Success Secrets of Royalty.

by Natalie Pace.

Learn the wisdom behind a monarchy that has been around for over 1300 years.

June 5, 2012

Whether you are a Royalist or an anarchist, you have to admit that a family doesn't stay in business for 1300 years -- longer than any business ever -- without a great success system. While I was in England last week, touring some of the estates of the Duchy of Cornwall and H.R.H. Charles, the Prince of Wales, I took note of a number of the ways in which Her Majesty Queen Elizabeth II, and the Kings and Queens who have come before her, have adapted to a changing landscape over the centuries to retain their wealth and status and remain in power. The tenets below have kept the Royal Family at the top of society for centuries, while still close to the hearts of the people they "serve." Many of these strategies will serve non-Blue Bloods just as well…

10 Success Secrets of Royalty

1. It's a Family Business (Nepotism)
2. Estate Planning
3. Exalt Women. (Don't Execute Them.)
4. Evolve (at Glacier Speed)
5. Rise Above Politics
6. Patronage and Open Sourcing
7. Own Land and Diversified Assets
8. Support Business in the Community
9. Pepper Pot Social Housing
10. Receive Gifts with Gratitude

And here are some examples of these strategies in action.

1. Family Business (Nepotism) - All eyes during the Diamond Jubilee were on Her Majesty Queen Elizabeth II for doing such a wonderful job of serving her people for over 60 years. Meanwhile, H.R.H. Charles, The Prince of Wales, the heir to the throne, has been grooming himself for the day he becomes King, for the same period of time. Serving beneath his mother means that when Prince Charles makes a guff, she is there to reprimand, as well as to guide him through it. 2nd in line to the throne is The Duke of Cambridge (formerly known as Prince William), followed by Prince Harry. (Princess Diana gave birth to an "heir and a spare".)

Smart business leaders like Rupert Murdoch have attempted to incorporate The Royal Family succession plan, but with mixed results. Murdoch's eldest son, Lachlan, abdicated his seat as next in line to the News Corporation empire on July 29, 2005, after which James Murdoch stepped up as Deputy Chief Operating Officer of News Corp. (a job James has managed to hang onto despite the phone hacking scandal in the United Kingdom). If, however, the title and responsibility of heir to the empire also included the astute estate planning of the royals, Lachlan might have been less willing to give it up.

2. Estate Planning - There have been many Princes of Wales. The Heir to the British Throne assumes the name "The Prince of Wales," and also becomes The Duke of Cornwall. The Duke of Cornwall (the person) is the head of the Duchy of Cornwall possessions, entitlements and responsibilities only as long as he remains in that role. Once The Prince of Wales becomes His Majesty The King, he moves into Buckingham Palace to enjoy the perks, responsibilities and land holdings associated with that sovereign role, while the new Heir becomes the new Prince of Wales and The Duke of Cornwall. If The King abdicates the throne, as King Edward VIII did, then he gives up his privileges and his castles, along with his responsibilities, and may have to go live in France. (If he is forced out, like King Charles I, he might be beheaded.)

In this very clear estate and succession plan, as The Royal Family member takes on greater responsibility, s/he receives the governorship of greater palaces and land holdings. H.R.H. Prince Charles vows to leave the Duchy in greater shape for the Princes of Wales that follow him because his future holds even greater promise and luxury, which he can only attain by doing a great job where he is. (Looting the estate would not be tolerated). Because the privilege of enjoying the estate is based upon job performance, and not simply split up evenly among family members, the land holdings of the monarchy remain in tact, and are never squandered or sold in the family fire sale that often occurs when the leader of a business or the head of the family passes on.

