Characteristics of a Healthy Family Business

All too often we read in the press about family businesses in crisis. Not enough recognition is given to those who have found the keys to long term success.

Healthy family businesses -

  • Clearly separate management and ownership
  • Have a clearly defined vision which the whole family buys into
  • Speak with one voice: are inclusive
  • Live their values as well as espouse them
  • Take time to understand the family’s concerns and the needs of individuals
  • Have a common language of trust inside and outside the family business
  • Have defined roles and responsibilities for family members, shareholders, and employees
  • Keep family meetings outside the boardroom and business meetings away from the dinner table
  • Can manage and resolve the differences that arise
  • Understand their children’s motivations and give their children freedom of choice
  • Have high staff loyalty and low staff turnover
  • Consider appointing non-executive directors to help bring objectivity
  • Don’t forget the family business members who aren’t involved in the business