In business there are few greater questions than what comes next. This is especially true in family companies, where work is always personal, despite what management mantras might try and teach us.
Two-thirds of the UK’s businesses are family-owned. That’s 4.8 million businesses in total, of which over 16,000 are medium to large businesses.
In the last article we highlighted The Dream Team Model and why you need different blended profiles to grow a business, and how strong business genes can be passed on from generation to generation. In this article we will be going through all of the 9 Dream Team DNA Profile Descriptions in detail.
One of the keys to ensuring you have a balance of all profiles is to be able to easily recognize the traits, qualities, and skills that comprise a profile. In order to choose the right people to fill these roles, you must be familiar with and have a good understanding of each profile.
In my last article I redefined the family business, highlighted some differences between family and non-family businesses, and explored some of the advantages and disadvantages of a family business. In the future, we’ll explore every imaginable facet of family business, from securing family commitment and participation to aligning vision, mission and values, from determining family job roles to exploring leadership, management, and governance.
But, before we delve into those topics, I would like to introduce The DNA Model. I created the DNA Model as a means to ensure that all of the skills and aptitudes necessary to run a successful business are present and that they are intertwined and interwoven to ensure a strong, enduring business is built. The DNA Model is the model of success for any business, family-run or not, and is at the core of all thriving profitable businesses.
Before you get the idea that family businesses benefit only the family members involved, think again. Successful family businesses are a win/win. They benefit both the local and global economies, and in a big way. However, how can it also be true that fewer than 10% survive to the third generation and less than 10% of owners are financially independent from their businesses when they retire?
Family firms come with their own set of unique advantages and challenges. In order to be successful, the advantages must be capitalized upon and the challenges overcome.
When you think of the term "family business," you may initially think of the mom and pop store in your neighborhood—you know, the kind of small business that supports and is run by a single family. You rarely think of large, successful, global organisations.
The fact of the matter is that "family businesses" come in all shapes and sizes, from the small convenience store where father orders the merchandise, mother does the books, and the kids run the cash register, to the large corporation that provides income not only to the family members who own or control it, but to thousands of other families as well. Some of these businesses are governed by family members only, while others rely heavily on outside influences. Some family businesses employ a "hands-on" philosophy, while in others family members merely play an advisory role.
My point here is that there is no one "blueprint" that these businesses must follow. That being said, when I refer to "family businesses" in my book, you can assume four things to be true:
When conflict arises in the workplace, the worst thing that you can do is to ignore it. It may start with two capable people in disagreement over little issues, but it can soon build and disturb the entire workforce.
Many business leaders who have left these issues to stew or resolve on their own have found that they end up watching some of their best talent walk out of the door in search of a healthier and safer work environment.
Developing an effective conflict resolution skill set is essential to building a successful business model. Good conflict resolution will ensure that your workforce can continue to be productive and will diminish the likely barriers to cooperation and collaboration.
No matter the size of your business one of the most pressing issues in longer term planning for business is succession planning.