Loading...
Loading...
That's how I worried others would think of me when I became the head of the Norwegian branch of my family's company.
Hopefully, the answer is a resounding yes. Family businesses have a unique opportunity to execute long-term strategies that are 100 percent value-based.
It often takes many disciplines to run a successful business, so when a company needs advice, it's not surprising if the need includes input from several types of advisors.
It's a fact. Many family businesses have had serious internal strife within the owning family - and yet the business has survived.
This should be a premise when family businesses hire external managers to run and develop the company.
The answer may seem obvious. But then it's not so straightforward after all.
I don't.
No. Contracts are at least as important in family businesses as in other companies. A family member who is not contractually obligated to fulfill a well-defined role in the company can be difficult to manage.
"Why does she always have to steal the spotlight?" This question is nothing new. Even back when humans first began hunting aurochs, we worked in close-knit groups.
The question reflects a surprise I sometimes encounter in people who advise family businesses without knowing much about their specific characteristics.
This is important. You may be making financial progress in your business. Everything may seem to be running smoothly in your customer relationships. But even if you discussed your values a long time ago, there is no guarantee that they are still:
Does your company have a family business forum? Even before I became involved in the running of my family business, I wanted to know what was happening in the organization, both strategically and operationally.
"Have you tested your family for talent, Mads Skjern?" You may be familiar with this situation. You and your family own, develop, and run a business.
There's no doubt about it.
Everyone who runs a family business should agree on this - and preferably before the confusion becomes a problem, as I have experienced it can be. The family dinner is an opportunity to talk on a personal level. It is NOT the right place to discuss decisions,
Is the family receiving excessive compensation? This is a relevant question for many family businesses.
Are you underpaid? You're not alone.
Explanation follows.
It is easy to imagine situations where not everyone in the owner family should have influence over the running of the family business.
When family businesses experience crisis and conflict, they are often reluctant to invite advisors in.
Owner families should respect formal decision-making processes. Many family businesses have a board of directors and day-to-day management consisting of a mix of owner family members and individuals with no family ties to the business.
It's not literally written in a contract. However, when we have confidentiality at work, it also extends to our spouses.
You've probably heard that claim before.