Australias COVID Elimination Strategy Has Failed

What’s the best thing about Australia? It’s far from everywhere.
What’s the worst thing about Australia? It’s far from everywhere.
Isolated & strong borders, reversed seasons. In the world of COVID, these would appear to be a blessing.

When COVID first emerged, the cold winter in the northern hemisphere contributed to its rapid spread. In Australia, the warmer climate helped reduce the spread, and together with border control and quarantine, we were largely able to get things under control. The Prime Minister and State Premiers insisted that our strategy was one of “suppression”, and if “elimination” happened, that would be a bonus. But as daily case numbers dwindled to single digits or teens in several states, the lockdowns continued. They said suppression but their policies screamed elimination.

After some months (and in Victoria, many months), the end result was that we did achieve elimination or “COVID-normal”. But no government official ever acknowledged that this was the intent from the start. Other than restrictions on travel in and out of the country, life returned to something resembling normal. Restaurants were open, and sports stadia bristled with fans.

But beneath the surface, there were serious problems.

Cracks in the federation continued to be revealed. Small outbreaks in cities would lead to border closures between states, and state parochialism and rivalry increased. Disparities in the policies and effectiveness of the states’ public health systems became apparent. Victoria’s was shown up to be nothing short of disastrous, and we are now coming out of our fourth lockdown, the most recent for two weeks. The last two lockdowns were called “circuit breakers” by a state government that continues to use language of fear, has lost the trust of many, and where the Chief Health Officer talks like a politician rather than a medical professional.

The federal government took a “wait and see” approach on vaccination. They placed a huge bet on AstraZenica (which could be manufactured locally thus supporting industry and solving supply chain challenges) which backfired as a mix of fear over blood clots and politicisation of the vaccination within UK/EU led to problems with both demand and supply. They have increased supplies of Pfizer and done a deal with Moderna, but the program is still running way behind schedule. There are evident flaws in the vaccination program itself – priority was given to the elderly and their carers, and those at medical risk, but certain classes of workers such as food delivery staff who travelled around cities extensively and therefore had the potential to spread COVID easily were ignored. They have been very slow to adapt and tinker with the program and be more strategic about prioritising to reduce spread.

In the past six months, state Premiers had twice proven a simple formula: lock your borders and your population and win an election. The “Fortress Australia” policy became very popular, with over 70% support in a recent poll. Many Australians were comfortable being locked down in a big country. Government threw money at the struggling airlines to encourage domestic tourism, and figures indicated the economy was bouncing back rapidly. With a federal election to be held within ten months, there did not appear to be any incentive for the government to open things up in a hurry.

All of this has led to a typically Australian complacency – “she’ll be right, mate” in the local parlance. Between a feeling of safety within Australia and a fear of vaccination, people are not lining up for it. There has not been any government social marketing campaign to address these attitudes, nor any policy carrots or sticks that would encourage people to vaccinate. Fully vaccinated Australians need permission to leave the country and must still spend 14 days in hotel quarantine on their return.

With a policy goal of COVID-zero, COVID-normal has led to laziness in behaviour. It took Victoria over a year to implement a state-wide system for contact tracing, and people are not taking it seriously. People are not sanitizing their hands regularly as there is no perceived need. The need to protect COVID-normal at all costs (and the preference for the blunt instrument of lockdowns) has led to the 14-day lockdown of nearly 7 million people over a few dozen cases.

Consider the alternative policy approach: that governments were comfortable with a small number of cases circulating at any time and had the health system capacity and the tools to control them. In that case, citizens would be far more vigilant about contact tracing and hygiene, and would be lining up in droves to be vaccinated. Only one state – New South Wales – have had both the policy fortitude and the faith in their own systems to have struck a balance of controlling the spread and maintaining an open economy. While they did need to resort to some short lockdowns, they were highly localised.

WHO recently stated that Australia and other countries that chose elimination strategies face a “genuine dilemma” on how to open up. Israel, UK and USA are leading with vaccination take-up, and we would need much higher rates to be able to open.

While we have been largely isolated from the global devastation of COVID, we have swapped it for a domestic devastation of leadership. We don’t have a pathway to return to being part of the rest of the world, which is now further away than ever.

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Generational Labels in Family Business

The millenial impact research has illuminated a much more caring generation than generally believed, one that is complex in their depth of passion toward causes. http://www.themillennialimpact.com/about

The ongoing debate about ‘generation wars’ will never stop, but here’s an interesting take on this from Slate Magazine, which claims that research on generations is flawed.

Statements like “baby boomers are selfish” and “millennials are narcissists” abound, but where is the science to support this, it asks. While they acknowledge that times change and people do, they reject the idea that distinct generations capture and represent these changes.

The author then goes on to debunk common generational tropes, e.g. that millennials are less satisfied in their jobs, that national pride shows differences between generations, and show that statistically these are incorrect.

