Family Business Success Checklist
Family business critical success factors - developing a checklist for success.
A 'hit or miss' approach to family business management is not likely to lead to the long term success of the family business. Adopting a systematic approach to achieving success can assist in the perpetuation of the family business from generation to generation. The following are some of the applicable principles:
- Enhance awareness and understanding of the dynamics of families in business and of the overlap between family and business systems. Ensure the correct degree of overlap and balance between the two intertwined systems.
- Identify and resolve outstanding family and business issues. Agree on a family business Charter or Constitution. Develop a sense of family identity and purpose - an inter-generation shared vision or dream.
- Provide strong capable leadership which unites the family by using their talents and resources and arousing their enthusiasm. Focus family interest and expertise.
- Develop stable, quality relationships and effective communication. Build trust and commitment. The family that plays together, works well together.
- Develop mechanisms to resolve conflicts and rivalry.
- Develop effective training/mentoring programs for successors. Establish clear roles, functions, responsibilities and accountabilities.
- Plan for growth and transitions, and manage both proactively.
- Ensure a reliable source of family capital.
- Plan for emergencies and their contingencies, and implement a preventive maintenance program.
- Professionalise management, and distribute power and resources thoughtfully.
- Establish clear legal arrangements in relation to ownership.
- Use outside assistance judiciously, e.g. advisory boards and professional advisers, including family business specialists.
Author Credits
Lucio Dana is a family business adviser & facilitator; lecturer in Family Business Programs at Monash University; and Managing Director of Creativity in Business P/L. which trades under the business name Family Business Dynamics. He is co-author of Family Business Succession Planning: A 10-Step Guide, 2000 Centre For Professional Development; Email ledana@go.com; Ph/Fax: 03 9841 5115