PODCAST: The Science of Success for Leaders in Family Business

Recently, our co-founder Doug Gray Ph.D., joined the FFI Practitioner podcast (Listen Here) to talk about how positive psychology can help family enterprises flourish. Doug, a consultant with the Family Business Consulting Group, has extensive experience working with leaders in various sectors, including family businesses, universities, and nonprofits. The discussion explored the concept of positive psychology and its application in family enterprises.

What is Positive Psychology?

Positive Psychology is a branch of psychology that focuses on studying and understanding the strengths and positive aspects of human beings, as well as the factors that contribute to a fulfilling and meaningful life. It is a scientific approach that explores how people can thrive and be at their best. Positive psychologists aim to answer questions like "What makes life meaningful?" and "How can we promote well-being and optimal functioning?" 

The roots of positive psychology can be found in various cultures, religions, and historical philosophies. It emphasizes the pursuit of happiness and the development of human potential. Positive psychology also provides a framework for identifying and utilizing individual strengths, which can be useful in areas such as counseling, therapy, or professional coaching.

This is a relatively new field with around 25 years of research. It emerged as a response to the dominance of negative-focused research in psychology, which predominantly focused on topics such as anxiety, depression, and violence. Positive psychology, on the other hand, seeks to understand what contributes to human flourishing and well-being. It invites us to explore what is truly important in life and how we can design our lives to promote positive experiences.

How Does Positive Psychology Relate to Family Business? 

Family businesses provide an ideal context for studying positive psychology and its impact, and the emergence of family business consulting as a field coincided with the rise of positive psychology. Early leaders in family business consulting, such as those affiliated with the Family Firm Institute, recognized the importance of factors like durable social harmony for fostering flourishing family enterprises.

To delve deeper into the application of positive psychology in family enterprises, we can use the PERMA model. This model represents five clusters of research that contribute to well-being and flourishing: positive emotions, engagement, relationships, meaning, and accomplishment. By exploring these clusters, individuals and families can identify areas for growth and create conditions that promote flourishing within their family businesses.

How Can We Implement Positive Psychology?

Assess Next Gen™ provides a practical framework for implementing positive psychology principles. This assessment tool focuses on behaviors rather than personality traits. It enables individuals to determine the specific behaviors they need to adopt to thrive within the family enterprise. The process involves soliciting feedback from seven different groups of raters, including family members, friends, colleagues, and advisors. The feedback is both quantitative and qualitative, providing a comprehensive understanding of the individual's strengths and areas for improvement.

One of the significant benefits of the Assess Next Gen™ process is the opportunity for open communication and empowerment. Rather than being seen as a tool for fixing individual weaknesses, the assessment is approached as a means of enhancing the entire family enterprise. The insights gained from the assessment empower individuals to make targeted changes and drive the organization toward growth.

Advisors play a crucial role in supporting the implementation of the assessment process. For those new to the process, it can serve as a valuable tool to deepen their engagement with family systems. Family offices, wealth advisors, estate law firms, and diversity, equity, and inclusion initiatives can all benefit from incorporating this assessment into their practices.

Positive psychology offers a wealth of knowledge and data that can be translated into actionable strategies for family enterprises. Ongoing research and data collection to refine and enhance the field's understanding of flourishing is crucial. By leveraging positive psychology principles and assessment tools like Assess Next Gen™, family enterprises can create environments that foster growth, resilience, and well-being.

To learn more about positive psychology in family enterprises and our process, visit www.assessnextgen.com.