My monthly book blog: On families, feuds and finance

When it comes to family feuds,?Succession?didn’t leave much to the imagination. It was family politics raw.?

One doesn’t need to venture that far from reality to see how generations can turn on each other, and what’s at stake when they do. As the old saying goes, all families fight — just some with higher stakes.

I read two books last month about the divisions within two prominent Canadian business families, and was reminded why this matters to millions who will never step inside a boardroom.

Rogers v Rogers,?by Globe and Mail reporter Alexandra Posadski, is a deeply reported look at the fight over Ted Rogers’ legacy as his family turned on itself and the fate of his telecom and cable empire. It’s a rollicking read, and has plenty to say about the challenges of corporate governance in family companies.

The Phelan Feud,?by journalism professor and author Stephen Kimber, is an equally detailed look at a lesser known family that made its fortune through Swiss Chalet, Harvey’s and fast food in Canadian airports.?

In the 1970s, the name Phelan was once as prominent as Rogers — indeed, the family mansions were just doors apart in Toronto’s Forest Hill neighborhood. Yet just a half-century later, one of those dynasties is still active; the other has all but disappeared from public view. And in that difference lies a signal lesson about business, corporate governance and family management.

Both books show how money — and the privileges of mansions, cottages and jets — can divide siblings. But anyone who knows their Shakespeare knows money is rarely the core issue. It’s more often fuel on the flame of sibling rivalries, parental snubs and unrequited ambition, or the?lingua fractura,?the language with which family members fight.

As these sagas show, the money fights can also become much more than about family when they seep into corporate boardrooms. In turn, they speak to a core challenge in the Canadian economy, which has a disproportionate number of enterprises owned by multi-generational families.?

Family ownership has often been a strength for Canada, providing a long-term vision for management, patient capital and values-based oversight.?Family enterprises were among those that resisted the hollowing-out wave of the early 2000s, when many Canadian companies were bought by foreign firms.

But family ownership can also become a challenge, when owners and management don’t see eye to eye.?The Phelan Feud?documents such struggles within the Cara empire, when patriarch Paul James Phelan pulled back from family operations, leaving no clear plan on how to keep his family companies moving forward.

The Rogers saga also went sideways when there was no clear family plan following the death of Ted. Cue the?Succession?references, but it’s about more than who will call the shots when the founder or family leader steps aside. Good governance is about ensuring a family is as cohesive as a board of directors — aligned on the purpose of an enterprise, committed to its near- and long-term goals, and able to speak with one voice to management, employees and the outside world.

A few other observations on what makes for successful dynasties:

— they’re rooted in values, not money. Sometimes the values are connected to the inventions and creations of a family founder. Sometimes they’re rooted in the mission of the family company.?

— they know family strategies require as much work as business strategies. Strong families work together, and spend time together.?

— they usually have a strong leader in the family who serves as both glue and guidance system. Interestingly, in both books, strong matriarchs emerged in the post-war feminist era and played that role, although at times inadequately.?

Families that invest in those approaches may stand a better chance of avoiding messy fights and ugly headlines. They also may help their businesses prosper for generations, which matters well beyond the living room and boardroom.