Six good practices of family businesses

Many of the companies we recognize today as successful companies were family businesses. Most of them have managed to reach their current position thanks to the six good practices that we will tell you below.

Tous, Inditex and Mercadona began as family businesses, although today they are considered among the most important companies in our country. The key to their success is that they have maintained a strong structure. In this sense, it is important to keep in mind that in a family business two systems live in permanent tension (family and business), so if the structure is weak, any disturbance can cause it to collapse. Here are six good practices from family businesses

 

Good structure

As they explain from La Nación , to avoid situations that generate instability, “it is necessary to develop a structure that puts order in the company”, that is, institutionalize the family-business relationship with government bodies, grant them functionality, differentiate the areas of decisions, establish clear rules and incorporate communication and conflict resolution skills.

Separate family and work environment

Any family business that wants to succeed must follow a very clear rule: the family and work environment must be separated. In this sense, it is important to keep in mind that, as explained by Large SMEs , these types of companies are made up of three different areas: the family, the company and the legal society. Each of these areas has particular purposes and is made up of people with specific behaviors. It is essential not to confuse the roles of these different fields.

Independent directors

Another good practice of family businesses is to have independent directors, as these improve profitability. As Ricard Agustín of Family Business Solutions explains, in statements to El País , the ideal is that the directors “have no relationship with the partners at least until the fourth grade, who have the capacity to facilitate consensus, the trust of the partners and do not need to live what they are going to pay.

Communication

We also have to talk about communication, a key aspect in family businesses. In this sense, it is important to keep in mind that, as explained by Infojobs , “families that hide secrets or avoid talking about the inconveniences that inevitably arise along the way, fail.” Thus, the ideal is to listen to all members when they have problems, assume responsibilities, do not seek guilty and inform continuously.

Plan the succession

On the other hand, it is essential to plan the succession, always thinking strategically. If future scenarios are not built that help determine the ideal path for succession, complex events can occur when the time of generational change comes, which could jeopardize the stability of the company.

Have a family protocol

Finally, we want to talk about the family protocol , a document that includes the agreements reached by the participants of the process on the issues that are considered critical. It is one of the most powerful tools in the family business.

 

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