Common Good Center for Family Businesses

As a family business owner, it can feel overwhelming to decide whether to pass the business to the next generation or consider selling it. Sometimes, the next generation might not be ready yet, or you're unsure if transitioning the business is the right move for your family. Fortunately, there are crucial areas you can work on, regardless of your ultimate succession plan. These "value drivers" can increase the value of your business and set it up for long-term success: ? Profitability ? Cash Flow ? Written Systems in Place ? Strong Management Team ? Not Dependent on Owners If you choose to sell the company, these elements will be critical in attracting a buyer. If transitioning the business to your family, these factors will empower the next generation to succeed. By focusing on these areas and setting SMART goals, you'll leave your family with a thriving, updated business—not one that requires a complete overhaul. It’s a gift to give the Rising Generation a business that’s set up for future success! #FamilyBusiness #BusinessSuccession #Leadership #ValueDrivers

Celebrating Labor Day: The Heart of a Family Business Labor Day is more than just a day off—it’s a time to honor the hard work that drives our economy. For family businesses, this holiday holds a special significance. It’s an opportunity to celebrate the unique spirit of collaboration, dedication, and tradition that defines these businesses. Family businesses blend personal commitment with professional ambition. Every family member plays a crucial role, contributing not just to the company’s success but also to its legacy. Labor Day is a reminder of the collective effort that goes into sustaining a family business, where both employees and family members are key to its growth. This holiday serves as a moment of gratitude for the tireless contributions of everyone involved. Whether it’s the founders who built the foundation or the new employees who bring fresh energy, each person’s work is vital. As Labor Day is celebrated, family businesses are encouraged to acknowledge the efforts of their team—family and non-family alike. It’s a time to reflect on the past, appreciate the present, and look forward to a future where hard work and dedication continue to be the cornerstone of success. In the end, Labor Day is a celebration of the people who make a family business thrive—the true heart of the company.

Clarifying Expectations in Family Businesses for a Healthier Future Family businesses thrive on strong relationships, shared values, and a common vision. However, without clear expectations, these strengths can become sources of conflict. To support healthy individuals, maintain strong family relationships, and build a robust company, Common Good Center has a tool designed to help families clarify and define expectations for how family members enter, behave, and eventually leave the company. Establishing a standardized process for family employment is crucial. It sets clear criteria for how family members can join the business and ensures that everyone understands their roles and responsibilities. This reduces the risk of unhealthy conflict and missed opportunities, fostering a more harmonious working environment. The earlier you start discussing these expectations, the better. Ideally, these conversations should begin when children are young. This proactive approach helps prevent the "slippery slope" where assumptions and informal practices can lead to misunderstandings and resentment later on. Every family business is unique, so you must adapt expectations to fit your specific needs. Your business is distinct, and your approach should reflect that. By taking the time to tailor these expectations, you’re setting up your family and your business for long-term success. How do you feel about setting up family employment expectations for your family members?

Respect and Kindness in Family Meetings ?? Family business meetings don’t have to be all business! They’re a chance to connect and build each other up. ?? A little respect goes a long way—like not interrupting your sibling mid-sentence. Remember, balance that constructive feedback with some well-deserved praise! ?? And hey, let’s keep those side conversations in check. Instead, focus on the person speaking—no sneaky phone checks! ?? Together, we can create a space where everyone feels valued, respected, and heard. Now, let’s get this family meeting started on the right foot! ?? What other ways can you show respect and kindness in Family Meetings? No wrong answers!?? #FamilyBusiness #RespectAndKindness #BetterTogether

The Power of Respect and Open Dialogue in Family Business Meetings Running a family business comes with its own unique set of challenges, particularly when it comes to communication. Meeting expectations can help maintain respect and openness during meetings, ensuring everyone’s voice is heard and valued. Respect is the foundation of any successful relationship, and this is especially true in family businesses. When family members respect each other despite their differences, it creates an environment where everyone feels valued and heard. This respect is demonstrated by: 1. Avoiding Interruptions: Interrupting or having side conversations during meetings distracts from the discussion and shows a lack of respect for the speaker. Family members can foster a more respectful and productive dialogue by committing to listening attentively. 2. Balancing Affirmations and Critical Feedback: While focusing on what needs improvement is easy, it’s equally important to acknowledge what’s going well. Balancing affirmations with critical feedback helps create a positive and constructive atmosphere in meetings. 3. Deep Attention and Direct Communication: Giving each other your full attention and speaking directly to one another, rather than about one another, helps avoid misunderstandings and builds trust. Avoiding triangulation—where issues are discussed with someone other than the person involved—is key to maintaining healthy relationships. Family business meetings often involve sensitive topics. Maintaining confidentiality is crucial to building trust. When family members know that what is shared stays in the meeting, they are more likely to speak openly and honestly. This trust is essential for resolving deep-seated issues and making important decisions. Respect and open dialogue are vital to the success of any family business. By using meeting expectations in meetings, you can create an environment where everyone feels respected and valued. This leads to more productive meetings and stronger family relationships, both of which are essential for the long-term success of your business.

