They can't all be failing. Conflict is normal and at times, routine. It's only when conflict is not managed in a positive way that it becomes a destructive force.
Owners and
managers of family businesses should reflect on their success. Families
that maintain successful businesses tend to approach family and business
issues with a "continuing education" attitude. Winning family businesses
demonstrate certain traits. They:
1) Have leaders who lead a balanced life-it is not all work or all play.Conflicts in any business are inevitable. It is important that owners and managers of family businesses recognize their uniqueness. Family businesses should ask the following questions. Has the family enjoyed working together? Has the business achieved its expected performance? What core values can be built upon to strengthen the business and bring the famfly closer together?
2) Communicate regularly-they have a system in place that fosters both playful and serious talk.
3) Agree on the business purpose, and have clearly defined business goals.
4) Plan, plan, plan-strategic, marketing, estate, disaster, financial, etc.
5) Share power-everyone who can add value is allowed input and not all decisions are de facto by the majority stockholder.
6) Have entrenched traditions-everyone has family traditions whether they plan them or not. Traditions can keep a family connected.
7) Have similar values-big differences in some values make it tough to ever share a common outlook.
8) Compete in more stable markets and industries-they are not into fads, fashions or trendy ideas.
9) Grow slower-rapid growth is difficult to manage.
10) Remain small to medium in size-pressures mount when a famfly business tops the $2 billion mark.
11) Have strong and capable competition-monopolies do not succeed in free markets. (Muhammad Ali is considered the greatest because he had a Frazier, Norton and Foreman to topple).
12) Exude passion for the business-these families tend to think beyond "getting rich" and emphasize the family legacy.
13) Know their customers-it's common for these businesses to have long standing personal relationships with customers, vendors and business partners.
14) Have governance-in order to grow, a company's leaders must be open to objective evaluation and feedback. A board of directors or board of advisors works wonders for a family business.
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