He goes further to suggest that we should focus more on ‘why’ groups of people are different, and stop using generational labels, in part because they reinforce a fallacious 20 year boundary.

My response: the essence of generational theory is that people are influenced by external events during their formative years. I haven’t seen anyone debunk that. What naturally follows is that groups of people who share those influences because they grew up during a similar time, will be influenced in similar ways. People are still different, and are a product of nature and nurture in different measures. It’s important to remember that.
The danger in applying these principles is that it’s very easy to put labels on people and draw hard generational boundaries. That is no different to any taxonomy – proponents of the Myers Briggs Type Indicator (MBTI) will not suggest there are exactly 16 types of people.

In addition, there are some things where generational differences are significant, and others where they are not. You are far more likely to read about sensationalist labels (selfish, narcissist) than the more meaningful ones (political beliefs).

The question really should be: how are models like this useful? The answer is that by acknowledging differences and some of the causes of difference, we are better able to bridge those differences.

Consider This: In your family, do you often apply generational labels and stereotypes? Next time you do, think a little deeper about whether the labels themselves provide any value, and instead, think about how to recognise difference as a way to build better intergenerational connections.

Original article: https://slate.com/technology/2018/04/the-evidence-behind-generations-is-lacking.html

[reposted with permission]

Actionable Generational Wealth Succession

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

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Transition of Trusted Adviser Relationships

The rising generation stands to inherit significant wealth, and families are spending much effort and expense to ensure that they are well prepared to become effective custodians of that wealth. However, it’s important for families to also consider the services required to help manage that wealth: advisors.

In any family, at some point in time, the wealth will shift from one generation to another. When someone inherits wealth, it becomes ‘theirs’. This contrasts with advisor relationships which ‘belonged’ to their parents, and can be much harder to fully transition. Many advisors are older and cannot connect to younger heirs. On the other side of that equation, some wealth inheritors are uncomfortable dealing with someone who was their parents’ advisor for many years, and want a fresh start to help them individuate and put their stamp on things.

The advisor community is well aware of this impending wealth transition, and are developing their own strategies to deal with it. Some have developed their own succession plans, or are selling out to larger firms. Like their clients, they too need education in shifting generational trends and how to build deeper and multigenerational connections to their client families to reduce the risk of losing the family’s business when the wealth transitions.

Consider This: Have you reviewed the relationships between your family and its trusted advisors (lawyers, accountants, wealth managers, family advisors)? Have you had 3-way discussions (two gens of family + advisors) to consider the impact of wealth transition in the advisor relationship context?

Original articles: 

https://www.ftadviser.com/investments/2019/09/26/advisers-risk-becoming-out-of-touch-with-next-generation/

https://www.forbes.com/sites/forbesfinancecouncil/2019/10/16/five-reasons-advisor-succession-plans-fail/#736cad5866a9

https://www.nytimes.com/2019/09/13/your-money/wealth-advisers-mergers-clients.html

https://www.wealthprofessional.ca/the-frontline/should-succession-planning-be-regulated-305962.aspx

[Reprinted with permission]

Actionable Generational Wealth Succession

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

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Social Media & Society for Intergenerational Targets

What have you noticed about the difference between the way you and other generations (up or down) use social media?

I stumbled across a wonderful article that deals with the intersection of two of my favourite topics: intergenerational issues and the impact of social media on society. It analyses the starkly different ways that Facebook is used by Baby Boomers, as opposed to Millenials. It comes from a web site called The Cheat Sheet, which is “dedicated to providing audiences the information they want in an approachable, entertaining way”. But looking at the content and the presentation, it looks much more like advertising-ridden viral click bait (which it probably is). While I might be old fashioned, to me the term “cheat sheet” brings to mind a memory aid concise enough to sneak into an exam. Because the actual content of the article is so good, I’m reproducing it here in a true “cheat sheet” form!

Baby Boomers Millennials
Connect with old friends Make new friends
Value family connections Prefer to not have family connections
Tend to overshare Share the highlights of their lives
Do not use Facebook as their sole news source Use Facebook as their primary news source
More likely to fall for scams Less likely to fall for scams
Use Facebook to rekindle old flames Use Tinder and other sites to kindle new flames
Use Facebook to bookmark sites Use the browser’s bookmark to keep track

So now that you have a real cheat sheet, let’s talk about what it means. There are some interesting themes here.

Friendship & Family: Boomers have accumulated plenty of friends already, and have had their share of relationships. So their approach is to reconnect rather than expand their network. Millennials are at a stage in life where they are expanding their personal networks and are less interested in family relationships. When I joined Facebook, there was a group (remember groups?) doing the rounds called “OMG my Mom’s on Facebook” as the young people expressed shock at the idea of their mothers invading their social media world. It seemed funny to me at the time, until a few years later when my mother (who was around 80) joined!

Media: For Boomers, social media augments traditional media – they get news from both. For Millennials, social media supercedes traditional media, so their newsfeed is their source of news. This is actually very significant, because it enhances the ‘echo chamber’ effect of social media (as users just see what their friends like and share) , and further erodes the value of online news sources, which are becoming less financially viable.

Technology: Millennials are far more tech savvy than Boomers, so understand the specific use of other platforms like Tinder, and other tools like browsers. They also know how to spot a scam a mile off.

Actionable Generational Wealth Succession

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

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Entitlement and Other Diseases of the Wealthy

Consider This: How do you explain your family wealth to young children? At what do you start this process? How do you say ‘no’ to them and place limits on their spending when they reply “but we can afford it”?

Affluenza and entitle-itis are some of the newest ‘diseases’ that afflict the wealthy, and of course there is always the ubiquitous ‘privilege’ that almost everyone is now obliged to check.

In her book Uneasy Street: The Anxieties of Affluence, Rachel Sherman, associate professor of sociology, has interviewed 50 affluent parents in and around NYC to understand the challenges they face raising children with wealth.

They are somewhat torn between stigma of wealth and the competitive environment in which they live. Attitudes to wealth have changed, and while parents want to give their children the opportunities that come with wealth, they still want to keep them ‘normal’ and able to mix comfortably in (and be accepted by) broad social circles.

As much as ‘tough love’ is needed to limit spoiling, it’s also essential to teach children to be comfortable with wealth, and to appreciate what it brings to their lives. Take it, but don’t take it for granted.

Original article: https://aeon.co/ideas/how-new-yorks-wealthy-parents-try-to-raise-unentitled-kids, http://press.princeton.edu/titles/11096.html (the book)

[Reposted with permission]

Actionable Generational Wealth Succession

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

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Are Generation Wars Political or Social?

I think the notion of generational wars is a perpetual myth (or perhaps a perpetual truth). Every generation has certain influences which drive their attitudes (political & social) and thus the policies enacted by their leaders. It’s very easy to point cross-generational fingers of blame, but very hard to sit in the other-generational seat and play judge.

Have the Baby Boomers ruined the US economy (and the world) for the Millenials? That’s what Bruce Gibney asserts in his book A Generation of Sociopaths: How the Baby Boomers Betrayed America. Gibney lays blame on the Boomers that have controlled Congress for decades for the huge increase in the debt-to-GDP ratio, the under-investment in infrastructure, and inaction on climate change. He claims that it all stems from their lack of investment in the future.

UK academic Dr Beverley Searle agrees somewhat, stating that the blame sits with politicians’ funding decisions which makes the welfare state unsustainable, but deflects the notion of blaming Boomers for the benefits they enjoyed.

Further, I think Gibney is using the Boomers and Millennials labels as proxies for conservatives and progressives. The policy approaches of Boomers that he condemns are conservative policies, and he is a progressive. He might be better off calling a spade a spade rather than masking a political argument as an intergenerational one.

The Pew Research Center’s March report “The Generation Gap in American Politics” makes for interesting reading. While it shows younger people being more progressive, it doesn’t explore whether there are generational drivers and what they might be.

Consider This: In your family, are the older generations more politically conservative than the younger ones? To what extent are their differences driven by generational influences rather than politics?

Original articles: https://www.vox.com/2017/12/20/16772670/baby-boomers-millennials-congress-debt, Gibney’s book https://www.hachettebookgroup.com/titles/bruce-cannon-gibney/a-generation-of-sociopaths/9780316395809/, https://www.scotsman.com/news/attacks-on-greedy-baby-boomers-are-unjustified-says-academic-1-4686858, Pew Report http://www.people-press.org/2018/03/01/the-generation-gap-in-american-politics/

[re-posted with permission]

Actionable Generational Wealth Succession: For more in-depth, thought-provoking discussion points and commentary on family and business, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #successionplanning #workfromhome #governance #leadershipdevelopment #familybusiness #entrepreneurship

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To Sell or Pass On? Family Business Strategy

As The Economist magazine poignantly wrote: “Inheritance is a process, not an event”.

According to Australian research, family businesses are ill prepared for succession planning, appointing a new CEO, or even a strategy for the future of the business.

The first consideration is whether anyone in the family even wants to take over the business – plenty of children have no interest. Then, decide if the current owner(s) want to hand it over. Any successful transition needs both of those things at the outset.

It might be better to either sell the business, or allowing a committed employee to take over rather than a disinterested and reluctant heir. If both generations are indeed willing, then significant planning is needed.

Articulating the long-term vision for the business, ensuring that younger family members are part of the process and have time to establish themselves as owner-managers within the business, and being ready to truly step away and allow the next generation autonomy to make changes are all essential.

