Keys to Family Business Success presents a framework of understandings and agreements which drive shared responsibility and commitment for achieving business success and family harmony.
3. …can be a tricky proposition:
Creating/maintaining a
successful business is, most
often, challenging…
&
Family/work
relationships can
get… ‘complicated’
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013 All Rights Reserved
5. Once the business framework is
stands on own strategic merit,
(not still in the business of manufacturing telephone booths)
SUCCESS
is ALL ABOUT PEOPLE:
- Understandings
- Agreements
- Shared Values
- Commitment
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013 All rights Reserved
6. Family businesses need manage the
same challenges as any other business
requiring the same sound strategic
thinking, decisions & positioning…
- but, also with the added complexities
of family/workplace culture, life-long
relationships and the negotiations/tradeoffs required to both stay competitive
and to maintain harmony
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013 All Rights Reserved
7. KEY to Successful Family Business
C
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Relationships
Systems
Roles
Goals
Values
Governance
Ownership
Shem Cohen, MSOD
Some problems
here, but can
be significant
Most Problems
Here
(lack of”
clarity, agreement,
effective systems,
business process
&/or, a current or
desired change in
status quo)
Change Events, Inc. Copyright 2013 All Rights Reserved
8. The Path to Family Business Success…
= People engage each other in meaningful &
productive ways to:
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Relationships
Systems
Roles
Goals
Values
Governance
Ownership
Shem Cohen, MSOD
• Establish Clear Ownership Agreement
• Anchor Clarity of Mission, Goals & Roles
• Create a Framework of Shared Values
• Co-create (as appropriate) Business
Direction, Strategy & Improvement
• Establish Process for Major Decisions
• Shape Agreements for Managing Conflict
• Create Streamlined, Value-Add Systems
and Processes
• Improve Relationships
• Engender Commitment, Personal Best
Change Events, Inc. Copyright 2013 All Rights Reserved
9. “Family Business” is a very broad
category with a range of priorities
and concerns…
Relationships
Systems
Roles
Goals
Values
Governance
Ownership
Established, high-net worth families
must successfully navigate concerns
related to wealth management/distribution,
spouse policies, governance and decisionmaking, shape clarity re: shared values –
and, at times, best manage ‘bad actors’.
Establishing a Family Council, Advisory
Board, Trustees and holding an annual
Family Assembly are best practices to
shape the understandings, agreements and
buy-in needed for business success and
family harmony
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013
10. “Family Business” is a very broad category
with a range of priorities and concerns…
Relationships
Systems
Roles
Family businesses ‘making a living
together’ often face concerns related to
business performance, leadership,
individual performance, professional skills,
rewards, succession/ownership and
employee relationships (and also, from
time to time, how to best manage ‘bad
actors’)
Goals
Values
Governance
Ownership
Shem Cohen, MSOD
Holding collaborative dialogues where
members participate in creating solutions
and driving clarity/agreement around
Goals, Roles, Performance and
Leadership expectations sets a framework
in place for future success
Change Events, Inc. Copyright 2013 All Rights Reserved
11. When Relationships ‘Go South’
Is most often related to unclear
agreements around ownership, goals,
roles, performance standards or lack of
effective systems, processes or
accountabilities
Can be related to significant style
differences
Is best managed through agreements
shaped through dialogue, within context
of the business and with orientation to
the future
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013
12. The Difference Between
‘Problems’ and ‘Dilemmas’
Problems are solvable – is a binary
equation… O’s and 1’s…
Dilemmas can never be solved – will keep
re-appearing over time…
-- Dilemmas can only be managed.
Style differences, cultural dynamics,
relationship histories, etc. – when are of
concern – are dilemmas that need
managing well (versus problems ‘solved’)
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013 All Rights Reserved
13. Managing Dilemmas Well Takes:
Recognizing the Dilemma
Seeing the polarities involved
Co-creating strategies to manage
towards the ‘sweet spot’ to desired
outcomes
Crafting Agreements
Taking Responsibility for the Future
On-going check-ins and corrections
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013 All Rights Reserved
14. KEY to Successful Family Business
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Open Communication:
Relationships
Systems
Roles
Goals
-
Strategic & Business Planning
Clear Expectations
Shared Vision and Values
Shared Decision Making (as
most appropriate)
- Shared Stake in Improvement
- Shared Hope
Values
Governance
Ownership
Shem Cohen, MSOD
Change Events, Inc. Copyright 2013 All Rights Reserved