Family Meetings
Family dynamics are vital to the success of the family business. In fact, many successful organizations are trying to create family-like dynamics for their organizations because they know how important a family's common sense of vision, purpose, values and focus are to ensuring the continuity of the business. What's the secret? Part of the answer of strengthening family dynamics comes from holding regular family meetings. Family meetings can either be effective or ineffective. Effective meetings help preserve family tradition, history and values. Often, such effectiveness can be strengthened by using a family business advisor to facilitate the meeting process.
Family meetings can help build a stronger family harmony and a stronger business. They can help families plan for the future in orderly ways while resolving obstacles and barriers that may get in the way. They can become a forum for clarifying future roles for family member ownership and management while smoothing over past differences. They can become a place where decisions are made and things get done. Family meetings can avert painful and costly conflict that will impede ultimate family business value and harmony. Regular meetings can be a great way to discuss issues, make important decisions, and most importantly, foster a sense of stewardship, pride, and common focus for both current and future family initiatives.
Why do families sometime hesitate to regularly schedule meetings? There can be a number of reasons for family members to be fearful and wanting to avoid such meetings. Fears might include perceptions that the business and family affairs will not be openly discussed as well as there may be unwillingness to participate because of anticipated conflict and disagreements with other family members. Many family meetings tend to operate informally and lack meeting structure, process and/or governance for making important decisions. For all of these reasons and many more, family businesses may find it very beneficial to use a family business advisor to facilitate meetings as well as provide coaching and independent perspective to family members.
Symptoms to Look For
- There is no formal meeting process
- The family business lacks governance and/or a formal board
- Are important decisions being made correctly for both the business and for family affairs?
- As the family business grows, there is a need to "professionalize" the business, i.e., are family members aware of the importance of non-family executives, the value of an outside board, increasing requirements for business processes and financial management?
- There is a lack of clarity and/or a plan for ownership and management succession
- There is no formal way for family members to air and resolve differences before crises occur
- There is a tendency in family meetings to not talk about the real issues
- There is triangulation - triangulation happens when anxiety builds up among two family members and a third one gets caught up in the middle
- Decisions are avoided and/or made without discussion
- Do heirs have the "right stuff"-do they understand the critical requirements?
- Does the next generation understand their sense of responsibility?
Services and Benefits Provided
- Family meeting facilitation
- Consulting on family meeting process and structure
- Surveying and interviewing family business members
- Developing board governance
- Conflict resolution for family members
- Coaching on business leadership and family affairs
- Planning for the future of the business