Consider This: When did you start thinking about succession in your family business? If it was when your children became adults, is that 20 years too late? Original article: https://www.modoras.com/

Actionable Generational Wealth Succession

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #successionplanning #workfromhome #governance #leadershipdevelopment #familybusiness #entrepreneurship

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Ownership & Management of Family Business

Family is (hopefully) for life. If the family business starts to interfere negatively with the relationships in the family, then there is imbalance. Family businesses are challenging because of the overlapping of family, business and ownership (known as the “three circle model”). Researchers from Harvard have extended this into four “rooms” by adding in the board room.

Because family members wear multiple hats, are in multiple circles, or sit in multiple rooms, they need an awareness of how those roles influence the decisions they need to make. Father or boss? Director or cousin? Manager or owner?

It’s most important to be able to have open and trusting conversations about needs of the business and expectations of the family. Those are underpinned by the core values and the common values across both personal and professional life. Each successive generation should ask why they are in the business. Successful family businesses foster a sense of stewardship among all members of the family (no matter what their specific roles).

Making multiple roles work requires setting boundaries between work time and family space. Conflict will happen, so rather than “fake harmony” (see previous article), the ability to communicate, deal with issues, and have “constructive conflict” is essential.

Some kind of a conscious separation of ownership and management is very helpful. Avoid having “too many chefs in the kitchen”. Family members who work in the business should be recruited and evaluated with the same criteria as anyone else. And “don’t hire whom you can’t fire”.

Consider This: Do family members involved in your family business understand the different hats they wear? Have you ever had to performance manage a family member employee? Do you have the governance structures to deal with conflict?

Original articles: https://www.forbes.com/sites/forbescoachescouncil/2021/04/22/how-to-balance-a-family-business-with-family-values-13-tips/?sh=1e3380cc11c7, https://www.country-guide.ca/guide-life/family-business-handbook-how-to-build-and-sustain-a-successful-enduring-enterprise/, https://www.businessobserverfl.com/article/five-steps-every-family-business-should-take-for-a-successful-succession, https://economictimes.indiatimes.com/news/company/corporate-trends/how-can-family-businesses-keep-themselves-from-splitting-by-separating-ownership-and-management/articleshow/81427776.cms, https://www.jdsupra.com/legalnews/defining-and-documenting-roles-in-a-1032865/

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #successionplanning #workfromhome #governance #leadershipdevelopment #familybusiness #entrepreneurship

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Wealth & Happiness

Q: If the world’s two richest men cannot keep their wives happy, what hope do we have?

A: No, that’s not a real question – it’s a meme that circulated following the news of the divorce of Bill & Melinda Gates. Many people with wealth realise that money can’t make a wife (or anyone) happy, but that doesn’t stop them trying.

In business, sometimes we decide to “throwing money at a problem”. That means directing significant resources (financial and otherwise) towards solving the problem.

In families, throwing money at a problem is taken more literally – directing liquidity to placate unhappy family members. The assumption is that it will “smooth things over”, but because it uses money as a proxy for the underlying problem, it doesn’t address the underlying problem.

The best this response can hope to achieve is to kick the problem down the road, i.e. defer dealing with it or pretend it doesn’t exist. However, consider that (a) the problem is not solved, and (b) in the meantime, the underlying family issues can continue to fester and can actually become worse.

Consider This: Have you “thrown money” at a difficult family situation? Why? What did you expect to happen as a result? What actually happened?

Actionable Generational Wealth Succession 

For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

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An Inheritance Boom is Coming

Increasing life expectancies have meant that for the first time in history, four generations are alive at the same time. This has important implications for the timing of the transition of family wealth.

There is an ‘inheritance boom’ coming when the Millennial generation inherit the wealth of the Baby Boomer generation, but this is expected to peak in 2035 when the average Millennial has already passed the age of 60!

Some wealth originators shudder at the idea of passing over the reins while they are still alive, having seen other children squander their family’s wealth. While there is always a risk that the next generation will blow it, the previous generation can reasonably argue that they don’t want to be around if/when that happens.

But is it reasonable to make the next generation wait that long? Granted, they will likely have many years to enjoy the wealth (and the control of the wealth), but holding back can create resentment and can be considered condescending and patronising.

Consider This: At what age do you think your children should inherit significant family assets? To what extent is that driven by your own experience? Whatever the age, what are you doing to prepare them for that eventuality?

Original article: https://www.moneywise.co.uk/news/2018-01-02/millennials-set-inheritance-boom-when-they-turn-61

Actionable Generational Wealth Succession
For more in-depth, thought-provoking discussion points and further commentary on family and business conflict resolution, access my Familosophy newsletter archives: www.transitionbook.co/member-area/

#familyoffice #wealthmanagement #conflictresolution #strategicmanagement #successionplanning #workfromhome #governance #leadershipdevelopment #familybusiness #entrepreneurship

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