Join David Bork and the Family Business Matters Consulting Team for "The Bork Process™", a two-day, cutting-edge workshop from April 12-13 in Miami, FL. This stellar seminar is the product of David’s accumulated wisdom from 50 years of expertise working with over 450 family businesses all over the world and is intended to be a deep dive into some of the BEST international family business practices, grounded in the Four Pillars of Family Business: Alignment, Boundaries, Communication and Competency.
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.
Family constitutions are a form of governance that sets up structure to regulate the manner in which family business matters are handled. A family constitution has the effect of helping a family run an efficient, effective, customer-focused and community-focused business. This type of focus ups the ante on the quality of behavior inside a family enterprise.
Corporate governance in family business is essential for long-term success. Family businesses that have survived over the generations have an internal governance structure that parallels the structures found in leading businesses around the world. Such structures provide an internal discipline on how family and non-family members will function within the business.
A policy for how family members will be permitted to participate in the family business can be referred to as Rules of Engagement. Family business rules are often manifested in the form of a Family Business Employment Policy. Family members working in the family business must show up, produce and perform to the same standards as non-family employees.
All owners of a family business eventually must consider a family business transfer from one generation to another. For a smooth transfer, families are encouraged to make a fully documented, comprehensive plan for all the things that must happen in the business and in their families so that transfer of control can occur in a timely manner.