Keys to Family Business Success

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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.

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Keys to Family Business Success

  1. 1. Family Business: KEYS to Success “I want the business to stay successful… I want us to have Thanksgiving together…” (client Goal) Shem Cohen, MSOD Change Events, Inc. Copyright © 2013 All Right Reserved
  2. 2. Family Business Success… BUSINESS SUCCESS FAMILY HARMONY SHARED, PROMISING FUTURE Shem Cohen, MSOD Change Events, Inc. Copyright © 2013 All Rights Reserved
  3. 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
  4. 4. What family-business concerns are keeping you up at night? • • • • • • • • Performance Market Strength People • Business Family • Focus Skills • Work Climate • CURRENT COST Commitment of concerns to the Business? • Culture • The Family? FUTURE COSTS if we do nothing? • • • • The Person Work Relations Personal Relations Workplace Role Clarity Employee Relations Ownership/Rewards Shared Future FUTURE COSTS if we do nothing? Performance Leadership/Management Skills • Attitude • Focus Technical Skills • Commitment Soft Skills Shem Cohen, MSOD Change Events, Inc. Copyright © 2013 All Rights Reserved
  5. 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. 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. 7. KEY to Successful Family Business C L A R I T Y B U Y I N S H A R E D F U T U R E 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. 8. The Path to Family Business Success… = People engage each other in meaningful & productive ways to: C L A R I T Y 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. 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. 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. 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. 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. 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. 14. KEY to Successful Family Business C L A R I T Y B U Y I N S H A R E D F U T U R E 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
  15. 15. Shem Cohen, M.S.O.D. scohen@changeevents.com www.changeevents.com http://www.linkedin.com/in/shemcohen Meet Shem Cohen Strategic & Business Planning Facilitation Change Management Conflict Resolution: • Diplomacy • Mediation • Crisis Intervention Shem Cohen, MSOD Change Events, Inc. Copyright 2013

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