factors of effective family business culture
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Drivers of Family Business Success
Effective Family Business Culture
Dr. John E. NeffFamily Enterprise [email protected], 2013
Agenda• Introduction• Model of Effective Family Business Culture• Model Components– Shared Vision (Direction)– Confidence in Management (Belief)– Learning Agenda (Development)– Role Clarity (Responsibilities)– Family Cohesion (Unity)
• Research Findings & Wrap up
Research Model
Family Firm
Financial Success
EFFECTIVE FAMILY
BUSINESS CULTURE
Shared Vision
Conf. in Mgt.
Learn & Network
Role Clarity
Family Cohesion
Factor 1 - Shared Vision
Leaders and Followers –• Aware of future vision• Meaningful to them• Inspiring and engaging• Guides action in ambiguous situations
Factor #2 - Confidence in Management
Confidence in Management
… Leaders Qualified… Required Abilities… Management capable… Achieved Success in Past
Factor #3 - Networking & Learning
• Personal Development• Industry/Market knowledge• Awareness of Wider Economic Environment
• HOW?– Networking– Professional Groups– Industry Associations– Personal Development
Factor #4 - Family Cohesion
Satisfaction with…• Help from family when
troubled..• Discuss common interests &
share problem solving…• Family accepts new activities
and life-style changes...• Family expresses affection &
responds to feelings of anger, sorrow, and love…
• Time spent together…
Factor #5 - Role Clarity
• Role Clarity (work role):– “My job duties are clear”, – “I know how much authority I have”, etc.
• Conflict in Family Business:– Task Conflict (What is right) – healthy debate– Affective Conflict (Who is right) – destructive to
relationships
Research Findings
Family Firm
Financial Success
EFFECTIVE FAMILY
BUSINESS CULTURE
Shared Vision
Conf. in Mgt.
Learn & Network
Role Clarity
Family Cohesion
Too Much Role Clarity?
Family Cohesion & Role ClarityInteraction – Unexpected Finding
• High Family Cohesion and high Role Clarity was associated with REDUCED financial performance…
Summary - Family Business Success
Effective Family Business Culture – • Shared Vision (Direction)• Confidence in Management (Belief)• Networking/Learning (Development)• Role Clarity (Responsibilities)• Family Cohesion (Unity)
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