family business – Bottom Line Top Line

013 Family Councils for Family-Run Businesses

Welcome to the Bottom Line Top Line Podcast with Carol Bartlett, Jol Hunter, and Chris Spurvey.

In this week’s podcast episode, we discuss the importance of family councils for family-run businesses, how such a council can benefit the performance of the business, and some tips for maintaining open dialogue among family members.

If you want to know more about this topic, listen to the episode!

To download the document, scroll to the bottom of these show notes and fill in the form.

Setting Agendas for Family Council Meetings

To fully engage the council members, meeting agendas should be fresh, dynamic, and interesting.

Particularly when multiple generations are involved, no two agendas should ever be the same. But the agenda should always relate to the family council’s purpose—the value that you expect to gain from the council’s existence.

The Importance of a Family Council

You should set clear rules for your family council—both its purpose and how it will operate.

These rules must be set up early and with input from not only members of the family but also non-family who are leaders in the business. The point is that everyone have a solid understanding of the council, including what to do when something unexpected happens.

What if the business’s leader gets hit by a bus?

I’ve worked in the leadership of family-run companies, and the senior executive and I weren’t allowed to travel on the same flights. We weren’t allowed to go to the airport together. Those are the types of procedures that the family and the Board of Directors put in place to secure a smooth leadership transition if the worst happened and the flight crashed.

What Makes Family-Run Businesses Different from Other Businesses

In a typical business, senior management reports to a CEO, the CEO reports to the Board of Directors, and the members of the Board report to the owners.

In a family-run business, senior management may be owners or members of the Board of Directors. The CEO may be an owner, a member of the Board, or neither, and he or she may or may not be a member of the family.

Given these potential complications, the way in which family-run businesses report to their owners and other stakeholders may differ from other businesses. For example, the head of the family may work for the CEO if that approach is best for the business.

To learn more about these topics, please listen to the episode.

Mentions

Connect with Carol, Jol and Chris on LinkedIn.

Younger Next Year (book) by Chris Crowley

011 Dynamics of a Family Business

Welcome to the Bottom Line Top Line Podcast with Carol Bartlett, Jol Hunter, and Chris Spurvey.

In this week’s episode, we talk about the dynamics of a family business and how you can ensure that your family business moves forward without compromising the relationships among family members involved in the business. We also talk about whether you should encourage your children to join the family business or allow them pursue their own passions.

This episode is full of insights about parenting, family life, and business, so make sure to check it out!

To download the document, scroll to the bottom of these show notes and fill in the form.

Structured Communication in Family Businesses

Family members who are in business together are often good at making assumptions—having a sixth sense—about actions that should be taken, because they’re familiar with another. But the ease of making such assumptions can have negative consequences. Structured communication processes can help.

Family businesses must have clear rules about which decisions can be made by whom, which decisions must be discussed and with whom, how those decisions should be communicated, and the process for implementing them.

Although some lines may always be blurry, structured communication can minimize the challenges.

Involving Children in the Family Business

I’m in favor of involving children in the family business early. But I’m also in favor of encouraging children to find their own ways and their own paths rather than pressuring them to go into the family business.

I recommend that you encourage your children to get involved in the business to learn the business model, how the business operates, and how to make wise business decisions.

Standards for Family Members in the Business

You should have clear standards, or expectations, for family members in the business. For example, if the expectation for employees is that the workday starts at 8:00 a.m., maybe all family members should start work at 7:55 a.m. If the usual lunch break starts at noon, maybe family members should take lunch at 12:05 p.m. Standards usually should be higher for family members to ensure that they earn the respect of their non-family coworkers.

How Being a Parent and Running a Business are Similar

I’m not a parent. But I think that in parenting, as in business, we do the best we can and sometimes we’re harder on ourselves than we should be. Becoming a parent doesn’t come with a guidebook, and businesses are the same way, so let’s be a little bit easier on ourselves.

To learn more about these topics, please listen to the episode.

Mentions

Connect with Carol, Jol and Chris on LinkedIn.