How to develop yourself as a supportive owner

You do not need an MBA or finance degree to be a supportive owner. But, you do need to build your skills and knowledge base in the ownership arena. 

The good news is that there are a variety of ways to learn what you need to learn as a supportive owner. It’s up to you to be proactive and design the learning journey that works best for you. 

If you are still in school (or planning to start/return), there are plenty of undergraduate and graduate courses that can help you build your knowledge of business organizations, operations, and functions. 

For example, keep an eye out for classes related to corporate finance, accounting, leadership, management and operations, entrepreneurship, law, organizational psychology, negotiation, and communications. These classes can help you build a basic understanding of how businesses, in general, are organized, led, and run. 

Even though you won’t necessarily be running the operations of your family business, having familiarity with how it is done, is valuable as an owner, so you can appreciate what management is doing for the owners.

If you are no longer a student or are looking for learning outside of the traditional classroom setting, attend industry-focused conferences or association meetings and business networking events to stay current about your sector. 

Participate in strategic-level executive programs at a university for a deep-dive into relevant business topics. In addition, you can find free and paid virtual learning videos online on many business and personal finance or investing topics. 

Also, private institutions that specialize in developing owners, like the Cambridge Institute for Family Enterprise, design bespoke preparation programs for families. 

Note: there are few quality resources available that focus specifically on the unique dynamics of family-owned businesses, so look to trusted institutions and thought leaders for specialized programs, such as Citi’s annual program offerings and also the Future Family Enterprise program at MIT.

Volunteer to serve on a board, committee, or task force for an organization (for-profit or not). Make sure your role has you working on a team. You will gain familiarity with how board meetings are run, and the value of owners (or other key stakeholders) giving decisive guidance to the board.

Join open shareholder earnings calls for public companies that you invest in. You’ll get a sense for what is shared with owners and the questions that are asked.

Get involved within your family enterprise. There are many roles to fill and ways to contribute besides working in your family company or family office in a full-time job. Help plan an event, join a committee, observe a board meeting, present at the next family meeting, or see about ways to get involved in your family foundation or philanthropic efforts. 

Inquire whether the family council or active owners of your family enterprise would be willing to develop a short-term project or host a mock owners meeting to help train rising supportive owners. 

Become well versed in the history of your family and enterprise. If there are books or archives to peruse, familiarize yourself with the legacy of prior generations. 

Learn your family’s values and philosophical beliefs. Get to know the organizational and governance structures. Ask why certain decisions or investments were or weren’t made so you can understand the owners’ rationale. Be curious and ask the senior generation about the journeys of their lives, seeking to learn from their wisdom.

If there is no formal mechanism for this type of education in your family, check with the family council or family office and ask if a presentation could be offered at the next family meeting. Or invite a senior generation member to lunch to get to know them better.

Everybody who prepares for a new role benefits from outside objective guidance. Before you determine your learning journey, you need a sense of your end destination. Articulate the profile of owner you aspire to be, and then find a mentor and/or coach who you trust. 

Mentors could be family owners or board members with experience, who model the type of owner or board member behavior you are aiming for: responsible, informed, analytical, trusted, caring, unifying, inclusive, etc. They might be decades older or peers. They might be in your family or in another business family. They might be independent directors or family directors. 

An outside coach, tutor, or resource in your family office can be helpful to guide your development process as an owner and help you identify learning opportunities. Seek out people who can help you identify your own learning goals and figure out how to reach them. 

But be sure you keep your hands on the steering wheel of your own development program. Ultimately, it’s you who needs to do the work required to get yourself ready to become an owner. 

Proactively seek feedback from your mentor, coach, or others. That idea might feel uncertain or uncomfortable… what if you hear things that are critical? But, what if you hear the advice you need to learn, grow, and get to the next level? 

All too often in a family enterprise, there is an expectation that family members just know how to be a good owner or good board member. 

This is why in many family businesses, there is no formalized processes for feedback or performance reviews of family employees. This is a real missed opportunity for you as a developing owner. 

As a feedback receiver, you can drive the process and help to change your family’s culture about giving family members feedback. 

Doug Stone and Sheila Heen, professors at Harvard Law School, offer a lot of helpful advice on this topic in their book Thanks for the Feedback. One powerful question they suggest asking: What is one thing you see me doing that is getting in my own way?

Think broadly. Feedback is any information about the impact we are having on the people and world around us. 

You’ll want feedback on substantive things like, am I understanding this financial statement correctly? But, you’ll also want feedback to learn about your behavior, your interpersonal interactions, and your reputation in your family. 

For example, you might say “I want to be seen as a responsible future owner who is dedicated to seeing the company thrive. Do you see me as responsible and dedicated? Why/why not? What could I do to demonstrate better that I am responsible and dedicated?”

As alluded to in the previous section, being a supportive owner isn’t just about what you do and know, it’s also how you are seen. 

Think about how you can demonstrate your enthusiasm, support, and commitment. Volunteer. Read the material sent to you before a meeting. Show up and ask good questions. Speak up when something is unclear. 

Unify, don’t divide. Encourage and motivate others. Express that you are thinking about the collective, not just your own needs. Help others in your family understand how to be a supportive (not just a passive) owner.