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.
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.
Family business structure and the concept of adapting and evolving applies to family-owned business. When creating solutions for a family business, the first step is to analyze the functions that need to take place to make the business work. Family business structure and efficiency can ultimately lead to higher profitability.
The power of the Golden Share is immense. All family businesses should be using International Best Practices for Family Business. A family-owned business is, first and foremost, a business. If a family wants its business to be successful, if must be run the way any successful business is run. Keeping the focus on the business is what makes things possible.
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 taxes are not always fun to deal with, and when tax issues become intertwined with family business decisions, it can become even less fun. If families in business are to avoid the "heartburn", they must carefully examine the family monetary policy and what it is that holds their family together.
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.
Nepotism is neither good nor bad, in and of itself. Nepotism is the practice of showing favoritism toward one’s family members or friends in economic or employment terms. Experience has shown that nepotism works IF and ONLY IF the values of the family members are congruent and the successor is fully qualified.