It does not matter where in the world a family business is located, according to Deniel Banks of DW Banks Company, Inc, one thing all family business leaders have in common is that they want easy-to-use tools to help with succession planning.
As a result of seeing this trend around the world, Banks developed a checklist as a meaningful way to stimulate business leaders thinking and starting important conversations with family members. He says the checklist has an international perspective integrated in.
“Ten Principles for Family-Owned Business”
- Make dreams a reality – What are your own dreams? Your family’s dreams? You customer’s dreams? Answer these questions and align these dreams with business and family strategies.
- State principles and goals clearly and allow your children to develop their own goals for personal happiness and success regardless of whether they end up in the family business or not.
- Distribute leadership, empower others, and offer mentoring and coaching when necessary.
- Follow criticism with encouragement. Be ready to apologize.
- Lead the family by example. Apply some of what you do best at the office while at home.
- Know yourself. Be clear on your leadership strengths, your beliefs, and your values.
- Encourage your next generation family members to take action and do what’s right. Be persistent in communicating ideas and listening to theirs.
- Respect and honor differences. Learn from other cultures and create an environment the embraces the diversity in people and ideas.
- Collaborate by moving from “position power” and hierarchy to building “relationship power” locally and globally.
- Foster a broad perspective and give something back.
Banks said he likes to ask his clients to circle three of the ten items that they want to focus on most in their own business to move towards 21st century leadership and a global perspective.