When you are part of a family business, there are many different aspects that you need to manage. It is hard to remain objective as your relationships outside of the office could be affected by decisions at work. In addition, issues that need to be discussed can be uncomfortable, and people might avoid them. Take a look at some of the ways to navigate these tricky issues.
CEO Succession
It can be difficult to discuss who will succeed the CEO in a family business. The person in the position may resist the idea that they will be replaced, and they can make it difficult. It is best to approach this topic objectively as part of planning, and don’t wait until it is necessary due to impending deadlines. You need to make a plan for the future to prevent unnecessary disagreements later on.
Work on Building Business Trust
Even in a family business, people on the board need to build relationships based on trust. It might take longer, but it is critical. It is important to be more sensitive to certain topics, and consider how different members of the family will respond to them. As younger family members grow up, they need to understand any policies that are in place.
Avoid the Appearance of Bias
It is harder to eliminate bias in a family business, but it is critical if the business is going to survive. Some companies hire an outside consulting firm to assess the family members to make sure that it is more objective. This can be better than using an HR department from within.
Develop the Younger Talent
It is important to engage the younger family members so that you can develop talent for the future. They need to learn the skills they need to be involved in as they get older, and they will benefit the business more if they are more invested in it. When people don’t know how to do a job, they are less motivated and engaged, so take the time to develop the younger talent so that the business does well in the future.