3. Exalt Women. (Don't Execute Them.) - This is something that Henry VIII learned the hard way. Henry VIII was infamously ruthless in his attempts to produce a male heir. After six wives (one beheaded) and only one son, Henry VIII finally mandated in his will that The Prince of Wales (King Edward VI) would be succeeded by his elder sisters, Mary and Elizabeth. Queen Elizabeth I was one of the most successful sovereigns the world has ever known. While she was Queen, the Spanish Armada was defeated, the New World was explored, Shakespeare produced the world's most beloved plays and England prospered. Queen Elizabeth II has reigned over Great Britain (in her ceremonial, non political role) for 60 years. Both Queens came into their birthright because there was no male heir in line in front of them. The Duke and Duchess of Cambridge (William and Catherine), however, may be the first royal couple to have their firstborn, regardless of gender, as the next in line to the throne. In her 2012 speech to Parliament, The Queen announced that her government "will continue to work with the 15 other Commonwealth realms, to take forward reform of the rules governing succession to the Crown."
   
   
4. Evolve (at Glacier Speed) - The monarchy does change with the times, but much more slowly than the rest of society. Women received the right to vote in Great Britain in 1928, however, this decade marks the first time that a royal firstborn daughter might be in line to the throne before her younger brother. As another example of reformed attitudes, 2011 marked the first time that an English sovereign had set foot in Ireland for over a century -- since the revolutionary uprisings against the English Monarchy occurred in the early 1900s. Security was extremely tight and tensions were high during H.M. Queen Elizabeth II's visit with Ireland's President Mary McAleese. However, video footage of the monumental moment is now shown in Dublin Castle, and even my Irish cab driver misted up a little when he talked of The Queen speaking in Gaelic at her dinner reception and placing a wreath at the Garden of Remembrance. Perhaps it takes a century for both sides to heal from such a Bloody Sunday.
   
   
5. Rise Above Politics - According to the Royal website, "As Head of State, The Queen has to remain strictly neutral with respect to political matters." This is helpful with regard to the Monarchy's staying power, but frustrating to a sovereign who wishes to influence his people and culture. As I note in my article, "Nature's Prince," Prince Charles has more leeway as The Prince of Wales to promote sustainability and Harmony than he will as King. Queen Elizabeth II has managed to steer clear of scandal for 60 years, something she was no doubt keen to do, after watching her Uncle, the Duke of Windsor, face the political headwinds and exile he received, when, as King Edward VIII, he suggested that "something must be done" for the unemployed coal miners and dared to dream of marrying an American divorcee (Wallis Simpson). Having said that, The Queen's preferences and passions are seen clearly in The Queen Elizabeth Diamond Jubilee Trust, which is a charity created to distribute the gifts she receives during the Diamond Jubilee.
   
   
6. Patronage, Competitions and Open Sourcing - How do you stay on top of innovation, while getting a whole lot of work done for beer and pizza? By hosting competitions (an ancient tool of open sourcing) and crowning a champion. In days of yore, The King would identify his knights through jousting competitions. More recently, The Prince of Wales, as patron to The National Hedgelaying Society, hosts an annual hedgelaying competition, to promote a revolution more dear to his heart -- sustainability. Another way that royals honor superior service is through a Royal Warrant, which John Williams, the executive chef of The Ritz London holds for catering and banqueting services to The Prince of Wales.
   
   
7. Own Land and Other Collectible, Diversified Assets - Throughout the centuries, the royals have retained ownership of land, while leasing the right for residence, business and farming to others. The Royal Family also owns an extensive art collection, a collection of Royal Coaches and Cars, a portfolio of diversified investments, one-of-a-kind crowns, tiaras and jewels and more. Land ownership, art collections, awe-inspiring rare gems, gold, sculptures and valuable portraits have all been key to the preservation of wealth, power and influence in the Royal family. Instead of selling their hard assets when an increase in revenue is needed, they simply allow the public to view it for a fee. Tourists can arrange to walk through Buckingham Palace, Highgrove, the Queen's stables and an ever-changing exhibition of the Royal Art Collection, and experience many other Royal once-in-a-lifetime events. A great security team is key as well!
   
