Family businesses are some of the most successful but also have their challenges. Professor John Davis from MIT Sloan School of Management was recently in Australia to talk on the topic with the World Business Forum’s World of Business Ideas program. He outlined guidelines for success for family businesses in the food and beverage sector for Food & Drink Business.
Family businesses present unique operating intricacies that need to be navigated successfully for growth and sustainable leadership. At times it can be difficult for families to make tough decisions within a business, especially if a certain decision might impact a family member working within.
Many families will often try to avoid conflict and raising sensitive issues, which can in turn have a negative impact on the longevity of the business.
For this reason, it is crucial that family businesses put in place decision-making protocols in order to establish who makes what decision within the business. Through establishing such a protocol, it can help the family business somewhat maintain momentum and create synergy among all members.
Highlighting distinct roles and job titles is a great way of developing a strong, cohesive team. It is important to be clear about where each member sits within the business, both family and non-family members.
Be sure to add structure to job functions, reporting relationships and performance goals for all employees. Once this has happened, specific job responsibilities and performance goals must be documented for all employees and communicated effectively throughout the business.
Family unity is also one of the keys to a lasting family enterprise, and it needs to be consistently worked on. Achieving common ground when it comes to decision-making between family members can help the business’ success and longevity.
