The Three Cs of a Successful Family
Business:
Commitment,
Communication and Caring
By R. Phillip Colon, Ph.D.
& Jerry I. Kleiman, Ph.D.[1]
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.
[1] Drs. Kleiman
and