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It can be a delicate balancing act between the family and business when it comes to family-owned businesses (FOB).
This was one of the main takeaways from the first of three workshops organized by the Honey Bun Foundation focused on family-owned businesses.
Facilitated by Dr Lawrence Nicholson, family-owned businesses represent a huge economic force in economies across the world.
Accounting for about 70 per cent of global GDP and 60 per cent of employment. The largest retailer in the world in 2023 was a family-owned business that outperformed Amazon. This company that many of us know of is Walmart.
In a very interactive first workshop that focused on the governance structure of FOB, participants examined the pros and cons of employing one thought process over the other, which highlighted a balance that must be struck.
This is extremely important in battling the stereotypes surrounding FOB, which include nepotism, family feuding, letting emotions run the business, and a lack of innovation.
In the session, Lawrence noted that a good, solid governance structure is one that provides direction for both family and business and that family issues, as much as possible, should be managed by the family and the family council so that the board can focus on ensuring that the firm is well-positioned for the future.
This segue in the presentation and discussion created the perfect transition for the next session, which takes place virtually on July 17.
That session will focus on maintaining this balance through the creation of a family constitution.
The constitution outlines the rules of employment, compensation, and leadership, some of the major contentions in FOB that can impede the running of a harmonious family and business.
Original Article: https://our.today/family-owned-businesses-urged-to-balance-family-and-business-dynamics/
