The culture of a family reflects in the culture of the family business. Designing a Code of Conduct enables overcoming Family Business challenges and facilitates solving issues effectively and amending unacceptable behavior.
Two important factors of Family Businesses that are instrumental in formulation of the Code of Conduct are Familial Values and Business Values.
The above model will help reflect the current scenario of a Family Business.
The presence or absence of either or both Family and Business Values will lead to 4 different circumstances namely, Disintegration, Competition, Legacy Creation and Corruption. A strong combination of both will prove to be a competitive strength.
- What are your Family and Business values? Keeping in mind the model, how does your family business reflect these values?
- How do you align Family Values and Business Values?
- How do you effectively tackle the risks arising out of family dynamics and also harness the best of the family values?