When you’re the leader of a family business you make regular decisions that can have a huge effect on your business and family.
You’re often faced with competing priorities.
This simple concept can help you make better decisions for your family business, maximize opportunities and minimize risk for your business and your family.
The family and business are obvious parts of this model but an often overlooked aspect is the role ownership plays.
The leader in each circle of this model has an important role.
The role of the family is to keep the family strong and healthy. The leader in this circle is often responsible for family traditions, reminding people to stop talking about the business at family events. I often refer to the leader of the family as the Chief Emotional Officer.
The role of the leader of the business is to run the business according to the wishes of the ownership group. In the healthiest family businesses, this person needs to run a professional business where no one is guaranteed a job. This person's title is often president, CEO or general manager.
The role of the leader of the ownership group is to make sure that opportunities are maximized for the family and the business and that risk is minimized for both. This can include bringing on a board, making sure there is ample insurance, ensuring that the right person runs the business and making sure that the needs of the family are understood and met. This leader is sometimes the head of the family council or a person chosen by the family to lead the owners.
When you get clear about the kind of decision you're making, you will make better decisions.
Make a list of your top five concerns in your family business - put them in the appropriate area on the three circle model and make the decision from that perspective download the tool here
Call (612) 220-6559 or email Sara firstname.lastname@example.org and sit down with her for 90 minutes to fully understand this model and how you can strengthen your decision making