When many people think about family businesses, they associate them with fragility. After all, big-box stores shuttered countless mom-and-pop shops on Main Street, right? In my experience, this line of thinking doesn’t hold water. I’ve found that most family businesses are agile, not fragile.
Family Business Misconceptions
A persistent misconception paints family businesses as places full of conflict where incompetent family members get their way. According to these tall tales, ego, and history matter more than making money or creating a great business strategy.
Don’t believe the hype. These tropes make fun headlines in the news, movies, and pop culture, but my experience tells another story.
The family business leaders I know make quick, effective decisions. These mom-and-pop operations employ competent people who care deeply about each other and the company’s mission.
How to Operate a Great Family Business
If you’re like these leaders, I bet you strive to make your business more agile than fragile too. Did you know companies Running on EOS™ learn how to gain control of the Six Key Components™ of their business? These components are Vision, People, Data, Issues, Process, and Traction.
Let’s take them one at a time.
The Vision Component™
The Vision Component is getting everyone in the organization 100% on the same page. Family business leaders use the Vision/Traction Organizer® to share their vision. Then they review it quarterly to make sure it keeps up with the business.
The People Component™
Leaders of great family businesses know they can’t achieve their vision without great people. The People Component is assembling an outstanding team that shares the company’s core values. The Accountability Chart™ helps leaders look ahead and build the right structure and define the roles necessary to achieve their goals.
The Data Component™
The Data Component is running a business on facts, figures, and objective information. This cuts through all the feelings, egos, and opinions to gain an absolute pulse on the business. Leaders of agile family businesses can use this data to respond to changes in the marketplace faster.
The Issues Component™
Leaders in great family businesses don’t run from their problems or ignore them. Leaders who are strong in The Issues Component are really good at facing problems head-on and solving them. The leaders identify the root causes of issues, discuss them, and move to solve problems, so they go away forever. This removes the obstacles holding a business back.
The Process Component™
Becoming more agile requires great family businesses to systematize what they do well to produce exceptional results consistently. Rather than creating complex documentation, The Process Component is about focusing only on the high-level core processes. Leaders focus on documenting the 20% of major steps of a core process that will get it 80% done.
The Traction Component™
Finally, agile family business leaders bring their visions down to the ground, which is The Traction Component. They use Rocks (quarterly goals) and a weekly Level 10 Meeting™ pulse to create predictability and accountability for their teams.
Make Your Family Business Agile Too
My best advice to leaders of family businesses: Don’t overcomplicate things. Focusing on these six areas will help your family business get and stay agile generation after generation.
How does your business measure up? When you take the Organizational Checkup™, you can find out!
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