Best Business Practices
Best Practices of Family Owned Businesses
- Business strategic plan that is well developed and communicated broadly and effectively within the firm, with evidence of successful implementation of the plan
- Well developed and executed employee performance management system including accurate, up-to-date job descriptions, agreed upon goals, and timely, truthful feedback and evaluation
- Leadership development plans to choose successor and prepare them to take over
- Active and functioning Family Council that serves the purpose of communicating firm and family issues
- External expertise on either a Board of Advisors or Board of Directors
- Family Charter that outlines policies concerning continuity, participation, ownership, compensation, management, conflict resolution, and personal and corporate responsibility
- Estate plan of owners/partners that addresses: lifetime security of owners, who will share in firm ownership/growth, continual challenge for retired owners, and plan if a current owner/ employee becomes disabled
- Continuous financial success over time in terms of sales and profit growth
- Evidence of community service and “giving back”
