Relationships are the sweetest part of our family business. I will never forget the very early days of moving to Wisconsin when Chelsea and I did not know anyone besides our grandparents. My grandparents always made time for us. 🙂
Picture in 2015 stopping in Osseo, WI at Norske Nook on our way home from a trip to Minnesota to visit a branch.
Back to our series on the five forms of capital.
We are making our way up the hierarchy of the forms of capital we develop intentionally or unintentionally in our family business.
So far, we’ve discussed the three most foundational forms of capital as individuals in our family system.
SPIRITUAL CAPITAL: Deep understanding of how loved we actually are. Perspective.
HUMAN CAPITAL: High character. Grit. Work ethic. Raw ingredients to be a good human.
INTELLECTUAL CAPITAL: Competency. Skills to serve the marketplace. To be useful.
What I’ve witnessed in very successful family businesses is when human capital and intellectual capital are intentionally developed, it sets the foundation for thriving relationships.
HUMAN CAPITAL + INTELLECTUAL CAPITAL = Solid foundation for relationships.
High character and high capacity to be useful lead to opportunities to serve our communities and marketplace effectively. This is the foundation for building trust: Character + Competence.
This leads us to the next form of capital:
SOCIAL CAPITAL.
Social Capital (relation to others) - Connectedness and service to and with family, operations, board, owners, community, and beyond.
When Chelsea, my wife, and I first moved to Wisconsin for me to join the family business full time, we did not know anyone but my grandparents. Chelsea and I would spend our weekends with my grandparents, shadowing them to the various events and gatherings on their calendars.
My grandfather speaking at a gala in his 90s.
By spending so much free time with my grandparents, I got to see, as a young adult, the social capital of my grandparents in action.
I got the privilege of seeing my grandparents involved in organizations throughout the state seeking to serve. This is where family businesses have the opportunity to differentiate in the marketplace significantly. I saw it and continue to see it firsthand.
We can be regenerative in our communities. We can be part of the solution rather than part of the problem.
We don’t suck profits out of a community to then ship the dollars back to New York City or Boston.
Family businesses are as strong as their communities because we’re playing the long game. We have shared fate with our communities because we have plans to be here a century from now. We’re not going to exit the community in the next couple years.
We will thrive as much as our communities are able to thrive.
Here’s the most beautiful thing about witnessing and learning from my grandparents on their investment of social capital:
Witnessing the behind-the-scenes of serving in secret. Giving in secret. Serving quietly so that the message is not about ego.
My grandparents never were hoarding their time, treasure, and talents for themselves.
They have leaned in to be part of the solution for our fallen world.
That’s social capital.
That’s different. That’s the beauty of family business at its finest.
We can make a difference.
As the Navajos would say: “We are the people we have been waiting for.”
Onward,
Matt