Time for the Family Business to consider a check-up

A New Year Check-Up

According to the American Medical Association and my own family Physician, we as adults (at least those of us over 40) are encouraged to have an annual physical exam at which time the Doctor usually recommends additional tests to understand what is going on in my body and to be on the lookout for potential concerns.

Family owned Businesses, of any age or generation, also need to take routine assessment of the health of their business, family, and individuals in the business. To get a clear true understanding, the assessment should consider all the factors that enhance the health of the Business Family.

There are many different formal and informal ways to conduct this type of assessment and each has its’ own pro’s and con’s. From my perspective, the critical issue is to ‘just do it” as Nike says, but also do it with an open mind to really learn what is going on in the business, family, and organization and then be committed to working at improving where we can.

The best way to find out is to ask those in the organization. One tool could be The Organizational Positioning System. This tool considers 11 critical areas that impact the life and vitality of a Family Owned Business. Understanding each area and the impact of these areas taken together and separately, provide insight for focused attention to strengthen individuals, the family, and the business. The 11 areas that are evaluated are:

Leadership; Values; Change; Goal Orientation; Empowerment; Communications; Team Work; Interpersonal Relationships; Familiness; Customer Focus; and Individual Recognition.

To help you begin the check-up of your Business Family, consider the aspect of Familiness and the questions to start the check-up:

A feeling of belonging, a shared sense of values and beliefs creates a sense of ‘ownership’, participation, and family. This dimension considers the extent to which members feel there is a sense of ‘family ownership and pride’ for all members.

1. There is a deep concern for all family members: stakeholders; stockholders, employees, customers, and others.

2. There is a very real sense in which all members of our family feel like a family.

3. There is a strong sense of pride and ownership by family members.

4. Each generation is inspired by their awareness of the family history and its vision for the future.

5. There is a shared vision of what the business will be like in the future.

How would your family, employees, and customers, clients, or vendors, answer these questions in their annual check-up?

We will explore other critical areas for the annual Family Owned Business in later posts.

What are your thoughts regarding the annual check-up?