Monthly Archives: July 2018

07/27/18

Defining Productivity For Family Business

In a recent blog post, entitled Business/busyness https://seths.blog/2018/07/busyness/ Seth Godin states that what matters in business is the question: “did I spend my day producing enough benefit for all the time invested?”

Seth is asking an important question; I recommend that you read the entire blog post.

Further into the post he provides a suggestion for answering the question: “Once you know what you seek to produce (not an easy task), add up all the time you spent to create it.” While not exactly what he was writing about, I fixed-on the phrase “once you know what you seek to produce” and related it to family enterprises.

It is not uncommon for a family business to come about accidentally. One starts a business, gets married; has children. The children help out and eventually assume control of the business. If things go well the business grows and the second generation passes it on to their children, likely in the same way they received it. They in turn assume responsibilities and eventually control the business.

In this scenario the business is looked at in present time, and productivity is largely measured in the context of the business’ balance sheet. Family is important; but as an entity separate from the business itself. There is not yet generational thinking and recognition of a family-business legacy.

With each generation as they grow, family businesses become more complex. The simple mechanism of succession described above no longer works. For the business to continue now requires planning. It requires a longer view; an intention to produce a multi-generational family enterprise. “…once you know what you seek to produce” is key. Intention aligns family members, resources and practices in the direction of a shared goal.

07/14/18

Family Meetings—Rules Of Communication

In recent blog/newsletter pieces I wrote about the importance of a specific type of family meeting whose agenda is to discuss the family itself in the context of the business, but not business management or operations. Subsequently I was asked what important actions could help these meetings succeed. At the top of my list: Establish rules of communication.

In his blog piece Rules of Communication in Family Meetings, Dana Telford of the Family Business Consulting Group wrote about an experience with a family he was working with. He had asked them to suggest some actions they would take, as part of their family meetings, to ensure everybody is listening and being heard, and that meetings will be productive. Telford includes the list of rules the family developed and adopted

  • “No interruptions
  • Be honest but respectful
  • Seek first to understand
  • Everyone has a responsibility
  • Set an agenda and stick to it
  • Set time limit for topics in debate
  • Anyone can call a timeout
  • All are equal
  • Everyone is included
  • The rules rule
  • Notes will be kept by the secretary”[1]

Rules may differ for different families, but having established rules of communication undoubtedly “can save a family meeting from falling apart and becoming a wasted, frustrating use of time and energy.”[2]

These same rules when carried over into all family communications will support the long-term success of both the family and the business.

In future articles I will explore some of these rules in depth and help you understand how to implement them.

[1] from Dana Telford, Rules of Communication in Family Meetings. The Family Business Consulting Group. May 14, 2015 (http://blog.thefbcg.com/author/danatelford/

[2] Ibid.