Lessons from the Successful Family Business World

The content this week contains thoughts on important lessons from the successful family business world.

Successful family businesses often start with the premise that hiring, promotion, and performance decisions regarding family members are made using objective criteria–they take as much “family relationship emotion” out the decision as possible. Their goal is simply to avoid letting relationship based bias or favoritism get in the way of what’s best for the organization.

Furthermore, and very importantly, they make sure all family members know this from the beginning, even before they start work. The expectation is stated and clear: Your position as a member of the family is not going to interfere with the best interests of the company.

From the very start, everyone understands that the best interests of the company are the first priority in making decisions and nothing else, not even family relationships, are a greater priority.

These family businesses understand something all businesses should. Bias toward individuals can, sooner or later, get in the way of business success.

The quote:

“Several companies have explicit policies against cronyism, with good reason. Hiring a family member simply for a relationship can be troubling and may not necessarily serve a company’s interests. But by and large, financial firms in particular commonly hire people who have certain connections, whether through family or a business relationship.” ― Andrew Ross Sorkin

Andrew Ross Sorkin. (n.d.). BrainyQuote.com. Retrieved May 22, 2017, from BrainyQuote.com Web site: https://www.brainyquote.com/quotes/quotes/a/andrewross657440.html