Business management theories are often put to the test in family businesses. Emotional issues may derail a logical, well-constructed business plan. One way to avoid non-productive discussions is to schedule a business-planning retreat:
- Don’t have a lengthy to-do list. It’s easy to underestimate the toll from the emotionally exhausting task of sorting through family-business issues. Be sure to schedule frequent breaks. Set aside one full day for relaxation and strengthening family bonds. Consider catering the event so everyone can focus solely on the discussion.
- Pack a large notepad and easel. This ensures free-flowing ideas and concerns are captured on the spot and can be fleshed out and codified later. Ideas should be developed into policies that do not strangle creativity.
- Revisit your organizational chart. It’s a good idea to tackle this task every three or four years, or more often if the company has gone through a significant expansion. Business processes can undergo rapid change — so much so the existing corporate organization may lack the flexibility to respond to the current business environment.
- Broach those uncomfortable topics. In the fray of day-to-day decision making family relationships may become strained. There are two ways to approach those uncomfortable topics during your retreat. You can choose to clear the air upfront, or you can wait until family bonds are strengthened through pre-scheduled pleasurable and relaxing activities. If some family members arrive with a tense demeanor, it might be more productive to tackle the tension first with a fun outing.
- Bring in an outsider. When existing fault lines are already hampering a family business, an outside consultant can be of great value to a family-owned business as the consultant is not emotionally intertwined in the business. They have a clearer focus and the ability to address uncomfortable issues.
The bottom line: Clearly defined roles and corporate polices ensure a family business doesn’t become embroiled in petty grievances that derail their business dreams.