Factors of effective family business culture
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Factors of effective family business culture
- 1. Drivers of Family Business Success Effective Family Business Culture Dr. John E. Neff Family Enterprise Consulting jneff@famentconsult.com October, 2013
- 2. Agenda • Introduction • Model of Effective Family Business Culture • Model Components – Shared Vision (Direction) – Confidence in Management (Belief) – Learning Agenda (Development) – Role Clarity (Responsibilities) – Family Cohesion (Unity) • Research Findings & Wrap up
- 3. Research Model Shared Vision Family Cohesion Conf. in Mgt. Role Clarity Learn & Network EFFECTIVE FAMILY BUSINESS CULTURE Family Firm Financial Success
- 4. Factor 1 - Shared Vision Leaders and Followers – • Aware of future vision • Meaningful to them • Inspiring and engaging • Guides action in ambiguous situations
- 5. Factor #2 - Confidence in Management Confidence in Management … Leaders Qualified … Required Abilities … Management capable … Achieved Success in Past
- 6. Factor #3 - Networking & Learning • Personal Development • Industry/Market knowledge • Awareness of Wider Economic Environment • HOW? – – – – Networking Professional Groups Industry Associations Personal Development
- 7. Factor #4 - Family Cohesion Satisfaction with… • Help from family when troubled.. • Discuss common interests & share problem solving… • Family accepts new activities and life-style changes... • Family expresses affection & responds to feelings of anger, sorrow, and love… • Time spent together…
- 8. Factor #5 - Role Clarity • Role Clarity (work role): – “My job duties are clear”, – “I know how much authority I have”, etc. • Conflict in Family Business: – Task Conflict (What is right) – healthy debate – Affective Conflict (Who is right) – destructive to relationships
- 9. Research Findings Shared Vision Family Cohesion Conf. in Mgt. Role Clarity Learn & Network EFFECTIVE FAMILY BUSINESS CULTURE Family Firm Financial Success
- 10. Too Much Role Clarity?
- 11. Family Cohesion & Role Clarity Interaction – Unexpected Finding • High Family Cohesion and high Role Clarity was associated with REDUCED financial performance…
- 12. Start Slideshow « Prev Next » Summary - Family Business Success Effective Family Business Culture – • Shared Vision (Direction) • Confidence in Management (Belief) • Networking/Learning (Development) • Role Clarity (Responsibilities) • Family Cohesion (Unity)
Editor's Notes
- Four factors combine to make a more effective business culture…State common terminology of definitions of Four Factors…
- Vision statement – Necessary but NOT sufficient. (Does having a drivers license, make a teenager a good driver?)People who do the work must see and believe the vision – what is means to them…PNEA – vision sub-scale – Management emphasizes a vision for the future.We often discuss possibilities for the futureOur future as an organization will be better than our past.I feel inspired by our vision and mission.We are encouraged by management to build on our strengths.Our work is focused on our mission and vision.Our purpose as an organization is clear in our vision and mission.Management emphasizes our current strengths.
- People believe (Trust?) that leaders have the skills and ability to be successful (realize the Vision!)Confidence in Mgt. Scale – The Top Management Team is very capable of performing its job.The Top Management Team is known to be successful at the things it tries to do.Top Management has much knowledge about the work that needs to be done.I feel very confident about Top Management’s skills.Top Management has specialized capabilities that can increase our performance.Top Management is well qualified.
- Not just job training/skill development but a wider scope. Also, Communication / sharing what you know within the organization – Networking Scale – I phone business contacts a phone call to keep in touch.I attend professional development seminars and workshops.I attended meetings of Industry-related associations.I participate in civic/social groups, clubs and so forth.
- APGAR Scale – I am Satisfied with the help that I receive from my family when something is troubling me.I am satisfied with the way my family discusses items of common interest and shares problem solving with me.I find that my family accepts my wishes to take on new activities on make changes in my life-style.I am satisfied with the way my family expresses affection and responds to my feelings such as anger, sorrow, and love.I am satisfied with the amount of time my family and I spend together.
- Small town Café – mother & son working in the business without clear duties/responsibilities. Business and personal relationships suffered. Role Clarity Scale – I feel certain about how much authority I have.There are clear, planned goals and objectives for my job.I know that I have divided my time properly. I know what my responsibilities are.I know exactly what is expected of me. Explanation is clear of what has to be done.
- Four factors combine to make a more effective business culture…State common terminology of definitions of Four Factors…
- Shipping dePuy boxes late afternoon on a Friday after Shipping & Rec. manager had left for the week. - Felt responsibility beyond defined job responsibilities…!
- Combination of elements