How Family Enterprise Responds During Crisis

The role of resilience in the response of families to crisis (with a COVID lens but applicable to any such situation). How shared values are the foundation of a strong capacity to respond.

1. Family Resilience During Crisis David Werdiger April 2021

2. What I will do Challenge Inform Inspire

3. Resilience “I get knocked down, but I get up again / You are never gonna keep me down” – Tubthumping ( Chumbawamba , 1997)

4. What we will discuss Background & Context Ingredients for resilience Case studies – crisis and family governance Building strong foundations Take aways

5. What we will discuss Background & Context Ingredients for resilience Case studies – crisis and family governance Building strong foundations Take aways

6. A Unique perspective ... 2G family member Advisor / Author / Speaker / Academic Philanthropy & Non Profit Tech Entrepreneur Family Office

7. What we will discuss Background & Context Ingredients for resilience Case studies – crisis and family governance Building strong foundations Take aways

8. Ingredients of Resilience Not avoiding stress and setbacks Applying inner strength Engaging support networks Personal vs group resilience

9. What we will discuss Background & Context Ingredients for resilience Case studies – crisis and family governance Building strong foundations Take aways

10. Case Study 1 - Expectations “Everybody has a plan until they get punched in the mouth.” – Mike Tyson, 2012

11. Case Study 1 - Expectations Two families: 3Gs in their 40s are current leaders Family A: operating business Family B: passive investments Both received COVID-19 financial hits

12. Case Study 1 - Expectations Family A Emotional support from 1G Family meeting framing Family B Support from 2G and also rumblings Bitterness at the family board table

13. Case Study 2 – Values “It’s tough to be strategic when your pants are on fire” – Ron Kifer , VP of Global IT, Hewlett-Packard, 2013

14. Case Study 2 – Family Values Non-family CEO took decisive steps under COVID-19 Discomfort for family members No articulation of family values Gap in policy and delegation to management

15. Case Study 3 – Personal Crisis “A problem shared is a problem halved.” ― proverb

16. Case Study 3 – Personal Crisis Family operating business with 6 family members – 2G & 3G 2G family CEO fell ill with COVID-19 Operating business board – emergency plan Family council in parallel – physical & emotional support Neither underprepared nor overprepared

17. What we will discuss Background & Context Ingredients for resilience Case studies – crisis and family governance Building strong foundations Take aways

18. Building Strong Foundations “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” – Sun Tzu

19. Building Strong Foundations Impact of COVID-19 felt in certain areas Reverbs through the family system Resilience depends on strength of foundation

20. Building Strong Foundations

21. Building Strong Foundations Response to resilience is tactical Foundations of governance & shared values are strategic Bad news: can’t build those foundations overnight Good news: if built well, they work

22. Reviewing the Case Studies   Case 1A Case 1B Case 2 Case 3 Shared Values Articulated and deeply embedded; expressed by leaders in times of crisis Unknown or lacking Known, but not articulated, and not reflected in policy Well articulated Governance Good Good Good Excellent: included contingency plans Resilience Held up well Cracks in the castle Under pressure Strong and robust response

23. What we will discuss Background & Context Ingredients for resilience Case studies – crisis and family governance Building strong foundations Take aways

24. Take Aways Escaping stress – sometimes impossible, rarely helpful Family governance foundations usually built by 2G+ Impact of crisis felt across family systems Governance and shared values absorb that impact

25. Thank you! Contact me: [email protected] Find out more: https://davidwerdiger.com/