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20 Tips to Winning in Family Business

By Darren Bourke – Director of Business Influence Pty Ltd 

1. Family is for Life. When the family business started you had a great vision for workingand succeeding together. Nothing - repeat nothing - is more important than your family. If yourego and behaviour finds you challenging the very core of a family relationship, step back andpause for a moment. It's simply not worth it as things said or actions taken in the heat of themoment can often never be undone. 

2. Do the Organisational Chart with Titles not Names. This technique is very effective intaking the ego out of the roles played by each family member. When we draft the business'organisational chart with job titles in them (rather than your names) it allows you to considerthe person with the most suited skills to fill the role. This strategy requires family members tothink in the best interests of the business on a commercial basis.

3. Document Position Descriptions. With the organisational chart completed, the oftendifficult task of "who does what" need not be so delicate. Using the job title as a guide, younow draft the responsibilities and tasks that a person with that job title would fulfil. Thistechnique often has massive benefits in removing tasks that overlap roles or individuals dueto family members taking on responsibilities on a haphazard ad hoc basis. 

4. Appoint Individuals to Titles & Position Descriptions. Now you have job titles andposition descriptions you can workshop the appointment of individuals to fill these roles.Remember to not limit this analysis to family. Non-family employees should be considered forall roles on an egalitarian basis. You can even extend your thinking to recruiting new stafffrom external sources if you don't have the right internal fit. 

5. Time Out. Allow you and your family to call for "Time Out" when things get a bit hot.Acknowledge that you both have a different view, that it's important you understand eachother's point of view and agree on a time to meet again to discuss. 

6. Play the Issue not the Person. A Golden Rule is to always "play the issue not theperson". Don't include personal attacks or family niggle in your business discussions. Agreewith the family that everyone should "call this" if they hear the person being attacked ratherthan the issue.

7. Dealing with Nepotism. Nepotism is when favoritism is shown to family. Regardless ofwhat you think, there are elements of nepotism in every family business. Don't live in denial.Nepotism is either very alive and recognised within the business or it may be perceived byindividual family members and/or employees. The goal of every family business is to avoidnepotism and promote and empower individuals (family or employees) based on merit andperformance. 

8. Walk the Walk. You will have heard the saying "Do as I say not as I do". Many familybusinesses have one set of rules for family and another for everyone else. Try and avoid thispitfall and be consistent in how you treat all individuals within the business. The morale,culture and ultimate business success depend on this. 

9. When to Talk Shop. Discuss with the family where and when everyone believes it'sappropriate to "talk shop". Try and create some agreed "shop talk free zones" to manageeveryone's expectations and allow for quality family time away from the business.

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10. Be Consistent. Linked to "Walk the Walk" is being consistent. Family businesses can benotorious places for making policy on the run. Everyone feels frustrated and confused whenowners are not consistent in their behaviour and decision making. Inconsistency often leadsto loss of customers and staff attrition. The ability to attract new talent through recruitment isalso affected if the market considers you "on the nose". 

11. Create Forums for Discussion. Rather than launching into animated discussion at anymoment anywhere, it's very useful to create regular scheduled meetings to discussoperational and management issues as a family. This allows family members to prepare inadvance and manages expectations. Agendas and time limits assist here. 

12. The Devil in Email. Avoid communicating through email. It doesn't allow tone orsentiment to come through. If you have an issue, talk in person. Banging out an email infrustration or anger is a potential time bomb. 

13. Internal Facilitators. Try and develop trusted internal facilitators within the business thatare allowed to keep the family honest in running the business on a commercial arms-lengthbasis. Respect and accept feedback when these trusted staff members speak up. 

14. External Facilitators. Seek and appoint expert external advisors to support the internalmanagement team. All successful business owners are surrounded by their inner circle ofexperts. Don't miss out on benefiting from this success secret by letting pride and ego standin the way. Take advice, share the load and increase the rewards for the family. 

15. Don't air your Dirty Laundry at Work. This is really easy. Just don't do it. Ever. 

16. Lead through Behaviour. Within the family group, choose to be a Leader indemonstrating these principals in your daily behaviour. Inspire others to follow suit and set thebar high. You'll be happier and have more work capacity as you stop spending time onnegative thoughts, politics or innuendo. 

17. Resist Empire Building. It's tempting but empires don't make you a success. Leave yourego in the bottom draw and share the spoils with the family. It's much more fun to achievegoals with others - particularly your family.

18. Smell The Roses Together. Remember when you went into business to create successfor you and your family? Don't forget to smell the roses along the way. Too many people say"when we get there we'll celebrate". I'm not sure "where" actually is or "when" you get there.So if you have a win, stop and enjoy it together. 

19. Create Wealth Together. One of the primary aims in running a business is to make aprofit. So what better way to enjoy it than creating wealth together with your family? 

20. Blood is thicker than Water. Loyalty in business is critical. The family bond and ability tounite under pressure is a competitive advantage unsurpassed. Never take it for granted butremember that the power of family can ultimately outlast, outwit and outplay your most ardentcompetitors.

  © Darren Bourke, Business Influence, 2009. You are welcome to “reprint” this articleonline as long as it remains complete (including the “about the author” information atthe end).

Darren Bourke is a Consultant, Business Coach & Mentor who helps small & mediumbusinesses struggling to maximise profitability, productivity, people and performance.His Free Report titled What Successful Owners of Growth Businesses Do That You Don’t, newsletter and updates are full of strategies and tips to make your business

boom. Sign up now at www.businessinfluence.com.au