The Silo Approach

How many planners does a founder need?

It can be overwhelming to consider how many advisors are required in order to ensure that all aspects of succession planning are looked after.  While I wish I could provide a more simplified solution, it is true that many experts are needed.  Lawyers, accountants, tax advisors, insurance professionals, and family business advisors all have specialized knowledge and cannot be substituted for one another.  However, duplication, overlooked aspects, and conflicting recommendations often occur if the professionals act in isolation of one another.  This is called the Silo Approach.  When the advisors are working independently and don’t know or consider the succession wants and whys of those involved, it is not surprising that the succession statistics have not improved much over the past 25 years.

Consider a simple suggestion of where your family might like to eat for dinner.  If you were poll four young siblings, you would likely get very different answers.  One would suggest MacDonald, another prefers Dairy Queen, one votes for Chucky Cheese, while the fourth prefers eating at home so they have more time to play.

While I like to keep this blog informative, I cannot help but insert a shameless plug given the above information.  A family business advisor, such as one of the team members at PFI, can help eliminate the tragic results of the silo approach by working with your current advisors and creating a road map for the family.  We strive to maintain harmony and, drawing on my 30 years of experience, can identify where your succession plan may be lacking.