There are two types of family business nepotism - the bad kind and the good kind. The good kind allows business owners to take advantage of relationships with respected employees and colleagues to help find and hire employees with a similar work ethic and values. This kind of nepotism can actually help a business.
There are advantages to nepotism and there are disadvantages. The good kind of nepotism takes advantage of relationships with respected employees and colleagues to help find and hire employees with similar traits. Good nepotism has worked successfully for many family businesses and can foster an environment where employees feel that the employer really cares about them.
An elder is a person who is still growing, still a learner, still with potential, and still continues to have promise and connection to the future. In relation to family business dynamics, an elder is a person who deserves honor and respect and who utilizes wisdom from long life experiences to formulate a legacy for future generations.
Anyone serving a role in a family enterprise needs wise elders to provide family business advice, guidance and wisdom. Elders play an important role in family business. Modern-day elders serve the same function as elders in ancient times. An elder's wisdom lives on in the countless people whose lives he or she influenced.
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.
Family business policies should include periodic and scheduled performance evaluations. A performance evaluation presents an opportunity to discuss quality of contribution, work habits, professional growth, demeanor and attitude within the business and with customers. Family members set the standard for the company and their behavior must be a leading example for all employees.
A family employment policy should address what is necessary for a family member to enter into the business. Following specific pre-determined guidelines will help a business hire competent employee who will make a positive contribution to the business. It's important to remember that a job in the family business is not a birthright.
Every family business should establish a set of family business rules. These rules of engagement should encompass a policy that states how family members will be allowed to participate in the family business. The purpose of family business rules is to guide the business, and it's important to develop a written employment policy long before it is needed.
The premise of a family business and the premise of a family are not the same. Because the foundation for acceptance in the family is different from the business, there is a fundamental disconnect between the two systems that many people do not recognize. No business will be successful if the leadership is not competent.
