Family run business often are very different than mainstream corporations. In addition to the usual corporate problems, they have family issues that are often far more intense and seeming insurmountable than normal corporate issues. Family run business consulting is a specialty that requires certain background, knowledge or skills in order to be effective. OTC has consultants that have devoted the majority of their lives to working with family run business.

• Have your ever heard “Leave your emotions at home when you come to work”? Well in family run business not only do they NOT leave their emotions at home, they don’t leave the issues either. These issues greatly affect the organizational culture and business operations.
• Family run business generally have a lack of documentation, policies and procedures because they are family run. This is a future problem waiting to happen
• There is pressure to hire relatives regardless of abilities or merit which cause discontent among all non family employees
• Family members are often given more leeway in matters like benefits, time off, mistakes or poor performance which non family members see as a sign of favoritism
• There are often family rivalries brother sister, father child, brother to brother which is highly detrimental to the organization culture.
• Governance issues and decision making authority tend to me major issues for most family run business
• Poor performance and other problems caused by family members is often overlooked or tolerated when it is not by nonfamily employees.
• Attracting and retaining excellent employees may be more difficult in a family run business since there is little career progression.
• Authority can often be convoluted in a family run business especially to all non family employees.
• Succession plans need to be clear,knownu to the entire family and legally documented.

These are a few of the issues we often encounter when consulting with family run business. Our focus is on 4 main areas, family, nonfamily employees, family wealth preservation, and the organization. We also offer ongoing coaching and advising services for long term support especially during difficult transitions. For an assessment of your business contact us at OTC.

What can family business leaders do to best prepare for a successful transition of power and leadership from one generation to the next?

Why do so many families and family businesses fail in this process?

What are the leadership skills and governance structures needed in each generation to enrich the family legacy, their business, societal contribution, and wealth?

What must each generation master to succeed in this endeavor?

Dr. Marc Silverman PH.D.

Dr. Marc A. Silverman has consulted with family businesses from startups to multi-nationals, from first through sixth generations, and from three to over 100 family shareholders. He specializes in working with complex family systems of over 25 family shareholders and particularly in integrating the needs of different generations into clear succession and governance structures. Many of his clients have more than 2000 employees.

WORKING WITH US

We differentiate between practitioners and academics, and between skillful practitioners and knowledgeable practitioners. All of our staff are skillful and knowledgeable practitioners with many years of practical experience or have been in senior leadership positions themselves. While no consultant can guarantee the successful implementation of an initiative or change effort, because so much depends on the organization itself, the people within the organization and environmental circumstances. We however are excellent in helping organizations understand all that will be necessary in order for them to obtain the results they are looking for, and then supporting the organization in achieving those goals.