Family Business Checklist

Directions: Consider the internal environment of your family business.
Rate your agreement with each statement by checking the response that
best reflects your views.
Our People Yes No
1. We have strong depth and breadth of management talent in the business
2. We have technically competent, responsive, service-oriented staff that serve our customers well
3. Our operations, accounting and finances, sales and marketing, human resources, information systems, and other support functions provide high-quality, responsive service to the people who serve our customers
4. We have a good mix of visionary, futuristic thinkers and planners, and day-to-day doers
5. Our people are trained in the core competencies and technologies of our industry to have the competitive edge
Our Organization Structure and Systems Yes No
6. We are effectively structured and organized to promote communication, teamwork, mobilization of resources and focus for meeting the needs of our customers
7. We have well-developed management systems, work processes, clear direction from the top, goal setting, performance review and compensation/incentive practices that align, motivate and focus work efforts toward critical objectives
8. Our information systems provide timely, thorough, and accurate information about our business and our customers
9. We monitor the performance of our business, products and services, people and processes and take timely action to correct variances from plan
10. The current organization structure enables work to get done smoothly, efficiently, and successfully in relation to our goals and strategies
Our Products, Services, and Delivery Systems Yes No
11. We have a strong delivery system that enables us to fully penetrate our markets
12. We provide a full range of products and services to meet all of our customers' critical needs
13. We have effective capabilities for originating and developing new products and services responsive to customers' needs
Our Financial Situation Yes No
14. We do not foresee significant problems related to cash flow or finances over the next few years
15. We set realistic sales and profit objectives and usually meet them
16. We have reasonably accurate sales, cash flow, and profit information available
17. We have ready access to debt and/or equity to permit healthy growth and fund our plans to expanding the business
18. We have a current plan in place designed to maximize wealth and transferable value should there be a change of ownership at some future point
Our Climate and Culture Yes No
19. We are a results oriented business with a passion for implementing what we say we will do
20. We anticipate and plan for the future in a proactive way
21. Our employees all know where the business is headed in the next five years
22. We have a succession planning process in our business to insure we have the right numbers of right people with the right skills to take over when the right time occurs
23. There is a high level of accountability, commitment, and capability in the organization for achieving results
24. We have an effective process for selecting, developing, and coaching leaders in the business
25. There is strong alignment, cohesion, and common focus of the top management team
26. Our performance management and reward systems are directly linked to the strategic initiatives of the organization
Our Family Yes No
27. I know what the personal definitions for success are for other family members
28. I trust and respect the abilities of other family members
29. We have a defined ownership and management succession plan
30. We all work well together as family members
31. There is a clear strategic direction in our business
32. We are clear about the scope and boundaries of our work as family members
33. Family members are committed to what's in the best interest of the family
34. Family differences are openly confronted and resolved
35. We have a process to build business confidence and competence in family members

Our family business would be more effective if: