All in the Family
Having spent an enjoyable Mother’s Day with my family, it gave me pause to reflect on family businesses and what makes them thrive. As the owner and administrator of The Cedars, a successful health care provider for over 45 years, I am fortunate to see a third generation join me in its operation. In fact, my husband and all three children play vital roles in our day-to-day operations. This is not often the case, as recent statistics from the Small Business Administration cite that while family businesses make up 90% of business enterprises in North America only 12% make it to the third generation. So what are the secrets to success?
Trust is the Key
I have read many articles about family firms and the major takeaway is that ‘trust’ is the central component to sustained success. Trust comes naturally to children. For adults, however, trust needs to be earned and it comes from communication, transparency, reliability, predictability, shared goals, emotional bonds and a sense of fairness. Developing and nurturing such a trust over time is the key component to flourishing family-owned companies.
Keys to Family Business Success
Start at a young age and learn the business from the ground up. I literally grew up in a nursing center and began as a nursing assistant at Golden Crest when I was a teenager and my parents were the owners/administrators. Over time, I learned what makes each department operate effectively and why every employee should be treated as a team member.
Encourage children to pursue their education and dreams. While my kids have always had the freedom to choose their own career path, I am fortunate that at this time they are each gaining experience and new perspectives while working together.
Work harder than the other employees. It is essential that family-members get their “hands dirty” to gain respect of the staff. Family employees are held to the same level of expectation as everyone on staff. From morning rounds to meal passing, all employees work side-by-side to ensure the highest level of service.
Empower your employees. Treat your employees like family by appreciating and nurturing their talents. This creates staff longevity and ensures that everyone is on board with your vision. At The Cedars, all of our senior leaders have been with us for ten years or more.
Be able to quickly switch gears from family to employee. Conflict can be avoided when there are clear leadership roles and everyone knows who is responsible for what task. Nurturing talent and developing skills to find the best fit role for each family member helps to maintain professionalism and accountability.
Evolve the business and be open to new ideas. While I may have the experience that comes from years in the business, my children have fresh eyes, new information and are able to contribute invaluably to our success.
Leave business at the office. I think this important advice goes without saying.
Good communication is essential. In my opinion this is the most important key. It is so important for family members to be upfront with one another. Set up regular meeting to discuss goals and aspirations both within and outside the family business. Make sure there are plenty of family rituals where business discussions are not allowed. Ensuring that the bonds of family ties are in tact should always be a priority.
The bottom line: family businesses are special. In the words of Lee Iacocca, American automobile CEO, “the only rock I know that stays steady, the only institution I know that works, is the family.”