"The only thing to do with good advice is to pass it on. It is never of any use to oneself." – Oscar Wilde
The advisory model is comparable to a lighthouse guiding ships safely through turbulent waters, illuminating paths, revealing hidden obstacles, and steering businesses clear of potential hazards. The necessity for robust advisory competencies in family enterprises is underscored by their proven ability to support critical strategic decisions, enhance organizational effectiveness, and nurture leadership and workforce development (Poza & Daugherty, 2020).
Expert advisors tailor specialized guidance to the evolving needs of family businesses, navigating challenges like succession planning and intergenerational conflicts and fostering innovation within traditional frameworks (Gersick et al., 1997). They employ dynamic methodologies such as role-playing to resolve deep-rooted conflicts, structured mentoring programs designed to empower emerging leaders, and precise, actionable strategies to achieve targeted business objectives.
Essential advisory skills include establishing credibility, facilitating creative problem-solving, demonstrating empathy in managing interpersonal complexities, and maintaining objectivity during critical decision-making processes (Carlock & Ward, 2010). Exemplary cases that underscore the value of advisory models include the structured governance practices implemented by renowned families like the Rothschilds, conflict resolution strategies effectively employed, and developmental coaching approaches used by global businesses like IKEA to foster intergenerational alignment and sustained innovation.
Sources:
Poza, E. J., & Daugherty, M. S. (2020). Family Business (5th ed.). Cengage Learning.
Gersick, K. E., Davis, J. A., Hampton, M. M., & Lansberg, I. (1997). Generation to Generation: Life Cycles of the Family Business. Harvard Business School Press.
Carlock, R. S., & Ward, J. L. (2010). When Family Businesses are Best. Palgrave Macmillan.