nietzsche's words are used to illustrate the importance of trust and cooperation in family governance.
• The analogy of love as "oil that eases friction" and "cement that binds" is extended to governance.
• A well-crafted governance structure is shown to promote unity, trust, and shared values within a family.

Why Family Governance is Needed:

• The necessity of a governance strategy for efficient, transparent, and ethical family enterprise operation is explained.
• The relevance of family governance to family offices, wealth management, succession planning, and estate planning is noted.
• Cory Gagnon's experience in wealth management and family governance is mentioned.

Practical Scenario: John's Family Business:

• A scenario involving a family business led by John is presented.
• The family's decision to establish a family council and hold individual discussions with family members is discussed.
• The role of the family council in strategic decision-making is explained.

Benefits of Family Governance:

• The benefits of structured family governance are highlighted, including transparency, communication, and defined roles.
• The example of Craig E. Aronoff's quote on effective shareholders in family businesses is used to stress the importance of engagement, education, and collaboration.

Consequences of Not Implementing Governance:

• The potential consequences of lacking family governance are outlined, including conflicts, communication breakdowns, and inefficiencies.
• Decision-making challenges and accountability issues in the absence of governance are discussed.
• The importance of clear governance structures is emphasized.

Identifying Family Governance Components:

• The three components of family governance, periodic family assemblies, family council meetings, and a family constitution, are explained.
• Their roles in promoting communication, decision-making, and shared values are discussed.
• Reference is made to a Harvard Business School article on family governance.

Recommended Resources:

• Book recommendations for further learning on family governance are provided, including "Family Business Governance" by Craig E. Aronoff and "Harvard Business Review's Family Business Handbook" by Josh Baron and Rob Lachenauer.
• A TV show recommendation, "Succession," is suggested for those interested in fictional portrayals of family business dynamics.

Conclusion:

• The episode concludes by emphasizing the importance of structured governance for successful family enterprises.

Summary: 

In this episode, Cory introduces Trudy Pelletier, an expert in communication and governance for family enterprises. Trudy shares her inspiring journey, emphasizing the importance of understanding childhood experiences and living life with purpose. She defines her role as facilitating difficult conversations within families and highlights the need for open communication, especially regarding money matters. Trudy also addresses handling resistance within families and discusses common challenges in wealth transition, including unresolved family history. She explains the initial steps in starting family conversations and strategies for overcoming biases and stories that hinder effective communication. Finally, Trudy identifies three key qualities of successful family enterprise leaders: purpose, acceptance, and curiosity.

Introduction:

• Cory introduces the episode and guest, Trudy Pelletier, an expert in communication and governance for family enterprises.
• Trudy's extensive background includes 14 years of experience in private and family enterprises, holding designations in family enterprise advising, certified exit planning, executive coaching, and mediation.

Trudy's Inspirational Journey:

• Cory asks Trudy to share her inspiring journey and lessons learned.
• Trudy recounts a pivotal childhood moment when she decided to help people communicate better, leading her to her current career.
• She emphasizes the importance of understanding how childhood experiences shape our lives and the need to live life with purpose and self-regulation.

Facilitating Better Communication:

• Trudy defines her role as facilitating difficult conversations within families, making them easier by promoting positive intent, compassion, and acceptance.
• She highlights the necessity for families with wealth and businesses to engage in these conversations, especially regarding money matters.
• Trudy emphasizes that improving communication within families is an inside-out process.

Addressing Resistance in Family Communication:

• Cory asks about handling resistance from family members who avoid difficult conversations.
• Trudy explains that resistance is natural and offers coaching to deal with it effectively.
• She discusses how brain-driven behavior can hinder communication and progress.

Challenges in Wealth Transition:

• Trudy discusses common challenges families face in wealth transition and continuity, including unresolved family history impacting communication and affinity.

Starting Family Conversations:

• Trudy explains the initial steps in initiating these conversations, often starting with one family member.
• She emphasizes the importance of meeting with the entire family to assess their needs and her suitability for the task.

Overcoming Biases and Stories:

• Trudy addresses strategies for overcoming biases and stories that hinder effective communication, emphasizing the need for personal responsibility and building communication skills.

Qualities of a Successful Family Enterprise Leader:

• Cory asks Trudy about the top three qualities she believes successful family enterprise leaders possess.
• Trudy identifies purpose, acceptance, and curiosity as essential qualities for success in this role.

Cory Gagnon doesn’t just love supporting multi-generational families every day. He loves digging into topics and sharing information that matters to family enterprises! In Legacy Builders: Strategies for Building Successful Family Enterprises, Cory, Senior Wealth Advisor with Beacon Family Office at Assante Financial Management Ltd, dives deep to share ways for business owners, family stewards, and the rising generation in family enterprises to take control of their wealth and build a lasting legacy. Through interviews with industry experts and solo talks, each episode provides understandable and actionable strategies and insights on complete wealth management. From navigating family dynamics to developing a successful wealth transition plan and everything in between, this is the podcast to bring your legacy into the future. Subscribe today!

Contact Cory Gagnon | Beacon Family Office at Assante Financial Management Ltd. 

• Website: BeaconFamilyOffice.com
• LinkedIn: Cory Gagnon
• Linkedin: Beacon Family Office
• Email: beaconfamilyoffice@assante.com