The family may know you better than anyone else, but should you be in business together? Fraternal partnerships have a long history of great successes, like the Wright brothers, and great failures, like the Kellogg brothers. There are even more dramatic examples of sibling rivalry that spirals out of control and leads to a full-fledged war, such as the dissolution of the relationship between the Kellogg brothers or the Seagram Bronfmans. In some cases, ownership is limited to siblings who work in the company. Increasingly, however, siblings who do not work in the company own shares by donation or inheritance. An appropriate balance must be found between the owners of the business and those who are not in the business. The need to strike this balance underscores the importance of clarifying the differences between ownership and management decisions. The process requires a good understanding and respect for boundaries and requires strong communication skills. Owners of siblings who do not work in the company need to understand that they cannot tell management how to do their job, but it is essential that siblings who work in the company realize that they are accountable to all owners. All homeowners should work together to develop a common vision, goals and understanding of the benefits of employment and ownership. The specific actions that sibling teams should pursue are: Finding the answers and sharing these actions allows siblings to find their voice and purpose, and sets the stage for many other decisions they need to make. Getting the resources you need is critical to the rapid expansion and success of the sibling partnership. Take the Cook family, co-founders of myYearbook.
In the spring of 1997, I wrote an article in Family Business called “Deciphering Sibling Behavior” (see article library under www.familybusinessmagazine.com). Nine years later, the subject still resonates with family entrepreneurs. Building strong sibling partnerships is one of the biggest challenges for entrepreneurial families. Who knows what else they would have created if their ego and disputes had not only affected the development of their products, but also destroyed their brotherly relationship. 4. Make decisions as a partner. In a fraternal partnership, it is important that you consult on the decisions that shape and influence the company, regardless of your clearly defined roles. Partners need to have a say in what happens not only in everyday life, but also in the scope and long-term planning of your partnership. Initially, siblings may only be able to set goals for their partnership, e.B.
develop the policies they will use for decision-making in the future. Another example of a goal they could set for themselves could be to organize a family retreat to realize their fundamental value of maintaining family unity. Once the fraternal team is in a position of authority, siblings can also participate in the company`s goals. If, for example, family members focus on growing the business, they can decide together whether it is better to pursue this through acquisition or organic growth. While each family has its own mission and goals for the company, successful fraternal partnerships have common processes for making such decisions. We encourage siblings to hold regular meetings to discuss future roles, policies and goals, and to work as a team on communication skills to reduce and resolve conflicts and maximize long-term effectiveness. Are you a partner of your siblings? Tell me about this in the comments or tweet me @furiouslymandy with the hashtag #committed. If you are willing to share more details for a survey I am conducting, please fill out my questionnaire. The success of the fraternal generation depends on the team`s ability to focus on something greater than each brother`s concerns, such as the well-being of the company or family or their mission. This means a certain loss of autonomy, as decisions must be made in collaboration with others, taking into account the priorities, preferences and concerns of a number of stakeholders.
If some or all siblings hope one day to “be able to make all the decisions like Dad,” they will be disappointed. To succeed, a fraternal partnership must be a collaboration of partners, not a test of will. Like any meaningful partnership (e.g. B, marriage between brothers and sisters can only succeed if there is a give-and-take. siblings must be willing to give up some of their individual freedom for the partnership to work. As one of our clients explained during a discussion about his corporate governance ambitions within his family, “the role I end up playing is much less important than the success we manage to have as a team.” Don`t take your brother or sister for granted or assume that just because it`s a family, they can read your mind. Effective and frequent communication and good listening will take you far in your partnership with a brother or sister. Writing down expectations and blaming each other in writing for commitments is a very important aspect to ensure your continued success in business and family. It`s better to bang your head at the beginning of a partnership and test your true ability to work together than to be kind, put expectations on the back burner, and expect the details to be clarified later. Just because one sibling is the business side and another is the creative side doesn`t mean business decisions should be made without making them beyond the creative side of the partnership and vice versa.
As a serial entrepreneur and management consultant, I am interested in the unique dynamics of business partnership. Follow me to learn more about my personal experience with partnerships and learn more about how other partnerships set the groundwork for collaboration and compensation. how to promote harmony and resolve conflicts; and the tools business partners use to grow their relationship as their business grows. As you and your siblings work to clarify your common goal and expectations for the family business in the future, remember that these discussions will effectively launch your partnership. For many siblings, this is the first time they have sat at a table at eye level and discussed their hopes and fears for the future. .