Studies have shown that family businesses are more resilient than non-family businesses. The reason for this is that family businesses are better able to take a long-term perspective and focus on the benefits and legacy for future generations. However, the most important factor in this longevity is core family values.
Core family values, similar to core business values, see to not only managing the assets and the overall performance of the business, but also the family’s most important heritage. These are the values passed down from one generation to the next. The values of each unique family are instrumental in creating a strong sense of identity within the business.
By having shared values, family members are able to create and maintain a strong, unified vision that allows their business to continue to grow through the years. These core family values allow for the creation of a strong vision which is extremely important to running a successful operation.
Highlight Your Values. What are the core principles that guide your family business? These could be anything from honesty and integrity to community involvement. Once you have identified your values, make sure they are communicated to everyone in the organization from top to bottom. Examples of company values could be a commitment to innovation or environmental sustainability or a focus on employees. Then think about how the business has developed over time. How have the values maintained or shifted?
Craft Your Vision. The vision of a company is its long-term purpose, based on the core family values. This could be anything from becoming a market leader to creating a sustainable business that will benefit future generations. The family company’s vision should be the measuring stick with which decisions are made. Whenever a new opportunity arises, you should be able to check it against your vision to see if it is the best fit. Once you have defined your vision, make sure it is communicated to everyone in the organization
Define Your Mission. A company’s mission is slightly different than the vision, rather than setting your purpose, the mission is about what you intend to accomplish. This could be anything from providing quality products and services to making a positive impact on the community. A better way to view the difference is the vision is what you see for the company, while the mission is what your company does. Once you have defined your mission, make sure it is communicated to everyone in the organization
What are some of the values that guide your family business? What is your long-term vision for your family business? What is the mission of your family business?
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Key Takeaways:
- Family businesses are more resilient than non-family businesses because they can take a long-term perspective.
- Family businesses need to have a clear understanding of their values, vision, and mission in order to be successful.
- Communicating your values, vision, and mission to everyone in your family business is essential for creating a strong foundation.
