In 2014, Ernst & Young (EY) conducted a survey of the worlds largest family businesses. These businesses came from about 2,400 family businesses from the top 21 global markets including the United States. EY concluded that businesses are highly important to their respective global, national and local economies for the reasons you might think. They are tax-paying citizens who steadily employ other citizens and return their wealth to the owners, employees, vendors and the community they live in. In this article, I am summarizing their findings about what makes these family businesses so successful. If you adopt practices such as these, you may see your business in a better position in the future.
87% identify a successor
Succession is a continual, perpetual process that protects a business from the loss of a key person with unique knowledge and skills. With more than one capable leader, your business is ready to survive the event that would end other businesses.
70% have a woman in consideration
Having a woman as a leader in your business, after years of male leadership, can lead to a culture change that is a minty fresh breath of air for employees and customers.
90% have a board of directors
Let’s face it. It’s hard to go it alone. Nobody says it should be that way. Having a supportive team assembled for your board can mean more decisions more quickly and better decisions more often. Like editing your own writing, business owners often find it hard to critique their own decisions before they make them.
90% have regular family or shareholder meetings to discuss the business
Having regular discussions about the business tends to provide a forum that results in caring for the business and caring for each other.
76% include “Family Business” in their branding
Significant research about publicly branded family businesses indicates employees and customers see them as worthy of trusting.
81% help the community in some way
However you may choose to help your community, you are setting a tone with your employees and customers that you are committed and care about what’s happening to the people in the community.
83% plan to increase cyber security spending
Cyber security is a growing issue. A good strategy is to leverage cloud offerings provided by the cyber security experts within your cloud partners. The cost is a fraction of doing it your self, and the protection is much greater.
The survey by EY summarized in this article is titled "Staying Power: How Do Family Businesses Create Lasting Success?”
Prize Performance LLC is a consulting firm specializing in accelerating business performance for small to medium sized businesses. Contact Prize Performance LLC today to take your business to new places!