It can be easy to create a family business mess - even when International Best Practices for Family Business are followed. Being aware of business mistakes to avoid is optimal for delineating clear responsibility for positions and accountability for outcomes. It's important to anticipate possible outcomes of family business decisions before a family business mess is created.
Family business transition is something that all family businesses will endure at some point. When the founder or leader of a family business passes, survivors must have adequate information so they can make wise decisions about the business. Information should be compiled and customized so the family is fully prepared for the unexpected.
Having a family business plan in place is very important. Even though it is a difficult task, families must prepare for the challenge of dealing with the death of a family member who is a key to the family business. The death of a founder or key executive in a family business is a very difficult situation, but a family business must prepare for such a situation.
In family business, there is a clearly defined but invisible control mechanism called the family system. This system is often referred to as the family business psychology. In family business, the keys to implementing solutions to business problems are often locked up in the psychology of the family. Business solutions cannot be effective if family business psychology is ignored.
When a family business adopts a mission statement that spells out the business rules of engagement, the members of the family working for the business have something to anticipate. When it's possible to look forward to what lies ahead for a family business, a forward-looking approach and outlook is developed.
