Ways to be Involved in the Family Enterprise
When my husband first bought his engineering company, our three boys had no interest in being part of the organization. Only one was studying engineering, but he never aspired to go into business with dad. The other two also had different thoughts on their career trajectory. Although annually we set our goals for the next one to ten years, time and time again in everyone’s carefully laid out life plan, nobody described any role for being part of the family business. My husband continually pointed out the oversight, but I wondered how could we encourage family members to get involved with the family business?
Having direct involvement in day-to-day business activities is the obvious answer. Even though our boys did not pursue management or other leadership responsibilities in the core business, they did utilize an opportunity to be an intern. This gave them exposure to the business and to meet not only the management team, but employees at every level. There were some playful jeers that they were the future CEO’s, but they took the remarks in stride knowing that was not their path.
Developing a family business governance is the indirect track for family involvement. Governance described by the process of joint decision making that a family chooses to adopt based on their unique needs and characteristics to support a collective family vision. Included in governance is the family council with various committees, family constitution and family assembly/celebrations. As part of our governance, we began a family council almost immediately after the business was purchased. Collectively we decided on various committees and their responsibilities. We defined our vision, mission, and core values along with drafting a constitution. Our quarterly meetings, which initially were clunky, developed into more refined focused strategy sessions. The family celebrations with extended family marked notable achievements like the grand re-opening of Belle-Hampton Farm. As the organization structure gets built out, the involvement from the next generation is key to success.
Offering the opportunity to start a company within (or outside) the family business umbrella is another option for family business members involvement. By encouraging entrepreneurship, a family member can develop capital either in a direct monetary way or in knowledge by starting their own venture. Although forming a business under the overall enterprise structure could increase the bottom line, the skills learned outside of the company can increase capital in awareness and mastery. The outside view would bring a different perspective to decisions and overall strategy. Having the ability for a member to pursue their passions and their highest potential is a win-win outcome for either situation.
A unique way of having family members involved in the business is through education and training. This can be done through formal assessments and development programs. It can also be accomplished through experiential endeavors such as independent travel and group travel. Individual travel opens minds to different cultures and viewpoints. Having family members travel together allows them time to know each other which leads to loving each other. I am reminded that “You can only love those who you know.” Developing that comradery as well as shared memories develops a bond amongst the family. If the next generations are given the task of arranging a family trip with a budget of course, the collective decision-making trains them for future, more difficult resolutions. Thinking of training and education in both formal and experiential ways can spark the interest in even the most reluctant family member.
Although there is an abundance of ways to bring family members into the family business, the key question is why? Is there a purpose to have family involved with the enterprise? In our vision, we want to perpetuate the legacy of Belle-Hampton Farm for the next 250 years. To encourage the subsequent generations to practice good stewardship, we are instilling the values through the governance. But it is the family harmony that takes nurturing and encouragement. Why do you want the next generation to be involved in the enterprise, what for and for whom do you want them to stay together?
