{"id":7158,"date":"2024-02-06T22:49:39","date_gmt":"2024-02-06T17:19:39","guid":{"rendered":"https:\/\/www.luciensandbox2.com\/soch\/?p=7158"},"modified":"2024-06-03T14:15:01","modified_gmt":"2024-06-03T08:45:01","slug":"a-lived-family-constitution","status":"publish","type":"post","link":"https:\/\/www.luciensandbox2.com\/soch\/a-lived-family-constitution\/","title":{"rendered":"A lived family constitution"},"content":{"rendered":"

A constitution that is not just on paper, but lived in head, <\/span>heart<\/span> and soul of all members of the family<\/span><\/span>\u00a0<\/span><\/h3>\n

Family business is the most prevalent and pervasive form of business through all of history, and yet only recently has the world begun to recognise the importance and distinctiveness of the family-owned firms.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

Success continuation of family businesses is not <\/span>just important<\/span> for family owning the businesses, but also for the society and nation at large.<\/span><\/p>\n

\n

For succession continuation of family businesses: A difference to think <\/span>about..<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

Last year, a multi-generational global Indian family business, say *Mehta Family shared with us that they had drafted their written constitution with their advisors in a period of a few months but were unsuccessful in implementing the same and at the same time, they were finding themselves lost since there had been no change in their family or the business with this constitution. They needed help!
\n<\/span><\/span>*For client confidentiality, the last name has been changed.<\/span><\/span><\/span><\/p>\n

Family constitution development is not the work of lawyers or accountants, with all due sincere respect. They do have a part in the process which is limited to about 5% of their contribution. The remaining 95% is where the difference is.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

Having a constitution on paper is <\/span>not the same as<\/span> living\u202fthe same\u202fwith\u202fhead, heart & soul of the family members for generations.\u00a0<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

Therefore, constitution development projects can range from a few thousand U.S. dollars to even mid-order double-digit million U.S. dollars, depending on what your goal is.\u202f<\/span><\/span>\u00a0<\/span><\/p>\n

When family stewards hear the above, after waiting in pain and worry for years and even in some cases for decades, they simply <\/span>can\u2019t<\/span> help but scream inside \u2013 Are you out of your mind? Why is the difference of price so much? What is so different? And so <\/span>on..<\/span>\u202f<\/span><\/span>\u00a0<\/span><\/p>\n

None of the above questions are unfair. It requires a good deal of understanding and <\/span>mainly clarity<\/span> of purpose and intent, to choose a path that will <\/span>determine<\/span> the next 300 years of your family business.<\/span><\/span>\u00a0<\/span><\/p>\n

Family Businesses who set out to build their constitutions may have one of these two approaches:<\/span><\/span><\/p>\n

First<\/span><\/span><\/strong>,<\/strong>\u202f a<\/span> technical approach which is a written family agreement for reference for safety<\/span><\/span>
\nSecond <\/span><\/span><\/strong>\u202fis<\/span> a head, heart & soul approach which is a written constitution -\u202fnot just for safety but to live and outgrow every day the family harmony, growth, abundance, and unity for generations.
\nThis choice of approach makes all the difference.\u202f<\/span><\/span>\u00a0<\/span>
\n<\/span><\/span><\/span><\/p>\n

\n

A lived family constitution is:<\/span><\/span><\/strong><\/p>\n