10 Signs You Might Need a Family Meeting

Family Meetings improve family communication and help to get everyone on the same page. These meetings aren’t just for resolving conflict and sensitive family issues. They are also an effective method for discussing the strategic direction and vision of the business from the family’s perspective before sharing it with others within the company.

10 Signs You Might Need a Family Meeting

  1. Avoiding sensitive family issues hoping they will go away
  2. Personal issues are creeping into the business
  3. Seldom discuss the future direction of the business
  4. Avoiding succession planning and ownership transition discussions
  5. Struggling with the division of responsibility between family members
  6. Need a policy for family employment beyond current members
  7. Dealing with the need of hiring non-family managers for the first time
  8. Struggling with compensation plans for family members
  9. Torn between being a lifestyle or professional business
  10. Disagreement on growth rate and need for outside financing

If you have some of these issues in your family business, don’t worry, you’re not alone. Research shows that 90% of family businesses don’t hold family meetings. Why not be a part of the 10% Club who do.




Business Continuity is the Prize of Succession (Part II)


Legacies Newsletter
by Ernesto J. Poza

Succession is a Transition in Ownership and Management

Research conducted by Louis Barnes at Harvard indicates that when transition occurs only in management or ownership and not concurrently in both, tensions are amplified. I have experienced these tensions, for example, in successors who have assumed CEO responsibilities, but still do not own significant equity. I have also observed these tensions in families where a younger daughter, for instance, and not the oldest son becomes CEO. This “inverted hierarchy”, as Barnes calls it, means that in the transition, the management and owning family roles are reversed, posing adaptation challenges to the successor, the siblings and other family members. More…