Reality. Only 33% of family businesses make it through the second generation with the odds for future generations decreasing significantly from there. If you ask any family business owner, they’ll tell you the journey in a family business is both immensely gratifying and equally challenging. It takes courage and determination to navigate the tides of business. Add family to the mix and those challenges are amplified. So what’s different now? It seems with each generation, the need for adaptability, resilience, and embracing technology accelerates exponentially. It’s no longer enough to pick a ..read more

Reality. Only 33% of family businesses make it through the second generation; and the odds for future generations go down significantly from there*. Ask any family business owner, and they will tell you the journey in a family business is both immensely gratifying and equally challenging. It takes courage and determination to navigate the tides of business. Add family to the mix and those moments are amplified. So what’s different now? It seems with each generation, the need for adaptability, resilience and embracing technology accelerates exponentially. It’s no longer enough to pick a succes ..read more

I’ve had my share of family business owners who avoid discussing this four-letter word to the point of pure denial, quickly ending the conversation when this word bubbles up. The word? E-X-I-T. It sounds so final. The brutal truth is that 100% of owners exit the business, yet only 50% – just 1 out of 2 owners – will do it on their terms. If you are a family business owner over 55 and you have not begun the process of planning for the day you are not at the helm, then your chances of being in the wrong half of that statistic are against you – and your family’s legacy.   Let’s change the c ..read more

Part of the challenge in a family business, or any business for that matter, is that the world does not stop and allow you to pursue your strategy in a nice, orderly fashion. Whether it is internal or external, business issues pop up throughout the day: employee issues, supply chain disruptions, technical issues, pressing deadlines, customer emergencies, and everyday stress in the workplace. Despite the best-laid plans, there is always something demanding attention, pulling you and your leadership team away from income-producing activities and growing the business. Failing to address problems ..read more

The “Golden 5%” is that last bit of maximum contribution that is inside all of us. It’s the full expression of our ability, multiplied by our maximum possible effort, multiplied by our full contribution of heart. ABILITY x EFFORT x HEART = Golden 5% In many ways, it is the most personal and intimate thing we can offer in a professional setting. It is the performance equivalent of what we offer in a deeply loving relationship – the absolute best of ourselves. In this last 5% is the full measure of potential greatness inside each of us. And yet, we rarely give it or reliably inspire the giving ..read more

Part of the challenge in a family business, or any business for that matter, is that the world does not stop and allow you to pursue your strategy in a nice, orderly fashion. Whether it is internal or external, issues pop up throughout the course of the day in any business: employee issues, supply chain disruptions, technical issues, pressing deadlines, customer emergencies, and everyday stress in the workplace. Despite the best-laid plans, there is always something demanding attention, pulling you and your leadership team away from income-producing activities and growing the business. Failing ..read more

In working with many families and their businesses, I’ve found that every family has its own unique DNA, behaviors, values, and traditions. Yet, there is ONE theme that made all the families seem very similar…and that is the tension, angst, and, at times, a complete unwillingness to eat a meal together due to a lack of clarity around making business decisions for the family business. How do I help families clear the air of business-related issues so they can share a meal together as a family without tension, drama, and strife? Governance and routine. Family governance is a process or structur ..read more

As a leader, it is more likely that you’ll manage a negative employee or situation than not. Whether it is a short-lived instance or a long term issue, it can be manageable with candid conversations. Here are a few steps that work well to address and remedy the situation: Unearth the problem before you work on a solution Try to understand what’s causing the negativity. Are they overwhelmed at home or work? Is there something else impacting their work? You may not be a trained therapist, but you should know your people. Do what you can to reveal the cause of the situation. Without doing so, y ..read more

There is an adage that “a partnership is like a marriage.” And it’s so very true. How…? It’s a huge commitment. It requires trust and open communication. There are money decisions to be made. The workload is not always 50/50. There will be disagreements. For better or for worse, richer or… you know the rest. And like a marriage, you MUST choose your partner(s) wisely. Many business professionals get caught up in the “romance” of starting a business and bringing an idea to market. This bliss creates a blind spot to important conversations that are needed about how to scale and manage growth, wh ..read more

This article is the third one in the” 20-Year Look Back” series by Tom Garrity, founder and managing partner of Compass Point Consulting, as he shares insights and reflections on two decades of supporting family business owners. Catch up on posts one and two if you missed them. Often overlooked or avoided, understanding the facets of ownership can make or break a family business. For decades, the widely accepted Venn diagram depicting the Family Business model had just two parts: one circle representing business and another representing family with an overlap in the middle. However, this mode ..read more