“Every family business member feels differently toward the business: some hate it, some love it; to some it is a dream come true, to others it is a nightmare.”
The Family Business:
Insights into Working with Family.
Michael O’Malley, Jr.
Family businesses bring the collective power of familial trust, loyalty, passion, and determination to the difficult challenge of company invention, survival and success. And because reputation, legacy, heritage and community matter to families, their businesses tend to be more risk averse and stable over time. On the other hand, family businesses are also some of the most chaotic organizations possible— rampant with greed, rivalry, incompetence, drama and dysfunctional relationships. As founders set the tone for the business with an entrepreneurial repertoire that includes confidence, drive, ambition and personalities of control, those traits can lead to trans-generational problems.
Whether outstanding or outrageous, family businesses are a special category of organization. Special attention to how the organization’s structures, policies and procedures support growth and survival is paramount. Emersus works closely with your family to address the multiple challenges that can arise. We will support you in building or rebuilding an organization that is prepared to meet the challenges unique to a family business, like:
Family Governance Policies. Building a structure of how the family will work together to achieve collective goals—through family assemblies, a family council, and the development of a family constitution.
Board of Directors Development. Choosing board members that complement each other in helping you set policy for the business and make recommendations to the family council.
HR Issues Specific to Family Businesses. Addressing sensitive issues such as selection, compensation, training and development, and performance appraisals of family members.
Succession Planning. Designing and implementing a Succession Program that fits the particular needs of your organization
Emersus Consulting is a certified, expert user of the Hogan Suite of Personality & Cognitive Assessment tools, including the Hogan Personality Inventory (HPI), the Hogan Development Survey(HDS), the Hogan Motives, Values & Preferences Inventory (MVPI) and the Hogan Business Reasoning Inventory (HBRI).
More than 30% of all family-owned businesses survive into the second generation. Twelve percent will still be viable into the third generation and 3% of all family businesses operating at the fourth-generation level and beyond.
Joseph Astrachan, Family Business Review, September 2003