Unauthorised entities are using au-gt.com impersonating our au.gt.com domain. Please confirm emails by contacting us here
These businesses are usually created with the notion that it will continue operating for generations to come, but constantly balancing performance against legacy is the crucial equilibrium for sustainable business continuity.
So, you know the value of legacy and business performance, but how do you ensure long-term, sustainable success? We’ll consider all perspectives – from family to owner and the business itself.
What makes family businesses different to corporate businesses is the element of family. Think about your own family: what values do you consider important? How do you live these values in your daily life?
The vision and principles of the family enterprise ensure the business is as significant to all family members, whether they are part of the business or not. It’s critical that this passion and values are aligned to business performance and outcomes. This can be done through documented family governance structures and regular Family Council meetings to always keep everyone on the same page.
Communication is also a crucial element of long-term sustainability and success in family businesses. Communication shouldn’t be polarising; it should consider some family members are involved in the business and know its strategic direction and financial results, while others work outside the business.
How do you ensure they are informed and feel included? When people aren’t kept informed, it’s natural for them to make assumptions and lack the full picture. This often leads to misunderstandings or feelings of resentment.
A simple and effective way to avoid this is communicating frequently and effectively with everyone in the business. Understand who should be informed and when to avoid unnecessary feelings of resentment amongst the team.
A combination of strategic planning, good governance and understanding of the business, as well as family values will ensure the long-term success and sustainability of a family business.
External facilitators can help ensure these pillars are achieved. They can help in checking on whether the vision is still aligned with the business decisions through the three-circle model below.
The three-circle model demonstrates, how family, business and ownership work together. It is where the circles overlap, and family members are wearing more than one hat or have more than one role that matters can become more complex and communication more important.
Members of our Family Business Consulting team act as external facilitators to help guide conversations in your family business. Our team can ensure you have the right conversations at the right time so that the business carries on a sustainable legacy for generations to come.
If you’d like any help with your family business and how you can align vision with sustainable legacy, please reach out to your Family Business Consulting representative today.
