According to Mr. Cooper, the Victrola was sold in 1927 by his ancestors in the old Cooper Music Company three generations ago when it was still based in Pennsylvania. A descendant of the original owner saw the Cooper Music logo inside the Victrola and decided to see if the company was still around. Not only was Mr. Cooper happy to hear from the Victrola owner, he was so interested in the Victrola as a family memento that he decided to buy it back.
Blake Cooper and his siblings are the fourth generation of Coopers to manage the Cooper Music Company, which celebrated a century of business in 2006.
The Coopers have a "history wall" in their facility which demonstrates their understanding of the responsibilities and significance of being successors to a family business. Looking back at the triumphs and failures of their ancestors inspires them to stay the course. However, the Coopers emphasize that a strong sense of history must be combined with the ability to embrace change. This delicate balancing act between the lessons of yesterday and the challenges of today is their secret of success.
Learn to balance historical legacy with the ability to adapt to change. That is a key strategy for a successful family business. Here are five more strategies that can help your family business grow:
1. Emphasize the "business" aspect of "family business"
If a family business puts too much emphasis on the "family" aspect of their operation, all sorts of problems can arise. Imagine a family that tackles a business problem the same way it decides on what movie to watch – everyone has a suggestion and no one wants to give in. This kind of informal business infrastructure can lead to indecisiveness, confusion and, ultimately, a lack of effectiveness and productivity.
If a family business puts too much emphasis on the "family" aspect of their operation, all sorts of problems can arise. Imagine a family that tackles a business problem the same way it decides on what movie to watch – everyone has a suggestion and no one wants to give in. This kind of informal business infrastructure can lead to indecisiveness, confusion and, ultimately, a lack of effectiveness and productivity.
Like any other business, a family business should have a clear vision and mission. It should have clear objectives as well as internal systems and processes that can help the company achieve these objectives.
If you are not sure whether you treat your company as a professional business, ask yourself one thing: do you have a clear-cut set of objectives and complementary systems and processes in place? Or do you lack even something as basic as a table of organization? This leads us to our second strategy.
2. Clearly define roles and responsibilities
In many family businesses, family members are equipped to handle similar duties and responsibilities. There's nothing wrong with that. In fact, having multiple and flexible roles is a hallmark of a strong family business. It allows family members to quickly close ranks to overcome big challenges.
In many family businesses, family members are equipped to handle similar duties and responsibilities. There's nothing wrong with that. In fact, having multiple and flexible roles is a hallmark of a strong family business. It allows family members to quickly close ranks to overcome big challenges.
However, it’s one thing to have similar roles and responsibilities as opposed to having overlapping roles and responsibilities. The latter leads to endless debates even over the smallest things, which slows the wheels of the organization down considerably.
From the very beginning, clearly define roles and responsibilities so that everyone knows who is in charge of a particular area. It simply won't work if everyone fancies themselves to be marketing or production experts and insists on having their way.
3. Have a firm succession plan in place
Without a succession plan, family members who consider themselves worthy of running the business would be posturing and lobbying endlessly to capture the top spot. There would be a tendency to sacrifice growth to gain greater control of the organization.
Without a succession plan, family members who consider themselves worthy of running the business would be posturing and lobbying endlessly to capture the top spot. There would be a tendency to sacrifice growth to gain greater control of the organization.
It’s also possible for the current head of the family business to refuse to step down. That would lead to even more chaos, and it's the business that will suffer the most.
Family businesses should always have a formal succession plan in place that defines the details of how and when the next generation will take over. The plan should also spell out the financial package and benefits of retiring family members. The family may want to consider hiring outside professionals to handle this delicate matter.
4. Avoid "sympathy" appointments
Many of us have felt the frustration of being under a boss who doesn't care about the business or know what he is doing. Is there anything worse for a professional organization than to have unqualified people assigned to sensitive and critical posts?
Many of us have felt the frustration of being under a boss who doesn't care about the business or know what he is doing. Is there anything worse for a professional organization than to have unqualified people assigned to sensitive and critical posts?
Unfortunately, there's a lot of that going on in family businesses. Where else can you see the founder's grandson with a freshly minted MBA suddenly being appointed as head of the division? Not only does this affect morale, it also stifles creativity and initiative. Worse, these unqualified family members think their position is a birthright and that they don't have to work hard to prove their worth.
Don't make your family business a storehouse for your children, nephews, nieces or others who can't find a job elsewhere. Always hire family members based on their qualifications and skill.
5. Be willing to seek outside advice
There are times when it’s hard for a family business to make decisions not based on emotion. For instance, can you sell part of the business or hire other family members without emotions coming into play? Wouldn’t it be hard to refuse a family member or sell your grandfather's outdated factory because they are close to your heart?
There are times when it’s hard for a family business to make decisions not based on emotion. For instance, can you sell part of the business or hire other family members without emotions coming into play? Wouldn’t it be hard to refuse a family member or sell your grandfather's outdated factory because they are close to your heart?
There are times when it’s best to seek outside counsel from a professional non-family member whose decisions can be accepted and respected by all.
Outside experts bring fresh, objective and creative ideas to the table. You can count on them to make the hard, but wise decisions. Unlike anyone from the family, these external consultants are not too close to the forest to see the trees. They are not burdened by having to please the rest of the family when making a decision.
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