"Excellence is the result of caring more than others think is wise, risking more than others think is safe, dreaming more than others think is practical and expecting more than others think is possible"
Family firms are multifaceted They are complex entities, driven by a variety of factors. They comprise intricate relationships that non-family businesses do not encompass and can present challenges that interfere with otherwise acceptable and conventional strategies, processes and decisions about how a business in that particular sector should go forward and be run. For example, a family’s hopes and Vision for its future may be very different from the Vision of its family business; they may even conflict with each other. Succession planning can be another extra-loaded issue; for example an in-law within the family business (FB) management team may have a conflicting perspective on succession if s/he has an interest in his/her children taking over the business or wants those children to become shareholders. Or, there is no succession planning at all; 90% of UK FBs, have no succession plans in place.
Multiple Roles And then there is the Chief Emotional Officer (CEO)! A spouse of a founding member of a family business, often a female but not always, may carry a powerful influence within the family, a role that can easily ‘trip’ over into the business even if that person holds no legal positon within the management or shareholder group. Family member roles within a family business can wield subtle but quite considerable influence behind the scenes. And non-family members within management or as a shareholder can also add to the tensions of running a family firm.
Relationships between and within the various ‘circles’ of family businesses The potential for conflicting viewpoints is endemic and to complicate things further the known sub-groups and relationships within and between the sub-groups (family, management, and shareholders) can create even more confusion if feelings, perspectives and objectives are not clearly and openly articulated within a safe environment. Often such scenarios and ambivalent feelings are simmering beneath the surface while the business and the family, instead of competently, efficiently and harmoniously going forward, are lumbering painfully through. Relationships in these situations are highly sensitive and require skill, compassion and understanding if the members within these structures are to navigate through what can sometimes be stormy waters and function as a high performing happy family team and business.
Knowledge & Mastery The stories that abound of families and friendships which are tragically destroyed as a result of conflict within the various systems of a family business has led to the often held view that going into business with one’s family or a close friend should be avoided at all costs. This is very sad, for with today’s knowledge and advice available, many of these ‘casualties’ are avoidable and unnecessary. However, for the number of horror stories we hear, there are thousands of family businesses all over the world that are successful, fulfilling and happy.
These are families in business who either instinctively ‘know’ how to manage and ‘master’ the impact of the various complex and different structures within them, or they educate themselves about the field. They understand that each family member has a dream of their own as well as one for the business and they are able to articulate these dreams and desires without fear of reprisal. They also understand that being a family member does not have to mean following in Mum’s or Dad’s footsteps! It may mean a younger generation learning and earning their own stripes first by starting their own entrepreneurial endeavour, or in fact taking a job outside of the family business altogether.
