Best Practices for Optimum Family Member's Development
Ratajack’s in North Chicago, IL
Growing up in a family business is a beneficial educational experience for any young child family member if done well. Exposure to day-to-day interworking and challenges that family firms face gives children a perspective their peers may never see. When I was in kindergarten, I learned math basics on a cash register in my family’s small business, Ratajacks. Although I could barely see over the counter, I worked side by side with my mom, who taught me the art of customer service while building family relationships. Being exposed to mounds of cash taught me the value of trustworthiness. But not all family businesses operate smoothly. Some family businesses become intertwined in family turmoil, as depicted in the movie Boss Baby: Family Business. How do you prepare a family business's heirs to function successfully over time while maintaining family harmony?
Even at a young age, it is essential to teach members the history of the business. How was it founded? What is the story behind the name? What were the struggles and successes? And of course, what are the company's vision, mission, and core values, and how do they align with the family's values? By telling the stories in an attractive, engaging way, children will grow up to become good stewards of the organization, reflecting the family's values.
Being part of the business does not necessarily mean working directly in the industry or being part of the succession plan. There are numerous ways to be involved indirectly. Do you have a family council? What about a family educational program? Or even a family newsletter? Maybe a budding IT person could design and maintain the family website? But it could also be directly in the business by having summer jobs or internships. Working either indirectly or directly can be an enormous benefit for the company with a bit of a caveat, outside experience.
An important aspect of maintaining the highest business acumen is for family members to separate themselves from the company before working directly in a leadership position. A position is awarded to them because of talent rather than nepotism. For example, Elizabeth Blackburn, recently returned to Cincinnati after a successful consulting career. Only 30 years old, she proved herself before entering her family's business, The Cincinnati Bengals. Now, she is certainly making an impact on the organization. The benefits of a company requiring family members to work outside the business first are monumental. It boosts the family member's self-confidence but brings new concepts into the company, making it a win-win for family business success.
Designing a formal development program also contributes to the success of the family and the business. As a first step, you might want to have family members take assessments such as Outmatch. If your family is fortunate, the results will be a mosaic of talents to develop further. Using sources like FYI – For Your Improvement from Korn Ferry, the family can focus on their top attributes to continue their development. Resources like Ted Talks and LinkedIn Learning also recommend various skill advancements. Another assessment, the DISC, evaluates communication styles. This analysis is critical in determining how we communicate and how we need to adjust to other communication styles. Having an intentional development plan as part of your family business plan helps bring up everyone's personal and professional growth strengths.
Taking steps to engage members of family-owned enterprises in 1) Telling interesting stories, 2) Exposing them to the business, 3) Working outside of the company, and 4) Developing a formal educational program will help achieve both family harmony and a successful business. How are you balancing both family and the family business?
