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Roles for family in the business
A question we are commonly asked is whether family members, in particular the next generation, should be involved in the family business.
Some families choose to have a blanket rule that no family members can work in their business; they leave the ‘non-family professionals’ to it so as to avoid potential for conflict and ensure meritocracy. I have known one mother to say “No way are my children working in the business. It took their father, my husband, away from the family and his life revolved around it.”
This week, Yasmine Omari, a Manager with the Deloitte Middle East Family Enterprise Consulting team in Dubai, explores the importance of creating a family constitution.
When one discusses constitutional legacy, political connotations are often the first thoughts that spring to mind. Family business systems are not too dissimilar to political systems, be it autocracies or democracies. Successful family businesses tend to have certain key features that make them successful, such as clarity of purpose and values shared by their members. They adhere to an established code of conduct, and are aware of stakeholder expectations, undertaking activities accordingly. Such features are not dissimilar to successful political parties that are driven by a set of ideologies, meeting the needs of the people.
This week, Alain Nijs, a partner in Greenille by Laga, highlights the unique features of family dynamics in blended families.
Blended families (including stepfamilies) are common today. Statistics show that in some countries a growing number of families have shifted away from the model of the “intact” or “nuclear” family, composed of the original biologically bonded mother, father and children. In other words, these families have gone through various transitions: a breakdown (divorce), remarriage or another form of living together relationship.
When working with family businesses, it’s sometimes surprising to see the gap between the founder and the next generation, particularly when the next generation do not see the importance of the business. This week Rosine Makhlouf, a senior manager with the Deloitte Middle East Family Enterprise Consulting team in Dubai, considers how to encourage engagement of family members who don’t work in the family business.
This week, Michelle Osry, a partner in Deloitte in Canada, explores how families can improve the likelihood of achieving their hopes and ambitions by considering preventable reasons why they may fail.
This week Nikolaj Thomsen, a Partner with Deloitte in Denmark, explores the benefits of creating a community of next generation members of family businesses.
The New Year is traditionally a time to set goals and resolutions, and as you continue to work with your family this year, you might want to ask yourselves; What are your family enterprise resolutions for the year looking ahead?
As the year draws to a close, now is a time that many families choose to gather, spend time together and reflect on the year that has just been.
This week, Walid Chiniara, a partner who leads the Family Enterprise Consulting practice in Deloitte in the Middle East, explores the benefits of implementing a family governance system.
Although most often thought of as primarily a transition in leadership, succession can be the perfect opportunity for entrepreneurial families to assess what other changes may need to be made to their business, helping to ensure that both family and business work together for a sustainable future.