The aspiration of many family business owners is to have their children become an integral part of their enterprise. However, merging familial ties with business operations often presents a complex dynamic that can be difficult to balance.
The Two Faces of Family Business
At first glance, the concept of a ‘family business’ seems contradictory. In a family setting, bonds are built on unconditional acceptance, cherishing each other for the simple fact of being family. In stark contrast, the world of business is a realm of results and performance metrics.
From decades of immersion in succession planning, it’s evident that many family businesses tend to lean excessively either towards the familial aspect or the business side.
Leaning towards Family: Decisions anchored in familial sentiments can sometimes lead to hasty promotions, inflated salaries, and relaxed professional norms. Such an approach might elevate the family member’s stature, but it may hamper their chance to command genuine respect from colleagues.
Leaning towards Business: An overtly business-centric approach can inadvertently overshadow the emotional needs of the family. This might lead to feelings of being overlooked and could deter the next generation from participating actively in the business.
At The Rawls Group, we stand by the conviction that business accomplishments should never come at the cost of family relationships. Success in succession planning often hinges on successors proving their mettle, creating an atmosphere of merit and respect.
The Generational Gap in Perspective
A recurring challenge in family businesses is bridging the generational divide in perceptions of ‘sacrifice’. As the older generation reflects on the hurdles they overcame to establish the business, the younger generation, with their distinct set of experiences, may have a different understanding of what constitutes sacrifice.
Furthermore, while the intent of many business founders is for their offspring to maintain a better work-life balance than they did, it’s essential to recognize that unwavering commitment is often the foundation of a thriving enterprise.
Striking the Right Chord
Achieving a balance between familial emotions and business imperatives is a nuanced task. It necessitates prioritizing family moments, even amidst demanding schedules, ensuring familial ascendancy in the business is based on merit, and promoting clear communication around business visions and goals.
Establishing structured platforms, like a Family Business Council, can be instrumental in aligning the collective aspirations of the family with the overarching objectives of the business.
Harmonizing Business and Family Relations
While intertwining family and business has its set of challenges, the journey, when navigated adeptly, is immensely fulfilling. Engaging trusted advisors can provide clarity, guidance, and help in maintaining this intricate balance. Achieving equilibrium between business growth and family cohesion is rare but deeply rewarding. Witnessing the next generation prosper and uphold the legacy within the family business can be one of the most gratifying experiences for any business owner.
This article was originally published on Digital Dealer: Successfully Navigating the Landmines of Family and Business: The Key to Exceptional Rewards
Family Dynamics and Family Governance
Family Dynamics and Family Governance
Family and Business alignment is hard to find when business issues liven up family dynamics.
However; with proper process, governance policies, and mutual respect built over time, a Family Business can thrive through multiple generations. Click the following links for more drill-down resources on Family Dynamics and Family Governance.
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