David Bork is proud to have contributed the forward for the book, MAPS for Men: A Guide for Fathers and Sons and Family Businesses. New York Times best-selling author and nationally syndicated radio show host Dave Ramsey calls this important book “a must-have resource for any and every family business."
Top Ten Family Business Facts | Fact #2: The Cluster Model Helps Capture the Evolution of Your Family Business Over Time
Traditionally, family businesses are described as constituent of three overlapping circles: 1) the family, 2) the business, and 3) the ownership (Gersick, Davis, McCollom Hampton, & Lansberg, 1997; Tagiuri & Davis, 1996). Recently, Michael-Tsabari, Labaki, & Zachary (2014) suggested the Cluster Model to update the two and three-circle models by providing a more detailed picture of the circles’ evolution over time.
So begins a recent special report on family businesses published by The Economist.
A successful family business must be poised to prosper for many generations to come. A quick list of necessary items needed to create a successful family business include: alignment on important matters, a shared vision for the company, a detailed action plan, a family constitution, a shareholder agreement, a responsible owner and an official employment policy.
Trust in family business is a critical issue. Strong relationships which are based on trust and communication build equality and respect - not power and control. Trust can be built, measured, tested and repaired. It is a way of reducing uncertainty in interpersonal and organizational settings and is necessary for cohesive and productive professional relationships.
Disputes can cause major disruptions within a family business and even spell an end to the business if not handled effectively. This is exactly why learning how to facilitate dispute resolution in family business is vital. The development of a shareholder agreement can prove to be invaluable in resolving differences and protecting a family business from making destructive decisions.
Strategic business decision making is related to consensus decision making in family business. Families that use a strategic business decision making process are committed to discussing issues until there is full agreement to move forward and implement a decision. If a family is committed to working together for the long term, it is best to embrace this model.
An Elegant Agreement is a family business agreement that is grounded in integrity. This type of agreement is analogous with the quote, "Take the high road through life. The view is better and it’s less crowded.” The Elegant Agreement is a win-win for everyone involved in a family business and helps preserve family relationships.