At a client’s annual family-business meeting, I had the honor of sitting by Grandma. She and Grandpa had founded the business and were enjoying watching their family, four generations and 27 total folks, enjoy each other’s company.
She showed me a picture of a tow-headed toddler wearing water wings, smiling broadly as he stood next to a pool. “That’s Teddy, at our second family meeting. He’s 24 now – right over there.”
She pointed. “He just got engaged!” This family had been holding family meetings almost every year for over 20 years, beginning when it was only eight adults. The gatherings began as a combo of a fun overnight escape to a local hotel and a short update from the farm’s banker or accountant. Today, the meeting includes hands-on learning for all ages, followed by dinner together. The ten cousins (and their spouses) know each other well and enjoy each other’s company. As I attend their sessions, I can feel their connectedness and engagement, which was developed, in part, by the power of having ongoing family meetings.
As your family business organization grows, the business and ownership systems evolve and formalize. Within the business, middle managers are hired, meetings to plan and effectively communicate are held, and non-family managers contribute more and more to the business. In the ownership system, a Board might emerge – first with family owners working in the business, then evolving to include non-managing family and eventually independent directors.
Less common is the growth and deliberate formalization of the family system. And yet, the family’s clear vision and values are the strong foundation that underpin healthy family businesses. As the family grows into a broader, more diverse group that includes married ins, it takes deliberate time and effort to define that vision and values. Essentially, strong families put in the work to discuss and decide on how, even across a wider variety of careers and perspectives, the business continues to make the family better.
Why does the structure that supports the family system often come last? In agricultural businesses, where independence is prized, formally convening the family can feel like you’re inviting perspectives from a diverse and (sometimes) uneducated stakeholder group. I have heard this: “It’s hard enough to get decisions made among my two brothers and me! And you’re suggesting I should have another meeting and ask for my family’s input, too? Are we going to let them have a say in how the business runs??” A family meeting does not mean the management and leadership of the business will be turned into a democracy or that family members automatically get their way.
Another challenge is the foreignness and formality of a family meeting. When “everyone” works in the business and sees each other every day, why is an official meeting required? Additionally, some folks balk at sharing business information – they are intensely private and don’t see the need to share challenges or wins with anyone, even family.
Fortunately, doing this work of organizing and “aiming” the family doesn’t require disclosing your entire balance sheet or allowing your 12-year old snowboarding enthusiast to have input on your marketing program.
The impact of regular family meetings can be long-lasting, like in the example. Well-planned family meetings can yield stronger family relationships that form a foundation of support for the family business.
Below are some practices that can increase the probability that your family meeting will grow and nurture a strong family foundation.
- Be as inclusive as possible in whom you invite.
As successors begin to marry and start their own families, will those in-laws be invited? If the meeting has been called to handle a conflict or sensitive issue, sometimes in-laws are not invited. However, as the family settles into “regular” meetings, most families do include in-laws within family meetings. To build that family foundation, it’s helpful to have both parents of future generations understand the business values and history. - Match the formality, length and agenda to the stage of the family.
Here’s an example agenda for a family that includes mom, dad, two next gens in their late 20s. Both next gens are married and one works in the business. Note this meeting is about two hours long.Consider having a non-family facilitator for the meeting.
• Facilitation includes communicating the location, time and agenda, ensuring a variety of family members speak up and ensuring the meeting stays on time.
• Having an “outsider” with experience can help make sure the amount of content fits the time allowed and is engaging. And, they can help quiet folks get heard and lively folks pipe down – in a way that takes the pressure off family.
Regular family meetings contribute to the longevity of family- owned businesses. Holding them may make you feel a bit vulnerable. And, getting them kicked off may feel a bit awkward. But in just a few hours a year, you can create a space for family to build energy, engagement and commitment. Those gatherings can build the “glue” the binds a family together through the conflict, miscommunication and hurt feelings that happen within every family business. Consider holding a family meeting in 2022!
ABOUT THE AUTHOR
Barb is a consultant with the Family Business Consulting Group, working with families and management teams to help them keep their business healthy and the people happy – and assist with succession and continuity planning. Barb can be reached at 269-382-0539 or dartt@thefbcg.com
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.
To view the article in the online 2022 Winter Partners Magazine, click here.
