Family Values should be taken into consideration when protocols are being prepared for the interaction between Family Members and designing the day to day culture of the organization. As Family Values are the driving force in a successful Family Business it is absolutely crucial that control be maintained such that their power is fully realized. Though businesses are run on a rational and professional basis, the emotional element that characterizes the family may create conflicts.
Managing and upholding the Family Values depends on the co-existence of the following three elements:
- Direction and consensus: Insight into and awareness of the diversity of the individual family members’ values, beliefs and ethics that form the basis of mutually shared Family Values
- Dialogue and formalization: Dialogue about how the Family Values should be set up and documented in order to keep the interaction between the family and the business in balance (family governance)
- Leadership and decision-making: Managing the values to achieve
(a) Good relationships within the family,
(b) Sustainable and responsible shareholders, and
(c) Consistent management of the business
The challenge is to create a broad base of acceptance among the various generations to ensure respect for the varied roles within the family, while at the same time firmly managing the functional values for the desired culture. It is important that family businesses see generational differences as an opportunity to update and refresh their traditional values. In the dynamic world of family businesses, evolution is essential to secure the continuity of the business and upholding its culture in the long run.