In any administrative process there is always a risk of falling into situations of excess “familiarity”, where the objectivity in the supervision and evaluation of the tasks assigned to the members of the organization is affected. This causes those charged with governance of the organization to become permissive and even protectors of bad practices and inefficiency.
At that moment, those in charge of the government consciously or unconsciously fall into complicity. To avoid this, codes of ethics and conduct are created, as well as policies aimed at avoiding these behaviors.
If this happens in large organizations, the problem becomes enormous in family businesses. Factors such as: parents over protectors, favoritism, family and personal conflicts, unfounded expectations, etc., can seriously jeopardize the operation and assets of this type of company.
All of the above leads us to conclude that these types of companies also need government measures that help, not only to prevent problems, but also to grow and progress. Nothing sadder than the phrase “Rich grandfather, millionaire father, miserable grandson.”
The government measures of a family business have to start with the rules that the family imposes on itself, which allow the company to be shielded from any family conflict.
The first recommendation from experts is to create a “family council” in which all members of the family of legal age participate, whether or not they are interested in actively participating in the company. The first thing that this council decides are the rules of communication and family participation. Among other:
- Total respect for all other members and their opinions, regardless of whether they are substantiated or not.
- Respect for the times that each member of the family expresses their points of view and ideas.
- Avoid using offensive vocabulary and ironies to insult the other.
- Formality in the scheduling of meetings and their compliance.
- Procedures for integration into the family council either by reaching the required age (18 years) or by marriage or other kinship. The condition is that the members are participants in the family patrimony.
The topics that the family council should include in its meetings are, among others, the following:
- Current financial situation, including any matter related to availability, as well as financial obligations.
- Distribution of monthly resources among family members.
- Future plans and investment opportunities.
- Determination of family members to participate in family businesses, the arguments for and against and the results expected from their participation.
- Position or positions to be taken by the family regarding matters to be discussed in the boards of directors of family businesses.
- Specific aspects that family members have in relation to business or property matters.
Once the family council is installed, it will be in charge of evaluating and discussing the characteristics and capabilities of all those family members who want to participate in the business. This means that the professional skills and commitment aspects should predominate over the sentimental ones.
Reference-www.eleconomista.com.mx