Learn how family and company leadership should be handled to enhance family functionality and reduce family dysfunctionality. In this video, Eric Flamholtz discusses the separation of family leader and business leader, and how to make sure the family addresses violations when the two roles become confused.
- What happens when the leader of a family…is not the leader of a family business?…Yes, you guessed it. Conflict.…In one of my family business clients,…a young man named Jason started…a very successful family business.…As his business grew, he brought all of his…family members into the business,…including his father and his mother.…Jason's mother was hired as the accountant.…And Jason's father, Richard, was hired…as the chief legal counsel.…Both reported to Jason,…but the situation was a bit awkward.…
Over time, the conflict grew between…Jason's role as the leader of the business…and Richard's role as the leader of the family.…At times, Richard acted as though…he was the leader of the firm, not Jason.…And it was a serious problem because it caused…confusion in the company.…If you want a family business, you must have clarity…about who leads the business and who leads the family.…Now the truth is that some conflicts…are innocent misunderstandings.…Others are almost by design.…For example, where the business leader…
- Recognize the two kinds of family business issues.
- Define values in terms of a family business.
- Identify the six key areas of family dynamics.
- Summarize how to manage a business when the business leader and the family leader is not the same person.
- Recall the steps for creating values for a family business.
- Examine the importance of family business plan objectives.