Welcome to the Family Ties^© e-letter brought to you by Pervin Family Business Advisors Inc.

There was so much to read to organize this issue, it's a wonder I even completed it. Articles such as Talent Dynasties provide an excellent description of the many legacies that are passed from generation to generation. The Most Elite Club provides a close-up of active philanthropy – a way to give with impact and have fun too. A few other articles explain how the interaction of social situations and mental states explain human behaviour.

On a personal note, consulting situations continue to be very complex and challenging, with ongoing results achieved along the way. Lately, the Dylan lyric, "... there's no success like failure and that failure's no success at all" gets in my head and won't leave. My collaboration with private/family foundation members [and strategic philanthropy] appears to be positively influencing a few next generation members to join the family granting process. Similarly, a few Advisory Boards are taking the plunge and embracing additional progressive and beneficial governance processes. It would be a complete life, if there was more time to ski [and knees that were younger].

In upcoming issues, the business family topics will address beneficial aspects of governance, leadership, organization, planning and relationships, to offer a few ideas. If you have a question, a great idea for inclusion in this e-letter, or if you just have some comments you would like to share with us, we want to hear from you!

Articles of Interest...

TALENT DYNASTIES
Some families pass talent and skill down the generations like monarchs pass a crown. Their reign of success is forged in a crucible of closeness and competition—and in the freedom to break away.

ISN'T IT THEIR TURN TO PICK UP THE CHECK
Money is great, if only it didn't get all tangled up with relatives. And friends. And kids. Our money & ethics advisers take your questions in their new book.

THE MOST ELITE CLUB IN THE WORLD
A Rockefeller heir is creating a new model of giving that links some of the world's wealthiest families. But how much of the Global Philanthropists Circle is style, and how much is substance?

DO-GOODER FINANCE
How a new crop of investors is helping social entrepreneurs.

THE UGLY SIDE OF MICRO-LENDING
How big Mexican banks profit as many poor borrowers get trapped in a maze of debt.

THE COUCH IN THE CORNER OFFICE
Surveying the landscape of the CEO psyche. Sometimes CEOs need an understanding ear -- but they worry that confiding in a colleague isn't safe or smart.

TURNING AN ILLNESS INTO AN ASSET
Diagnosed with attention-deficit disorder, an entrepreneur learns to harness his restlessness and redirect it into creativity.

PROTECTING COMPANY SECRETS
More business owners are forcing their new hires to sign non-competes. Should you?

BORED?
Don't blame your job, the traffic or your mindless chores. Battling boredom, researchers say, means finding focus, living in the moment and having something to live for.

ENHANCING BOARD PERFORMANCE
Giving your directors better information is one of the easiest ways to boost their effectiveness.

SEE NO EVIL: WHEN WE OVERLOOK OTHER PEOPLE'S UNETHICAL BEHAVIOR
Even good people sometimes act unethically without their own awareness. This paper explores psychological processes as they affect the ethical perception of others' behavior, and concludes with implications for organizations.

A BLUEPRINT FOR STRATEGIC LEADERSHIP
How to build an organization in which executives will flourish.

Families in the News...

THE BERETTA FAMILY'S SPORTING LIFE
After 475 years in the gun business, the Beretta clan has mastered the high-end collectible market -- lock, stock and barrel.

DELAYED JUSTICE MARTIN TANKLEFF
After 17 years in prison, Martin Tankleff has been set free and will not face a retrial for the 1988 murders of his parents.

AN OLD HAND IN A STRANGE NEW WORLD
In the heat of the private equity boom, the octogenarian audio pioneer Sidney Harman agreed to sell his company to KKR and Goldman Sachs. Then they ditched him. Now he has a stock worth one-third of what it was. A tale from the dark side.

GUCCI GROUP: THE ICE CREAM MAN COMETH
Ridiculed as an ice cream salesman when he took the reins of the Gucci Group in 2004, Robert Polet is proving that a fat bottom line is the ultimate fashion statement.

FAMILY-RUN AURORA SAYS YES TO ROGERS
When a company has been family-owned for 43 years, selling it can be an agonizing decision.

MELINDA GATES GOES PUBLIC
About living with Bill, working with Warren Buffett, and giving away their billions.

Additional Stuff...

First, a very kool bike ... the Dahon Curve SL

Sometimes ... someone else says exactly what you would say ... In the Winter 2008 issue of Family Business Magazine, Greg McCann offers some tips on cultivating ownership in the next generation of your business family:

1. Communicate your family and business values, your company vision and other relevant information to your next generation. You want to cultivate a sense of stewardship, not consumerism or entitlement.
2. Insist that your next-generation members develop a clear sense of who they are.
3. General development: Your next-generation members should pursue relevant education, training and experience. They should understand that they must develop their credibility and marketability, create options for themselves and develop themselves by testing their mettle.
4. Owner development: Do they know how to read a financial statement? Can they articulate the role of a board of directors? Do they understand the relationship between the owners or the board and the family? Between the board and management?
5. Consider a long-term development plan. What would you as a parent and a business owner like to see on the resume of your next generation in order for them to earn some of the rights, responsibilities and privileges of ownership?

Next ... Getting Duped: How the Media Messes with Your Mind
Statements made in the media can surreptitiously plant distortions in the minds of millions. Learning to recognize two commonly used fallacies can help you separate fact from fiction.

And, some updates, Aron Pervin has joined the Family Business Steering Committee of STEP (Society of Trust and Estate Practitioners) and is serving his second term as a Director on the FFI Ontario Chapter Board. He is also a director of the Governing Board of Friends of Progressive Education.

Finally ... A story about a gravy ladle, from my 93 year-old Mother, and you don't even have to be a mother to enjoy this one.

Michael invited his mother over for dinner. During the course of the meal, Michael's mother couldn't help but keep noticing how beautiful Michael's roommate, Stephanie, was.

Michael's mother had long been suspicious of a relationship between Michael and Stephanie, and this had only made her more curious.

Over the course of the evening, while watching the two react, Mother started to wonder if there was more between Michael and Stephanie than met the eye. Reading his mom's thoughts, Michael volunteered, "I know what you must be thinking, but I assure you Stephanie and I are just roommates."

About a week later, Stephanie came to Michael saying, "Ever since your mother came to dinner, I've been unable to find the beautiful silver gravy ladle. You don't suppose she took it, do you?"

Michael said, "Well, I doubt it, but I'll send her an email just to be sure."  So he sat down and wrote:

Dear Mother: I'm not saying that you did take the gravy ladle from the house, I'm not saying that you did not take the gravy ladle.  But the fact remains that one has been missing ever since you were here for dinner.

Love,
Michael

Several days later, Michael received a letter from his Mother that read:

Dear Son: I'm not saying that you do sleep with Stephanie, and I'm not saying that you do not sleep with Stephanie. But the fact remains that if she was sleeping in her own bed, she would have found the gravy ladle by now.

Love,
Mom

LESSON OF THE DAY... DON'T LIE TO YOUR MOTHER!!

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