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Posting by: John Hrastar
Date: September 30, 2009
Often I hear from people working together in a business that, “We don’t need to schedule meetings, we talk with each other all the time.” Usually though “all the time” means a chance encounter in the hall, “talk with each other” means some casual remarks or a quick question, and “we” means two at a time, never the whole group. It’s the same for family members outside the business.
Meetings? We Don’t Need No Stinkin’ Meetings!
Well, perhaps those fellows in “The Treasure of the Sierra Madre” thought they didn’t need no stinkin’ badges, but research has shown that holding regular family business meetings is one of the keys to a successful family business. It is important for family members, whether involved in the daily operations or not, to have a regular forum designed to address those issues that are not appropriate for a pure business meeting. Family meetings act in part as a boundary between family and other employees so the personal aspects of family don’t get played out in the business setting.
Conducting business is difficult enough, and adding the family dynamic makes it even more complicated, so it’s important to keep communication lines open and connect all the stakeholders. The more valued people feel the more they will contribute to the family and the business, and the greater the energy and opportunities that will arise. Properly structured and regularly scheduled meetings acquire their own rhythm and get people in the habit of really communicating, which then carries over positively into both the family and the business.
Strong Communication Skills Mean Strong Families, Strong Businesses
Family business meetings help build a stronger family and preserve family values, traditions, and history. Over time the family can plan for family and in-law participation in the business and help succeeding generations learn to manage the wealth produced over many generations. The business becomes more professionally managed, which is especially important as it grows and needs outside talent. Opening up the discussion of long-term transition allows for solid future business planning and a well organized, timely succession process. Finally, family business meetings help manage the relationship between the family members and the board of directors or family council, also being the channel to recognize and resolve any conflicts.
In the next parts of this series we’ll examine the three types of family business meetings, how each should be used, and techniques to run a successful family business meeting. After that we’ll discuss the family council, how it is different, and some best practices for them.
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