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O ne of my most memorable SFU undergraduate classes was a course titled, "Introduction to Psychology" (a.k.a. "PSYC101"). This class has been relevant to almost everything I've done in busi- ness since that time. Which leads me to the family business. I tell clients all the time that the problem with a family business is, well, people. Then, add in family dynamics, brewing and stewing for decades, and there can be a powerful set of complicated dynam- ics that would satisfy both Shakespeare and Christopher Gaze. One of the most common aspects that gums up a transition from one genera- tion to the next, is a "sense of entitle- ment." In our society, there is a notion the we are "entitled" to particular things from certain people and institutions— the world, or at least parts of it, revolve around us. There is no shame in bleating about what one deserves, that "I need to get what's mine! I want my fair share. My expectations need to be met". We have a culture of entitlement root- ed in the psychology of people. What about the family business? We have well-meaning parents who have a busi- ness and who are thinking of passing it on to the next generation. How do they "pass" it on? Sell it? Gift it? Have they truly accounted for all of the siblings? Do they need to work in the business to own some of it? The questions are an open-ended Pandora's Box. In my experience, it is always psycho- logical dynamics that derail a transition strategy, rather than the technical as- pects of the transition. Back to PSYC101. This is not always understood. A true family succession / transition plan is a process and not an event. It takes a lot of planning and meetings to discuss and unpack people's views and understandings and then to develop a plan to move forward. A big challenge is a sense of entitlement among family members which can derail plans. Did the second generation grow up thinking that, one day all this [the family business] will be theirs? Did they think that because they were the oldest sibling that they were first in line to the throne? What about the oldest kid, a daughter, that is married, and now the son in law is the oldest male. Does this matter? Does a son in law count? The father may have said at their wedding that, "I welcome you into the family and I treat you like my own son". Well, not quite. Then, there are things implied, but not said. This is dangerous territory. "This is what I heard." "This is what I thought you meant." Parents may make an off-hand comment that then becomes embed- ded in the child's memory as a refer- ence point. Kids may think birth order is important. It may or may not be. What about the role of meritocracy? Can that upset the pecking order? What if there are several siblings, but the youngest turns out to be the most com- petent? Can junior take over the throne. Remember what happened to Joseph. Check the Bible or Donny Osmond in The Amazing Technicolor Dreamcoat—in either version, it doesn't end well. Dealing with family dynamics requires a deft touch and finesse—not decrees or royal fiats. So, recognize the necessity of dealing with a sense of entitlement. It must be acknowledged and unpacked. There are ways to deal with it. This can take a long time to undo a pattern of thought that has taken a lifetime to develop. It must be done and can be done. It's a process and not an event. A family—let alone the business—is too important to "sort it out" as you go along, for the first time. This is no time to risk your life's work. PSYC101 & THE FAMILY ENTERPRISE: BEWARE OF A SENSE OF ENTITLEMENT Richard (Rick) J. Goossen, BA(Hons), LLB, LLM, PhD, Business Development, Nicola Wealth Rick works with one of Canada's largest networks of high net worth entrepre- neurs and family / business owners, including billionaires and billion dollar enterprises. This network has been built over decades of client work, collaboration, research, lecturing and volunteering. He has written six books, translated in multiple languages, and speaks widely on the family enterprise. He teaches leadership annually in an executive education program for global business leaders at Wycliffe Hall, Uni- versity of Oxford (www.ELOOxford.com). CONTACT INFORMATION: E: rgoossen@nicolawealth.com LinkedIn.com/in/rickgoossen A DV E RT I S E M E N T "We can learn from Donny Osmond"