Blame for this dissipation usually falls upon the laziness of the second generation or the loose life styles of the
third generation. However, because this phenomenon is so widespread, we must seek a more complete
understanding. Only then can we begin to reverse this destructive process.
We presented 9 basic principles to assist in addressing this challenge, and we will repeat them here:
I. Family or tribal wealth consists of more than financial capital
II. The primary wealth of a family or tribe is its HUMAN capital (that is, all the individuals in the tribe)
III. The family and tribe’s second greatest asset is its INTELLECTUAL capital (that is, the accumulated
knowledge of all the individual members).
IV. The primary goals of the family and tribe are to preserve itself as a whole, while supporting the pursuit of
fulfillment and happiness by each family/tribal member.
V. A system of governance is necessary to achieve their goals.
VI. Joint, inclusive decision-making is the foundation of this system of governance.
VII. This system must find a way to include all family/tribal members in decision-making.
VIII. This inclusion is part of the process of educating the younger generations, and preparing them for
responsibility.
IX. Some of this education will be provided by outside financial advisors. In addition, advisors who can
facilitate communication or serve as mentors to the younger generations will also be necessary for their long-
term maturation and development.
We then presented this case study, and a series of questions. We hope that you have answered them for
yourself; we will now supply our answers.
Fictional Case Study
third generation. However, because this phenomenon is so widespread, we must seek a more complete
understanding. Only then can we begin to reverse this destructive process.
We presented 9 basic principles to assist in addressing this challenge, and we will repeat them here:
I. Family or tribal wealth consists of more than financial capital
II. The primary wealth of a family or tribe is its HUMAN capital (that is, all the individuals in the tribe)
III. The family and tribe’s second greatest asset is its INTELLECTUAL capital (that is, the accumulated
knowledge of all the individual members).
IV. The primary goals of the family and tribe are to preserve itself as a whole, while supporting the pursuit of
fulfillment and happiness by each family/tribal member.
V. A system of governance is necessary to achieve their goals.
VI. Joint, inclusive decision-making is the foundation of this system of governance.
VII. This system must find a way to include all family/tribal members in decision-making.
VIII. This inclusion is part of the process of educating the younger generations, and preparing them for
responsibility.
IX. Some of this education will be provided by outside financial advisors. In addition, advisors who can
facilitate communication or serve as mentors to the younger generations will also be necessary for their long-
term maturation and development.
We then presented this case study, and a series of questions. We hope that you have answered them for
yourself; we will now supply our answers.
Fictional Case Study
Leadership and Values II
Building Leadership and
Values
Values
In part I of this series, we introduced the issues surrounding the
accumulation and passing on of wealth through the generations. We
discovered that fortunes are dissipated at a very high rate by the end of the
third generation.
accumulation and passing on of wealth through the generations. We
discovered that fortunes are dissipated at a very high rate by the end of the
third generation.
| Barry Graff |
 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
 | |  | |  | |  | |  | |  | |  | |  | |  |
Serving the American Liquid Waste Industry Since 2002