Download The Three Cs of a Successful Family Business: Commitment

The Three Cs of a Successful Family Business:
Commitment, Communication and Caring
By R. Phillip Colon, Ph.D. & Jerry I. Kleiman, Ph.D.
Business plans, succession plans and disaster plans all contribute to
the success of a family-owned business. But of equal importance
and frequently overlooked are the three factors which underlie the
functioning of the successful family business: commitment,
communication and caring-the three Cs!
A frequent perception by the “older generation” of a family
business (usually the founding generation) is that the “younger
generation” is not committed to the business the way they should
be. This is often translated as, “They haven’t put the blood and
sweat into the business the way that I had to. They have it easy.”
What the family business needs, current day, is the necessary
commitment by those involved with it. We define “commitment”
as “the willingness to do whatever is necessary, as agreed
consensually, for the stability, growth and well-being of the
business and the family”. In businesses where commitment is an
issue, the younger generation often experiences themselves as
disheartened employees, and are perceived by the older generation
as “- spoiled by accident of being born right.” The bottom line is
whether or not all concerned can modify their attitudes to suit the
needs of the business. The generation in charge has to make the
commitment to invest the time and energy to engage and develop
the younger family members and to see if they truly are viable
candidates for succession. Procedures and programs can be
instituted which will help objectify the decision about who is the
most viable candidate for succession . There often are unrealistic
and conflicting expectations on everybody’s part about
performance and succession. For example, the president of the
company may feel that that the younger family members have to
prove themselves, yet may not be giving them the opportunity to
do so. Likewise, the younger generation may be holding back on
their commitment because of resentment or their own uncertainty
about how to express their ideas and creativity.
For some “communication” often means “shut up and listen.” In
order for there to be effective communication, those not speaking
need to listen and try to fully understand what is being said before
responding. How many of us half listen to what is being said, reach
conclusions before the other person is finished, think about how
we are going to respond while the other person is talking and don’t
fully understand what the other is saying. The effectiveness of the
communication depends on genuine understanding of what is being
said. Taking the time to ask questions for the sake of clarification
can greatly enhance understanding. If what is being said is
particularly important, the listener can rephrase the communication
to make sure that they “got it,” thereby reducing the risk of
misassumptions. Of course, all participants in the conversation
need to be involved in “active” listening in order to have effective
communication. Good communication skills can prevent many
tensions, foster increased involvement by those in the business and
contribute to a feeling of caring.
After witnessing fistfights, verbal abuse and sparing, malicious
interchanges, and/or unscrupulous behavior by members of the
family in business together, the need to include “caring” as an
important component for a successful family business became
apparent to us. We have experienced well mannered, seemingly
concerned individuals try to engage us in an effort “stick it” to dear
old dad (or mom) in the name of “good business” or other such
rationalizations. Even when not so extreme, people can and do
engage in interpersonal interchanges that defy a sense of love or
even caring for other family members. Caring is simply defined
as remembering that the other person is family, someone that is
important, someone to be valued, and respected and that the
business is central to the well being of the entire family.
Families in business together have to continually work on their
relationships in order to keep both the business and the family
healthy and viable. The likelihood is that if you learn and practice
the three Cs, Commitment, Communication, and Caring, you will
be successful in both.