When the family friend of Dustin Hoffman’s character in the 1960s film The Graduate took the young man aside to offer him career advice, he had just one word of advice for the young man: “Plastics.”  If there were to be one word I’d offer leaders of family businesses today, it would be “Neuroplastics,” for the discovery of the plasticity of the human brain has revolutionized not only modern neuroscience, but also leadership science.

Breakthroughs in understanding the plasticity, or changeability, of our brains shed new light on how the human brain functions and how our minds actually influence our brains, behaviors and important relationships. These exciting discoveries offer pearls of wisdom for leaders of family enterprises—new approaches for leading change, inspiring and motivating others, and adapting to new circumstances.

Contrary to former understandings of brain development as being “fixed” by adulthood, we now know the human brain is to some extent reshaped and restructured throughout our lifespans. Furthermore, we can and do influence the development of these new brain structures, both in ourselves and one another.

Considering the roles and functions commonly associated with effective leadership in family enterprises (such as clarifying vision and communicating clearly, inspiring change and motivating for the long haul), we see how neuroscience illuminates how we can harness the power of the brain for these tasks.

How can family leaders apply these insights?

For starters, they can recognize why change is difficult: our lower brain, or “survival brain,” dominates energy and information flow in the brain and operates outside consciousness. Its job is to maintain homeostasis (aka consistency), so it resists, and often defeats, change. Thus, wise family leaders engage proactively in safety and security signaling even as they challenge family members with new ideas or directions. They recognize the need to clarify intentions, offer opportunity for input and assimilation of novelty, and engage stakeholders in strategizing in order to mitigate common untoward effects of—or resistance to—change. This effectively lays down new neural networks to better manage changes as they then occur.

A “brain wise” family leader anticipates stressors and concerns before they occur, naming and defining them (activating the neocortex and building connections between this higher thinking center and the emotional and reactionary lower brain centers), providing reassurance that they are being taken seriously. This reduces the likelihood of defensive, fear-driven responses to challenges. They model calm while engaging executive functions of the higher brain centers, via engaging others in talking, problem-solving, and scenario planning. They find ways to employ humor and show empathy in order to down-regulate emotional charge and build safety.

Read more in the Whitepaper:
Mindful Family Leadership: Harnessing the New Brain Science
(FOX members only)

Effective family leaders recognize the neuroplastic power of harnessing positive imagery: they know they can influence results by creating a positive shared vision. They are adept at telling inspiring stories and in engaging others in possibility thinking. They involve others in envisioning desired outcomes, knowing that positive mental rehearsal functions in the brain as if one were actually doing the action (interestingly, this is exactly what Olympic divers are doing the moment before they execute a dive). This practice actively engages stakeholders’ minds in creating neural pathways that enhance their ability to execute a plan.

Neuro-informed leaders are mindful of the emotional impact of family agreements, decisions and strategies. They know brains have a “negativity bias,” constantly scanning for threats or bad news and largely ignoring sameness and positivity. Wise family leaders are not dissuaded by this habit set. They know the human brain is, as neuropsychologist Rick Hanson puts it, “like Velcro for the bad, but Teflon for the good.” So they work extra hard to focus people’s attention on what is working, what is good, so as to develop stronger neural connections to these and reduce negative reactivity. They don’t introduce risk or threat without providing rationale and working to obtain buy-in. They avoid resisting or shutting down crucial conversations, but instead invite them and create safety by exemplifying openness to diversity of thought. This “view from the balcony” approach simultaneously stimulates the right and left hemispheres of the brain, which are involved in problem-solving and in finding a sense of oneself in relation to others. It opens a more spacious quality of exploration for individuals and groups, so that patterns of habitual thinking and responding can be reshaped with new inputs.

Finally, wise family leaders concentrate their efforts on connecting ideas and people, rather than fixing or resisting people or problems when they arise. This leadership style, rooted in modern “interpersonal neurobiology,” is particularly effective within a family enterprise, where relationships and connections matter even more, perhaps, than anywhere else.