How to know when it is time to get help for your family business governance.

Most family run enterprises hold onto the past to preserve family values and honor the vision of the founders.  This does not mean you have to run the business the same way the founding generation did.  “We have always done it this way” does not need to be your mantra.  Don’t wait until there is conflict to make changes.

Experts say “Over time, a family begins to experience signs of stress and decline in their governance system. These strains are inevitable and indicate the need for a new intervention. This does not indicate that what the family is doing is wrong or a mistake. Rather, it indicates a need to adapt to a more complex reality.”

But how do you know when it is time to seek assistance?  Look out for the warning signs. 

Stale leadership. The leaders fell they cannot leave because they don’t see a new group ready to take their place and feel stuck.

Loss of energy and shared purpose. Family attendance at meetings and events declines and family members stop asking questions.

The Family grows too large and distant. Cousins do not know each other well, and the focus is on the cohorts who do not live close by rather than the family business vision as a whole.

Unclear succession plans.  There is no plan, process or timetable for succession, and the rising generation feels no invitation to participate or sees no path forward.

Inability to celebrate differences. The family believes that to stay devoted to the family legacy, they need to support old traditions. Diversity of thought is not welcomed.

Change can be good and necessary.  You can still hold on to the family legacy while modernizing and adapting from the historic structures put into place.  It is never to early to start looking at improvements.

Call a family meeting, include all generations, and get everything out on the table.  Enlist the help of outside council or a consultant to keep the conversation honest and moving forward.  It will take work, but then don’t all relationships deserve energy!

If you would like to discuss how Lovelynn Ivey Consulting can help you with these difficult conversations, schedule a discovery call today.