Family and business can often feel like oil and water; the emotional currents of family life can clash with the rational decision-making required in business. While emotions frequently influence family decisions, business should ideally remain more objective. Here are some strategies to improve the dynamic in a family-owned business.
- Recognize Emotions When They Are High, but Transition to “Business”
In my experience facilitating meetings between family members who own small businesses, emotions can often run high, especially if spouses or siblings not actively involved in the business are present. The first step is to acknowledge these emotions so that everyone feels understood. Then, request that all parties transition to a business meeting to discuss issues in a professional manner.
- Meetings Should Include Only the Family Members Actively Engaged in the Business
It’s common for in-laws or siblings to exert influence on business decisions informally. Generally, it is prudent to keep relatives who are not directly employed by the business out of meetings. Inviting these relatives to address specific issues directly may be beneficial in special circumstances.
- Ask a Non-Family Member to Facilitate Important Meetings
When family members meet alone, familial dynamics often override business considerations. Inviting an independent business advisor shifts the focus to business, encouraging more professional communication styles. Sometimes, the mere presence of a non-family facilitator can transform the meeting dynamic.
- Use Business-Like Criteria for Decision Making
Avoid making decisions based on familial negotiations or history. Instead, adopt agreed-upon criteria for evaluating options objectively. A simple pros-and-cons list can be effective.
- Consider Having One Boss
In a business setting, ultimate decision-making power should rest with one person to avoid indecision and paralysis. If the boss has a collaborative style, it can improve team cohesion and effectiveness.
- Establish Clear Roles and Responsibilities
Define clear roles for each family member involved in the business. This helps to avoid overlapping responsibilities and reduce conflicts. Provide written job descriptions if necessary.
- Implement a Formal Communication Strategy
Create a structured communication strategy that includes regular meetings, updates, and feedback sessions. This ensures everyone stays informed and can address issues promptly.
- Develop a Succession Plan
Planning for the future is crucial in a family business. Develop a clear succession plan to ensure smooth transitions and sustain the business across generations.
- Encourage Continuous Professional Development
Encourage family members to pursue continuous professional development. This improves individual skills and brings fresh ideas to the business.
- Separate Family Time from Business Time
Draw a clear line between family time and business time. Implementing boundaries helps prevent business discussions from overshadowing family life.
If your family business could benefit from professional facilitation, I would be honoured to assist you. Contact me at paul@thebusinesstherapist.com. This responsibility is important to me, and I look forward to helping your family business.
