Another cultural facet of FOB’s is ‘Entrepreneurial DNA’. The ‘owner-attitude’ is appreciated (within reason), and work-life boundaries are blurred. As we saw in our last article,⁴ an owner wants you to ‘love the machine like they do.’ More than merely tolerating the demands of a family-owned business, a good advisor will thrive on them. 

“I really like to work with families,” says this Amrop Partner, Why? The answer lies in the cultural facet of ‘Deep Determination’ — space given to debating, reflection, planning and testing, with conservative risk management and investment. “It’s not political, having to please XYZ.” She relishes the decision-making process — the deep questioning and desire for a durable outcome. 

For an Amrop Partner who has worked with family-owned business for twenty years, the passion is personal. “We are a family business ourselves. As a second-generation owner I give my clients comfort that I’ll understand them and that I’m not just a commercial machine. It’s a fascinating service that we offer, but you have to understand the nuances and differences of an FOB.” 

‘Stable Homogeneity’ is another cultural facet of family-owned businesses identified by Amrop: solid engineering and a longstanding purpose, with a preference for like-minded people. Evolution more than revolution. “As an advisor, you must play into the ground principles that govern the way the family makes decisions. And any incoming leader must at least observe and to some extent share the values,” says this Amrop Partner. 

A leadership advisory firm should be just as purpose-driven as their family client. For example, Amrop’s mission is to secure sustainable performance through inspiring leadership. It means ruling out transactional relationships. “There’s no purpose or satisfaction in doing business that way,” says one Amrop Partner. “No contribution to society or industry. Our model is simple: to help good family-owned business become great. And to help great family-owned businesses last.”  

An advisor’s exposure to their inner workings is only one reason why a family-business deserves a counselor with their best interests at heart. This chimes with the cultural facet of ‘Expectant Caring.’  

“If you hunt for the next piece of revenue, you’re doing it wrong,” says one Amrop Partner. It is a serious mistake to accept assignments that primarily serve the advisor’s financial interests “because suddenly it becomes a transactional relationship. And then you are two steps down from the advisory role.” 

“Differentiation means being truly ethical, conscientious, and honest. If a candidate isn’t right, we say so,” says this Amrop Partner. Another was asked to hire several board members. Based on his knowledge of the family business, he advised against it. “You have a problem in your leadership team. Here is your 3D scan.” Instead, he helped the firm to revitalize its C-suite team. Advisors must take the time to define what the FOB truly needs, rather than pushing for a quick win. “We spend the bulk of the kick-off meeting advising not to rush a decision,” says an Amrop Partner.   

Trusted advisorship requires credibility and gravitas — earning the right to challenge. “You have to tell the family things they don’t want to hear in a constructive way,” says this Amrop Partner. “You need experience to engage members and work together without feelings of insecurity. To support and make it clear that the solution is the optimal one.” 

Another Amrop Partner relates a refreshingly frank conversation with a senior founder regarding a sluggish succession process. “You need to put your neck on the line, ensuring Mr. X retires in two years whether you have a successor or not.” Convenient as it may seem to maintain the status quo, she suspected that the incumbent would ensure that a successor never transpired. “So, you are creating a quagmire for yourself,” she warned.  

A 360⁰ perspective underpins trusted advisorship. Curiosity should be a character trait and a core value. But key family stakeholders must step up to the plate. It is equally vital for them to be transparent about the critical issues in play, no matter how delicate. From the complexities of succession to governance problems, they must share the full story if a robust and well-informed solution is to be designed.  

Context is also about inter-connectedness. Integrating the three layers of a leadership team, for example. Capturing a panoramic view (and health check) starts on day one. “To really understand the business, its structure, values and culture. To analyze the problem and see the parameters. Only then can we engineer the solution.” Addressing the complex needs of an FOB takes experience and maturity. This is no testing ground for rookie consultants. “I have an overall knowledge and clients get comfort in having me in meetings,” says one Amrop Partner. “And on the final outcome I can absorb the team’s work and market insights.”  

Contextual understanding and forward thinking go hand in hand. Regarding governance and board building, for example. When hiring a senior finance executive, the Amrop Partner may invite the family to consider whether the candidate could also help build an audit committee. “The discussions are integrated and intertwined.” Succession is one of the most difficult questions of all. “As advisors it is critical to win the trust from family-owned companies and help them realize that preparing this is the most important task,” says another Amrop Partner. 

Curiosity also stimulates a healthy learning appetite. This matters, because leadership advisors must give an FOB access to an ever-fresh knowledge base. Fascination and passion help: “We try to understand how these businesses are sustained and why they are more successful,” says this Amrop Partner. “So, we can quickly have a meaningful conversation about the crux, rather than starting from ABC.” Another sees herself as a student. “I learn through all the work our teams are doing. And if a large organization is shifting, you’ll consistently research and seek to understand in conversations with people what these changes mean. How has the structure changed? What is its impact?”