Legacy (part 5)…….ya Reckon?
 | Author:
Denise Thompson
Denise Thompson |
Denise Thompson
Rancher and Columnist
Have you ever pondered Qualitative vs Quantitative Capital? Author Jay Hughes, who wrote Family Wealth: Keeping It in the Family, provides the following invaluable insight:
There are 4 qualitative forms of capital; the first is SPIRITUAL CAPITAL. This refers to a common purpose where every member of the family by affinity seeks to enhance the other's journey of happiness. The next is SOCIAL CAPITAL which touches on aspects like: Can you make really good joint decisions together over a long period of time? To make good joint decisions, there has to be INTELLECTUAL CAPITAL, meaning the family has to be a learning system where what is learned is shared. Another form of capital is THRIVING HUMAN CAPITAL which is followed by the only quantitative capital; FINANCIAL CAPITAL. Financial capital is the engine that grows the others and does not simply function as accumulated wealth.
It is critical to understand that the qualitative forms of capital must always be kept in focus above the financial capital that is meant to support them; a family that simply focuses on putting financial capital into consideration is not likely to succeed together.
Standout quotes that can be found in the book:
"The first asset a family owns is its spiritual capital; if it doesn't have it, it better develop it" - [Jay Hughes]
"If we're learning together and we're sharing what we learn, guess what? we're likely to make better joint decisions" - [Jay Hughes]
"A family that's nothing but quantitative capital is toast" - [Jay Hughes]
"You don't have entitled children and you will know how much is enough if you're concentrating on growing your qualitative capitals" - [Jay Hughes]
"The two great obstacles to adjustment for a human being are sex and money; money is the worst of all because no nice person will speak of it" - [Jay Hughes]
"Every family has ghosts" - [Jay Hughes]
"Almost always, the plan that they have for transition...is a liability" - [Jay Hughes]
One can certainly surmise that for a family business to reach an element of success and longevity, there needs to be spiritual, social, intellectual, and financial aspects woven into that family, which in turn, lays a firm foundation for thriving humans..……ya reckon?
Broadwater Conservation District will be holding a FREE workshop on March 1st from 9:30 to 3:30 at the 4-H Building. Elaine Froese will be taking us through key aspects of: Finding Fairness In Farm Transition. This workshop is definitely worth your time. I encourage you to reach out to Broadwater Conservation District (406-521-3014) (website: broadwatercd.org) to register or go to eventbrite.com and search the name of the workshop and reserve your spot. This workshop will be followed by the Annual Ag Appreciation Dinner at the Watson Event Center that evening. Be sure to get your tickets for that ever-popular event!
For the Love of Ag, From the Heart of a Western Woman.
Denise Thompson
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PhotoCredit: Denise Thompson
Image 1 Caption: In succession planning our goal should always be thriving humans, ya reckon?
Cousins, left to right (Stetson Reynolds, Myla Graveley, Rosyn and Cinch Reynolds, Circa 2017
Denise Thompson Photo
