Statistics reveal that only 12% of family businesses make it to the third generation and even less to the next. Why? Is it because of poor service or bad products? Ineffective operations? Probably not. It is more likely the result of poor family relationships and a lack of participatory leadership. This is according to Dr. Stephen R. Treat of the Council for Relationships during his recent presentation at the S. Dale High Center for Family Business.
His focus was on unique challenges that family relations play in family businesses. These family relationships (both healthy and unhealthy) are the single biggest reason why a family business survives or fails.
Often a family business is “good at the business of the business”, but not the "business of the family." So, in order to have a successful family business, the family needs a participatory culture. A culture where team members have a voice, have a right to express opinions, challenge assumptions, and are allowed to play a role in establishing their goals.
But, how do you build this culture? His answer: “Play!” (which had me thinking about a wonderful book called A Whole New Mind that I profiled before). Play is about building relationships and earning trust.
He stressed the importance of family meetings and talking about the process of those meetings and the relationships involved.
He shared some key topics:
1. Power vs. Authority – Authority is in the hierarchy or position while power is in the quality of the relationship.
2. Creating peership within hierarchy – The power of asking questions.
3. Identity & empowered relationships – Know about yourself in relationship to others.
4. Self wisdom – Ability to see yourself in perspective.
5. Ability to give and receive feedback – Ask questions; do not defend: receive the gift of constructive criticism.
6. Is your leadership model reaction or response? Reaction is emotional and response is inquiry for meaning.
7. Is anger part of your leadership model? Anger is a defense against vulnerability.
8. What do you reinforce in others? Stepping out of right and wrong (win vs. lose) and into a sharing of different perspectives.
9. Managing through attribution – Creating relationships through positive attribution and positive attitudes.
10. Congruence of speech and behavior – Be vulnerable as it builds trust.
11. Ability to disengage – No personalization (too often we take everything personally).
12. Self-care – How do you nurture yourself?
In summary, relationships really boil down to attitude and communication. Communication is about both process (the how of communication – tone of voice, positioning…) and content (the what of communication). Build better relationships to build a better family business.
.jpg){kind=logo}
Comments
You can follow this conversation by subscribing to the comment feed for this post.