Does Your Business Function Like a Family Business?
Does your business function like a family business even though it’s not? In his Business Journal article, James Lea says that some small businesses share similar characteristics to that of a family run business.
“For example, both the nonfamily family business and the true family business may rely on informal, unstructured decision making processes. Decisions are made exclusively by the senior person in the business.
Decisions may be made opportunistically or under the pressure of a crisis instead of in a timely, strategic fashion. Sometimes there’s not a shred of evidence on the table to help illuminate the issues. Sometimes there’s no decision. The issue is talked about until everyone loses interest and wanders away to keep on doing business as usual.”
Among other shared characteristics might be:
- the lack of a true management structure, and as the business grows nothing is put in place. Record keeping and reporting are often handled only in a crunch.
- interaction between staff is also unstructured and can get off track easily
- accountability at all levels is often soft or non-existent, often just to appease personalities and overlook lack of competence
- lack of a clear succession plan
On the positive side these types of businesses exhibit strong loyalty among the group and to the company.
