www.challengesinc.com                                                                        April | 2010    

6 Questions to Ask and 6 action steps to take

"When people talk, listen completely. Most people never listen"
– Ernest Hemingway

"As a family in Business we have worked together for over twenty-years and we still can’t seem to get on the same page. What can we do?" We are asked this common question by the majority of families in business we meet. The best way to begin is to ask six simple questions that will help to identify the roadblock to getting on the same page. These six questions are:

1. Does the attempt to address family & business issues turn into conflict and anger?
2. Do family members make major business decisions without involving other owners?
3. Do family members treat the family business as a sole proprietorship instead of a family owned business?
4. Is it almost impossible to get consensus?
5. Do family members put off or ignore requests/opinions of other family members?
6. Do family business meetings turn into voicing of criticism and blaming of others?

If you answered "yes" to three or more of the above questions there are some serious communication problems in your family business. These communication issues indicate serious warning signs that your family business is in serious trouble. If they are ignored such issues can place your family business in the growing category of failed family businesses.

In the past two years most of the family business environments have had to struggle to keep their companies going. Cutting costs, including laying people off when they never had to before, keeping a much closer eye on their cash flow and reacting faster to the changes in the market have been the keys to survival. Unfortunately many of family businesses have survived by cutting costs and living with greatly reduced sales with little or no improvement in their family business communication and decisions. The positive answer to all six of the above questions emphasize the fact these family businesses will not be ready or able to react fast enough as the marketplace begins to "loosen up." Decisions will have to be made faster, everyone will have to be on the same page and support a strategic focus for the family business to gain what they have lost and to grow again. Many family businesses really believe they can continue to work as they always have and be just as successful in the future. These beliefs will be the beginning of the end for those family businesses. Sure many members of the family business will lull themselves into complacency when the little "up spikes" in the business happen and will blame everyone but themselves when it declines. The only way to improve communication that will allow for the decisions to be made that are in the business interest of the family and the business, is to make a conscious commitment by all of the family members in business to actively work on the following six actions steps. These six steps are the start, they are not the end of the commitment. We will discuss the next series of steps in future newsletters. The six action steps are:

1. Commitment of each member of the family business to actively work on getting the answers to the six questions (listed above) to be "no."
2. Have the best interest of the family and the family business before self-interest.
3. Avoid interrupting when others are speaking. Really listen to what others have to say and don’t be thinking about your "rebuttal" while they are speaking. Really listen.
4. Get over past hurt feelings. The biggest barrier to positive family in business communication is the inability to say "I am sorry" and the refusal to accept it and move on. Forgiving does not mean forgetting. It just means that you are going to let go of the need to get even.
5. Earn the trust and respect of each of your family in business members. Understand what the roadblocks are to this respect and trust and make the commitment to earn it back from other and to give it more freely to the family members in business.
6. Set the example. Too many times family members in business are waiting for the "other" family members to take the first step. This waiting usually increases the stress, tension, lack of respect and trust that each family member is waiting for. It is up to "YOU" to take the first step. Without it, conflict will continue, income will decline, family relationships will deteriorate and the business will not be as successful as it should be. Know what is really important and make the personal changes to make it happen.

Good communication within the family business takes work as most worthwhile things do. I find it interesting when people will spend more time on their hobbies. They spend quality time to honing the needed skills, committing to do whatever it takes to be better at it and yet devote nothing or next to nothing to working on interpersonal family relationships and communications. Yet, families in business who do "sharpen" their relationship, communication and interactive skills, change the way they work and manage, with the proven results of a more cohesive, successful family business. Where are you going to spend your time? Contact us. We have been helping family businesses like yours with over 80 years of experience.

Check our web site at www.challengesinc.com in our archived newsletters for related topics dated: February 2008, March 2008, September 2008, April 2009 and October 2009.

Contact us we know we can help: Jim@challengesinc.com, ann@challengesinc.com, sboros@zoominternet.net all in Pennsylvania and LaurenOwen427@gmail.com in Seattle, WA.

Check out our next FREE WEBINAR:

C.H.A.L.L.E.N.G.E.S. Webinars FREE once a month programs will arm you and your family members with the knowledge for identifying and effectively dealing with the challenges facing your family business.

April 13, 2010 “Ahead of the Innovation Curve”

Why and how to Achieve it in Your Company

Presenters: Guest Speaker: Jim Shaw, CMC, Shaw Resources

DESCRIPTION: During the past decade, innovation has stumbled. In the past, those that didn’t innovate “ahead of the curve” could “get by” at least for the time being. In today’s economy and in the economy of the future, failure to achieve innovation ahead of the curve will increasingly result in many more business failures. This program will allow you to gain an understanding of innovation and how it relates to your business.

“Innovation” Registration Link: Click Here