The Artifac Process

Using Artistry+Facilitation to solve “Whole of Family Business” Problems

Einstein observed that: "We cannot solve problems with the same thinking we had when we created the problems".

Einstein could have been describing Family Business problems, since they are often created by the family AND refuse to respond to conventional solutions.  

In response, we have developed the ArtiFac Process - a radically new approach to family business problem solving.  ArtiFac synthesises powerful modern business facilitation techniques and performing arts procedures to separate out the parties’ emotions, to clarify their thinking and to project them down the path towards a new future. 

Although not suited to every family, ArtiFac is the most powerful approach yet devised to address and resolve serious family business issues in the most profound and lasting way possible.  Note that these issues do not have to be negatives, based on conflict.  ArtiFac responds magnificently to challenges such as developing long term strategies and Family Constitutions.

Family Business - the 4th Dimension

Stated mathematically in "The Jungle Laws of Family Business Survival” (by Jon Kenfield - as yet unpublished), when business and family problems converge they don’t just add together – they multiply:

(Business Problems) + (Family Problems) = [(Business + Family)x Problems]

In high stress business situations including: corporatisation; managing change; corporate restructure; sale of business; succession planning; strategic planning and business planning, we often see dynamics at work in family businesses that are very different to ordinary business dynamics.   Emotions project themselves through egos, emotional traumas, communication breakdowns and other relationship problems to appear as sibling rivalry, inter-generational conflict and inter/intra-family conflict.

Then the heart and the bowel seem to dominate what may otherwise be sharp business minds and turn what should be creative and collaborative problem solving exercises with other family members into battles royal.

The Dark Side of Family Business

When families are at war, individual members are at risk on many levels – from the purely financial to the deeply emotional.  In our experience, some families mediate their way through a comprehensive conflict workout and yet, even after signing up to a legally binding agreement between family members, will then simply ignore their undertakings and obligations – even though they wouldn’t normally dream of dishonouring their commitments to other business associates, or to complete strangers.

Why is this so?

In the Shadows of the Soul

Take succession, or leadership transition, as an example.  The tension between head and heart comes to the fore.  Every sane sixty year old proprietor knows in his or her head that they have to start seriously letting go of the reins to hand over to the next generation, but many just can’t bring themselves to get off the horse.  In their hearts they feel: “If the business is my life, not being in the business will be my death”.

As a result, the burdens of responsibility and accountability for performance are passed across – without the substance of ownership – a certain recipe for the angst of unmet expectations.

The ArtiFac Response

ArtiFac is a 2nd Generation process for developing solutions for family business problems.  Developed in Australia from experience gained in hundreds of mediations, it is a world first synthesis of management, dispute resolution and performing arts techniques.  ArtiFac is designed to:

1. Improve the prospects of achieving a constructive and amicable solution for most types of family business problem and,
2. Increase the likelihood that the agreement struck and any commitments made will be honoured in the long term and,
3. Strengthen the family in profound ways as a direct result of improved communication between and appreciation of each other.

The original ArtiFac team comprises Jon Kenfield of Dispute Solutions and Julie and Stewart Campbell of Self Made.  All three work intensively with the family throughout the entire ArtiFac process.

The ArtiFac Process

The process has two main stages: Artist(ry) and Facilitation.   Although ArtiFac can be applied to most types of family business problem, we describe it here with reference to a practical example that we first ran as a pilot project to test the process: developing a Family Constitution (or Family Agreement). 

Family Constitutions are formal documents that reflect the way a family has agreed to operate and regulate its relationship with its own family members and with its family business.

Stage 1 – Preparation / Factfinding.  The process begins with a series of interviews with family members (individually or, more usually, with spouses and partners).  These meetings achieve two things: (a) ensure that the chemistry is right between family members and the ArtiFac team and, (b) gather comprehensive background information about the individuals, the family and the business so the ArtiFac team can develop a fully tailored program for the particular family.

Stage 2 – Arti(st) (1½ days).  A series of engaging, challenging and fundamentally safe performance activities designed to help individuals peel back and then move through their emotional barriers. 

With a strong emphasis on communication and "personal connection" between family members, the Arti process removes the emotional blinkers and filters that often come between family members and distort their views of reality.  Participants emerge from this process much better able to make realistic situation analyses and action plans for themselves, for their family and for the family business.

As participants progress through the program, they develop an increasing sense of congruence with the rest of the family group - sometimes for the first time in a long time.  They eventually develop a real sense of shared purpose, buoyed by optimism and gratitude for the positives in their lives that have been (re)discovered through the process.

The Arti part of the process has two objectives:

• Internally, it seeks to change each individual’s fundamental perspective of their place in life, in the family and in the business.  For some this comes as a glimpse, for others it's an epiphany, for most it’s a unique opportunity to re-establish personal balance and get the big picture back in focus. 
• Externally, the process prepares the family for open, honest and creative participation in Stage 3 of the Facilitation, where they develop a Family Constitution.

Stage 3 – Facilitation (1-2 days).  Using a tried and tested template, and helped by the responses gathered from pre-session questionnaires and/or interviews, the Facilitator (who participates in the Arti sessions to deepen his understanding of and connection with the family) helps the family to develop a comprehensive, written Family Constitution.

Developing the Constitution is both an exercise in disciplined and creative visioning for the future and a demonstration of the family’s ability and commitment to work together to develop and achieve a shared future vision.   Where things work well, the family can justifiably celebrate.  Where they don't work quite as well, the family can explore what it needs to do to achieve improvement - and then commit to do it!

By the end of the second day the Family should have a fairly complete draft of most, if not all, of their new Family Constitution.  For an indication of the typical contents of such documents, see Family Constitutions.