Boundaries are important for parents and family members working together. Done well family business should draw families closer and enhance the personal relationships between generations. But too often a lack of intention about the direction of the business and the roles played by each family member leads to stress and strained relationships

If I were to ask you what the two most important ingredients for growth in business are, what would you say? Think about it for a second.

You’re probably thinking about sales, efficient operations, better marketing, great customer service, or better employees.

Though these are often present alongside growth they are not the driving force behind growth. The two most important ingredients for growth are a compelling vision and clearly defined values. Although these are intangible, they are respectively, the destination you grow towards and the solid foundation that will support all that growth.

In our previous video on the topic of family business we answered the question, “How do I know when they’re ready to take over the family business?” In this video we move from theory to practice. Plenty of parents know the next generation is capable, but actually letting go? That’s another matter.

There are three stereotypical approaches to managing the transition:

You’ll get it from my cold dead hands.

Just take it!

No decision

Complacency is a company killer. It’s exactly what led Kodak to bankruptcy in 2012. What role did complacency play? Well, many years before its ruin Kodak snubbed the invention of their own engineer, Steven Sasson. He invented the digital camera technology in 1975, and rather than embracing the novelty, Kodak dismissed it. Who knows what led to Kodak’s complacency? The fact is, it crept into Kodak’s executive arm with disastrous effect.

Parents are never quite sure what time is the right time. In this series we tackle the first of seven strategic questions many family businesses struggle to answer. Of all seven this is perhaps the most common.

How will I know when my kids are ready to take over the family business?

Effective conflict resolution is a necessity in every business, no matter how big or small. Sooner or later a ball will get dropped, a piece of information will be miscommunicated, a customer crisis will develop, a promise will be broken…the opportunities to resolve conflict are nearly endless.

Organic is a buzzword these days. Everything from paper products, produce, beer, and textiles can be labeled organic. But what does organic really mean? Organic refers to the “methods that produce or involve production without the use of synthetic fertilizers, pesticides, or other artificial agents.” Why does this matter? Because organic products are thought to be healthier than conventional products. So, should you make your business organic?

Culture is the average of every individual’s values in your organization. This means that if the majority of individuals in your company desire to make a name for themselves, the culture will reflect that “dog eat dog” mentality. Likewise, if your employees value unity, conflict resolution is a skill many of them use on a daily basis. No matter what, culture exists. And though cultures vary, two broad types of culture separate every organization: transactional or relational.

It is easy for business owners to fall into the trap of thinking they need to be the one in charge. In a recent planning session a large ownership group had to decide which roles various shareholders would fill. With seven owners this $5 million business did not have enough C suites for everyone to have a corner office. More important, they were keenly aware that their long-term strategic plan required current employees to move into leadership roles as soon as possible.

The role of customer satisfaction in business is undisputed. Businesses exist because they satisfy a customers wants and needs by delivering products and services for a profit. Without satisfied customers, businesses fail. Yet, despite its importance, predicting customer satisfaction is surprisingly hard to do. There has got to be a better, less dynamic, variable that accounts for satisfaction and that is standard across businesses.

What if I could show you a way to instantly recognize trends in your business, trends spanning anywhere from years to months to days? If you are like most business owners, this newfound ability would forever change the way you manage the financial reporting coming out of your company. It will reduce the time it takes to understand major financial and operational indicators and allow you to communicate that information to key managers and employees without having to explain the first debit or credit.

A few weeks ago I had lunch with the owner of a creative agency. We talked about the difficulties of work related to managing customer expectations. He shared the story of a customer who came to him wanting a complete re-brand for a community district. The project required designing unique street signs, facilities signs, park benches, trash cans, etc. All to create a distinct atmosphere for the district.

Can you believe we are already in July? It seems hard to believe half the year is in the rear view mirror.

Since your second quarter is over let me ask: how are you doing? Did you hit your quarterly goals or are you still catching up from the first quarter? Have you even thought about your goals for Q3? Are you on track for your year? If you’re like most of us, my guess is that you’ve still got some work to do.

Do you ever get frustrated that your people just aren’t performing? No matter how many times you explain, no matter what kind of training resources you supply, no matter what threats you make…they just don’t follow through. My tendency in these situations, especially when listening to clients talk about the same struggles over and over again, is to ask “should this person even be on the bus?”

Weekly check-ins are one of the main tools we use with clients to make sure that the strategic plans we build with the team actually get executed by the team.

That planning process starts with identifying the vision that leadership wants to pursue, and then identifying the one or two strategies that the team can work on over the next 2-3 years that will move us closer to the realization of that vision. Strategic planning is a lot fun, but it doesn’t actually make anything happen. For that we need to focus on execution.

We are smack dab in the middle of tax season with only a couple of weeks left before the individual filing deadline. That means S corporation business owners all over the country are wringing their hands, hoping for a great March and April to pay their tax bill. This annual ritual of scrounging for cash to pay last year’s taxes is a huge distraction for businesses. And it leads to all kinds of shenanigans.

There is a famous quote ascribed to Henry Ford.

"Thinking is the hardest work there is, which is the probable reason so few engage in it."

I was curious so I went looking for the source. The quote is from an article Ford wrote for the April 1928 issue of The Forum. I would encourage you to read it. Apart from his thoughts on "thinking" it is worth the read to see how closely the issues and debates of his day match our own. You can view page images of the original periodical here. But back to the quote.

Last week I talked about the difference between mission, vision and values. Of the three, we always start with vision. And we do so for purely practical purposes. If a business doesn’t know what it wants to accomplish it is impossible to be intentional about achieving it.

But vision statements can be tricky things to write. Everyone seems to have a different opinion about what they should cover or how inspiring their prose should be.

I was in a meeting the other day and the guy next to me, who runs a very successful company, said "you know, I've just never taken the time to do the mission statement. I know I should, but I don't quite know what to do."

Mission, vision and values are great tools for communicating what you are about and helping other people understand what you are trying to accomplish. Any business that struggles with communication should start here. It will make a big difference in how you talk with employees, customers, contractors and everyone else you do business with.

In today's video I share some of my thoughts on todo lists and why I think shared lists are a bad idea. I want to cover that topic here and address what is sure to be an often raise objection to my point of view.

Shared todo lists are a bad idea because as a rule they allow those delegating tasks to abdicate two primary responsibilities of management.