Decisions in a family business are made in the context of not just the business, but of the family relationships. Families are complex, emotional systems, so what can seem like straightforward business decisions are deeply affected by the history of the family relationships and the health or complexity of those relationships. That is why taking …
Continue reading Why are family businesses so slow at making decisions?
Yesterday the IMF issued its updated Economic Outlook. As anticipated it does not carry good news. In a nutshell the report outlines that the global economy continues to face steep challenges, shaped by the lingering effects of three powerful forces: the Russian invasion of Ukraine, a cost-of-living crisis caused by persistent and broadening inflation pressures, …
Invariably at one point or another owners of Family Businesses often ask me "How can I get my son or daughter to be more committed and better prepared at leading the family business in the future?" It seems that present family business owners are all seriously concerned on the continuation of the family legacy through …
Continue reading Parents leading Family Businesses – Please note!
I find that often people think about conflict when they think about family business. Many believe that there is a direct link between family businesses and rowdy meetings whereby conflict is the order of the day. That may all be true. However I feel that far worse than conflict, family businesses are plagued by a …
Continue reading Excessive Conflict is bad, Artificial Harmony is Worse
We have now been going through a sustained period of time whereby family businesses & SMEs have to deal with various unprecedented challenges. Over the years I have learnt that on average family business have important positive traits like a strong financial resilience and a strong commitment to the business, that will help them overcome …
It is truly incredible that in the current turbulent and volatile business environment I still see various businesses struggling to get their act in order to achieve consistent and timely financial reporting. Financial reporting is a key aspect of any business as it provides valuable insight, enabling businesses to make more efficient decisions about their …
Research after research indicate that there seems to be a constant decline in the enterprising spirit in family businesses, as these pass from one generation to the next (if they ever make it that far). One common explanation for this decrease stems from the idea that next generation members are coddled to the point that …
Continue reading Does your family business lack a sense of enterprising spirit?
Some of the longest standings businesses across the globe are family businesses. They are the the epitome of resilience. However just like any other business, family businesses need to deal with a volatile, uncertain and complex business environment, where the past success doesn’t guarantee future success. Once, someone I look up to taught me, that …
Continue reading Hard Times Ahead – Do not shoot the messenger in your family business!
As a business owner or leader, do you have a firm understanding of the business's value? Do you know with certainty how much value you created in the past year? Can you pinpoint where in your business value is being created and where it’s declining? If the answer to any of these questions is “no,” …
As a family business consultant I meet way too often family members that are given jobs, promotions and salaries that they would never have achieved hadn't they been family members in the first place. One of the most critical juncture and challenge facing any family businesses is how to treat the next generation. Most parents …
Continue reading Succession Planning in Family Business – Is it really merit based?
A Business Blog for SMEs & Family Businesses 