Professional Management of the Family Firm

•“Best Practices” (John L. Ward)
1.Stimulate new thinking and fresh strategic insights.
2.Attract and retain excellent managers.
3.Create a flexible, creative organization.
4.Create and conserve capital.
5.Prepare successors for leadership.
6.Exploit the unique advantages of family ownership.

•Nonfamily Employees in a Family Firm
–Hazards:
ØCompetition with family members for advancement
ØGetting caught in the crossfire and politics of family competition within the firm
–Solution:
ØIdentify family-only reserved positions in advance.
ØTreat both family and nonfamily employees fairly in matters of reward and promotion.

•Family Retreats
–A gathering of family members, usually at a remote location, to discuss family business matters.
–Use of an outside facilitator may be necessary.
•Family Councils
–An organized group of family members who gather periodically to discuss family-related business issues.