Effective communication is the cornerstone of any successful family business. However, navigating family dynamics while maintaining professional relationships can be challenging. That's where the "Meeting Expectations" tool comes into play. This tool is designed to foster better communication and accountability within your family business, ensuring everyone is on the same page before and during meetings. Why "Meeting Expectations" Matters The primary purpose of this tool is to create a framework for better communication. By setting clear expectations, family members can approach meetings with a shared understanding of how to communicate effectively. Reading through these expectations before every meeting helps set the tone, reminds everyone of the agreed-upon behavior, and holds each participant accountable. Some Key Principles of Effective Communication ?Seek to Understand First: The foundation of good communication lies in the willingness to understand others before seeking to be understood. This means taking turns to listen and speak, ensuring that everyone has a voice, regardless of their role in the business. ?Stay Curious and Resist Judgment: Curiosity and judgment cannot coexist. When a statement causes tension in a meeting, it’s crucial to ask clarifying questions instead of jumping to conclusions. This approach prevents misunderstandings and promotes a culture of open dialogue. ?Respect Each Other Despite Differences: Mutual respect is vital, especially when disagreements arise. By balancing affirmations with critical feedback and avoiding interruptions, family members can maintain a respectful atmosphere. To truly benefit from this tool, make it a habit to review your "Meeting Expectations" regularly. Update them as needed, especially when recurring phrases or behaviors disrupt productive conversations. By doing so, you'll create a culture of continuous improvement in your family's communication practices. Effective communication is essential in any family business. The "Meeting Expectations" tool provides a structured approach to fostering better communication, ensuring that meetings are productive and respectful. Implementing this tool can lead to healthier relationships and a more successful business.

The Importance of Crisis Planning: Part 2 Consider a recent scenario involving a family business operated by two brothers for over three decades. Their discussions centered on a long-term transition plan, intending for their children to eventually co-own the company. Tragically, an accident claimed the life of one brother, leaving the company without a crisis plan. This unexpected event forced the surviving family members to hastily fill the deceased brother's critical role in the business. Adding to the crisis, the existing Shareholder’s Agreement and Wills, rather than the deceased brother's children, allocated the shares to the surviving brother. This oversight not only led to significant tax implications but also strained family relations, highlighting the importance of a comprehensive crisis plan. The creation of a crisis plan offers several key benefits: 1. Ensuring Business Sustainability: One of the key Benefits of a well-structured crisis plan is ensuring the sustainability of the business. Such a plan guarantees that the company can continue to operate and remain resilient, even if a key employee is no longer able to contribute. 2. Peace of Mind for Spouses: Knowing that succession planning is already addressed alleviates the burden on spouses, preventing them from navigating complex decisions during an emotionally challenging time. 3. Clarity for the Next Generation: Clear directives in a crisis plan prevent disputes among heirs and provide explicit guidance on the wishes of the deceased, ensuring smoother transitions and preserving family harmony. Have you considered the impact a crisis could have on your business and family? Share your thoughts and experiences below. Let's discuss the importance of planning for the unexpected. #CrisisPlanning #FamilyBusiness #LegacyProtection

The Importance of Crisis Planning: Part 1 In the realm of family businesses, planning for the future is paramount. Transition plans are generally divided into two components: the long-term plan and the crisis plan. While the long-term plan outlines the desired goals and aspirations for the business, the crisis plan addresses the unforeseen events that could disrupt these ambitions. As seasoned business owners are well aware, the future remains unpredictable. One crucial question often overlooked is: What would happen to the business in the event of the owner’s death or disability? This is where the crisis plan becomes indispensable. Many business owners shy away from creating a crisis plan for two main reasons. Firstly, it forces them to confront their own mortality and vulnerabilities. Secondly, it involves a significant amount of paperwork and intellectual labor, as opposed to the hands-on work they are accustomed to. Despite these challenges, the importance of a crisis plan cannot be overstated. #CrisisPlanning #FamilyBusiness #LegacyProtection

Tips for Receiving Feedback in a Family Business We’ve talked before about the importance of giving and receiving feedback in a family business. Now, let’s dive into some tips on how to receive feedback effectively. ? Listen Actively: Pay full attention to the person providing the feedback. Avoid interrupting and listen to understand, not just to respond. ? Stay Open-Minded: Approach feedback with an open mind, even if it’s unexpected or difficult to hear. Consider the perspective of the person giving the feedback. ? Avoid Becoming Defensive: It’s natural to feel defensive, but try to remain calm and composed. Remember, the goal is to improve, not to justify your actions. ? Ask for Clarification: If something isn’t clear, don’t hesitate to ask questions. Clarifying details helps ensure you understand the feedback correctly. ? Reflect on the Feedback: Take time to reflect on the feedback you received. Consider how it applies to your role and what changes you can make. ? Thank the Feedback Giver: Express gratitude to the person giving the feedback. A simple thank you shows that you value their input and are willing to improve. ? Take Action: Implement the necessary changes based on the feedback. Show that you are committed to growth and improvement. ? Follow Up: Check in with the feedback giver after some time to discuss your progress. This shows accountability and dedication to continuous improvement. Receiving feedback well is crucial for personal and professional growth, especially in a family business where relationships are key. Let’s embrace feedback and strive for excellence together!

The ability to give and receive feedback is crucial for success in a family business. Unfortunately, we often avoid it because we fear it might be perceived as mean. As our moms told us, "If you can't say something nice, don't say anything at all." While that’s great advice for a 7-year-old, it’s terrible advice for adults. Feedback is not just essential; it's a catalyst for our personal growth. It enhances our self-awareness, enabling us to recognize areas for improvement on our own, and it's a key to unlocking our potential! Feedback also helps us improve our skills. There was an individual working in his family business who always believed he was doing a decent job, but family members thought otherwise. Withholding constructive criticism had deprived him of opportunities to perform better. He believed he could have improved if he had known about the issues earlier. Moreover, feedback is not just about business; it's about relationships. Honesty fosters closeness, while silence can create distance and harm. When feedback is given and received well, it brings us closer together. It's a testament to our commitment to each other and our shared growth.