10 Best Practices of Successful Family and Private Businesses
1. Business Charter
Articulate a clear business philosophy, resulting in a charter that outlines policies concerning employment, ownership, compensation, management, conflict resolution, and personal and corporate responsibility.
2. Dynamic Business Strategy
Develop, regularly update, and communicate a business strategic plan, with continuous measurement of the plan results.
3. Performance Management System
Develop and execute an employee performance management system including accurate, up-to-date job descriptions, agreed upon goals, and timely, truthful feedback and evaluations.
4. Leadership Development
Implement leadership development plans for key positions and possible successors.
5. Outside Boards
Establish either a Board of Advisors or Board of Directors including non-family members (if a family business).
6. Contingency Planning
Create contingency and estate plans that address the organization's response in the event of disability, death or voluntary resignation of owners and key officers.
7. Owner's Retirement Plans
Create retirement plans for owners that address the lifetime security of owners, including a continual challenge for retired owners.
8. Business Growth
Contributed to continuous financial success over time in terms of sales and profit growth.
9. Business/Family Council
Create an active and functioning Family Council / Council that serves the purpose of communicating family and company issues.
10. Giving Back
Embrace and encourage company and individual community service.