Family Business - Evolution or Revolution?
Updated: May 1, 2022
Fail Often, Fail Fast, Fail Forward with Team Coaching
“Only 13% of family businesses last to the third generation.” - Big in Family Businesses
Revolution #1: Feeling devalued as an employee in a "Family Owned Business?" And it’s your family!
Family businesses were, and are, built on the need for a steady, reliable income in the face of challenging years of startup and economic changes. A great grandfather, father, mother, or extended family started this business out of the love for their family.
Looking back over this century, the ebbs and flows of economic recessions present an even more significant challenge to the success of the family-owned business. Their honorable drive, and focus to get the business off the ground was steep, and, still is, risky. Genuine care for their employees was the foundational value that drove loyalty and inspired employees to share a shared vision for each other. There were toughness and pride allowed them the persevered when the chips were down.
The landscape for family-owned businesses in the '40s looked different than it did in '50s, and the '60s. The bottom line for family businesses - it's stressful! Focused on putting food on the table. Providing a better life for their children, and the next generations get tougher as the business gets passed down to the next generation. Why? Experiences they had as a child will dictate their leadership styles. The family dynamic may also change when the family business is upset when other family members take the helm and the infrastructure changes. Everyone is affected in some way or another, negatively or positively.
If you are in a family business and you have haven’t taken the time to do a great inquiry with employees both family and non family members to best understand their needs, it creates behavior that robs efficiencies, process improvement, and revenue generation. Regardless of what generation you were born into, each has one thing in common, they all want to feel valued and heard, and members from every decade can leverage their wisdom and innovation to build a stronger culture for higher performance if they are brave enough to step out of the "comfort zone."