The ‘business is business’ mindset can be a problem in a family enterprise. The family dynamics factor in a family business is strength and a weakness, an opportunity and a threat. Six best practices are proposed.
Conflict in a family business is normal. But it needs to be addressed and managed before it is allowed to dominate poor governance and ultimately destroy the business. The conflict paradigm is one protocol that works well with many work groups.
The accounting function of a business should measure more than profit and equity once a year. It should provide a service for management to help determine how money was made and how equity can be increased.
One of our most common catch phrases these days is, “It’s not personal.” I’m not sure what that means, or where it came from? It seems to be some action taken by someone else that clearly affects your life, but you aren’t supposed to take it personally. Anything that affects your life is very personal. […]
The recent sale of two southeast Michigan iconic family businesses to large national companies brings up a great topic: Should you keep or sell the family business? Hiller’s Markets on the west side of Metro Detroit recently sold its boutique chain of seven markets to the largest grocery market chain in the country – Kroger. […]
Family business research is scarce at best. So when new data comes out, it is always good to see how your family enterprise compares. It’s not that there is a right or wrong, but there is research that suggests “best practices” for family firms. We will look at more on that a bit later. First, […]
Have you ever wondered how succession looks through the eyes of the successor(s)? Plenty has been written about “how to” for the exiting seniors, but little has been said about how this looks and feels from the next generation in a family enterprise. Here are 5 best practices to mitigate conflict and smooth the way for the next generation.
Sibling rivalries can leave families ruined and businesses destroyed. To avoid sibling rivalry overdose, families and businesses need to establish “best practices.”
Regardless of how your business was formed, or what your family system looks like, the family dynamics, culture, traditions and collective personality will permeate the business. As a family business you should embrace that and make the family and the company better because of the relationship. You will best do that by having the necessary discussions around both the kitchen and board tables to forge the right connection. Having those conversations will eliminate future conflicts and add tremendous good will to your balance sheet.
Some see the family business as a golden goose whose eggs they harvest and pawn, but want to take no responsibility for the health of the goose. Here’s how to develop good practices and maintain family harmony while working together toward common goals.