Building the Family Business “Team”
Family Ties Newsletter
By Michael Wilkes, MBA, CBC, Senior Leadership Consultant
Developing an effective team is a major challenge for any business. Yet, it can be especially challenging for a family business since members of your team frequently wear a number of family and business related “hats”. Unfortunately, there is no magic formula for developing a productive team, but rather an overall guide to the hard work that is required.
To start, you might want to view your team as an “energy source” that team members are responsible for harnessing and directing. The team is responsible for three primary tasks in harnessing this energy – establishing Purpose, Partnership, and Process. Within each of these tasks the team must assure there is Clarity, Capability, and Commitment. More…
The Key to Long-Term Shareholder Value, Part I
by Donald J. Jonovic, Ph.D.
Owners of closely held companies, by experience, inclination, necessity, and, often, personality, tend to focus on the short term. Most available waking hours are absorbed by immediate problems, sudden opportunities, annual profits and cash flows. Fortunately, a successful business can, in fact, be built this way. It happens every day.
Unfortunately, this focus on immediate challenges and rewards is definitely not the way to build the shareholder value of that successful business for the long-term.
Consider how this outlook affects transition. Few would doubt that a smooth ownership and management transition in a family firm can enhance the value of that firm to shareholders and potential buyers. Even so, in companies with a short-term focus, transition (when it’s thought about at all) is seen as an “event” in some distant future: “We’ll get to it when the problem arises.” This is wrong. Companies don’t suddenly decide to have a transition any more than a woman suddenly decides to give birth. Transition is a process. It is a way of going about things. More…