   
8. Support Business in the Community - If your tenants suffer, the land and buildings suffer as well; if the people and businesses thrive, so does the community. As the President of Business in the Community for the last 25 years, The Prince of Wales has been tireless in offering support to local entrepreneurs, as the lifeblood of the community. Business in the Community also works to promote corporate responsibility and sustainable practices in big business as well.
   
   
9. Pepper Pot Social Housing - If you ask an uninformed homeowner where the social housing should be located, chances are you'll hear, "Not in my backyard." However, the Poundbury residents that I interviewed during my tour of that village not only embraced "pepperpotting" social housing; they were proud of it. What is pepperpotting? A full integration of social housing right next door to purchased homes. The residents who move into the lower income lodging are not isolated into a ghetto, but instead live side-by-side with their more affluent neighbors in a mutually respectable co-existence. All residents must abide by the terms of the Poundbury Resident's Association, and all have a voice to speak up when/if there are any things that need redressing in the community. The result? As you wander down the pedestrian-friendly lanes, the only way you can tell a social housing building from a resident-owned structure is by the economy car parked in front. What's the most common complaint of the residents of Poundbury? That the gravel on the sidewalks is too difficult for wheelchairs and strollers… Poundbury is the creation of The Prince of Wales, along with master planner/architect Leon Kries, and the Duchy of Cornwall.
   
   
10. Receive Gifts with Gratitude - Let's face it. Few people in history have had multiple nations throw a nonstop party for four days to honor them, and even fewer have had a flawless record of 60 years on the job! The Queen's brief two-minute speech at the conclusion of the Diamond Jubilee extravaganza was centered almost entirely on giving thanks. "Prince Philip and I want to take this opportunity to offer our special thanks and appreciation to all those who have had a hand in organizing these Jubilee celebrations," she said. "It has been a massive challenge." The Queen was humbled and touched deeply to see "so many thousands of families, neighbors and friends celebrating together in such a happy atmosphere." The people waved flags, partied and rejoiced to honor Queen Elizabeth II, and took great joy in seeing their Queen beam brightly at all of the pomp, circumstance, concerts and fireworks.
    
    For 44 years, from 1954 to 1997, the United Kingdom also gave the Queen her own royal yacht, The Royal Yacht Britannia, before it was decommissioned by the Labour Government. In return, the government received the benefit of having a leading, traveling spokesperson representing the United Kingdom and Commonwealth, along with other strategic work that The Queen attended to during the Cold War. It is now on display as a tourist attraction in Edinburgh.
    
    

    Queen Elizabeth II larking on the royal yacht in 1971. Photograph: Patrick Lichfield/National Portrait Gallery.

    When Queen Elizabeth II married Prince Philip, the couple received over 2,500 wedding presents from around the world, including homespun cotton lace from Gandhi, with a central motif that read, "Jai Hind" ("Victory for India"). According to the Royal website, the gifts were put on display as part of a charity exhibition and were viewed by more than 200,000 people.

In today's more democratic society, it's unlikely that following these success strategies will result in you becoming a King or a Queen. However, these time-proven investment models, estate planning, community building competitions and celebrations can certainly allow you and the descendants who come after you to amass and keep greater wealth in the decades and centuries to come.

About Natalie Pace:
Natalie Pace is the author of You Vs. Wall Street and Put Your Money Where Your Heart Is. She is the founder and CEO of the Women’s Investment Network, LLC (a global financial news, information and education site), where she has been adding a splash of green to Wall Street and transforming lives on Main Street for more than a decade. Natalie is a blogger on HuffingtonPost.com and a repeat guest on national television and radio shows such as Good Morning America, Fox News, CNBC, ABC-TV, Forbes.com, NPR and more. As a strong believer in giving back, she has been instrumental in raising tens of millions for public schools, financial literacy, the arts and underserved women and girls worldwide. Follow her on Facebook.com/NWPace. For more information please visit NataliePace.com.