In a family business, governance starts with critical conversations among partners—often family members—deciding whether to pool their resources or go their separate ways. If they opt for unity, they must agree on a common direction. These discussions are rarely straightforward; parents might struggle to communicate openly with their children, and siblings or cousins may avoid raising contentious issues to prevent friction or hurt. However, delaying these conversations only defers the essential need for clarity and unity. Without a guiding "boussole," the family risks drifting aimlessly, missing out on opportunities and weakening family bonds.
“The unexamined life is not worth living.” — Socrates
Socrates' insight on self-examination highlights the necessity of facing difficult realities. In family businesses, this introspection about shared goals, potential conflicts, and individual aspirations is crucial. Without it, families risk falling into self-deception, avoiding the stark truths about their business's direction and governance.
The Self-Deception Trap
From ancient seafarers who navigated by the stars to explorers with their compasses, humanity has long valued clear direction. These tools symbolize the clarity needed both personally and collectively. Yet, many choose to drift with excuses rather than confront facts. While deceiving others might go unnoticed, self-deception in family enterprises can be devastating, eroding both investments and relationships because of unresolved tensions.
"The strength of a family is the bedrock of all societal integrity." — Inspired by Confucian principles
This adaptation of Confucian thought underlines that the integrity of any larger collective—be it a nation or a business—starts with the strength and honesty within families. Avoiding governance discussions undermines this integrity, potentially leading from minor procrastination to significant operational crises.
Excuses and Their Cost
Humans excel at inventing excuses to avoid difficult confrontations. From "I have a critical meeting" to "My grandmother died," or "We are in the middle of a major acquisition," these excuses often serve as shields against honest, productive dialogue. Over time, these evasions accumulate, leading the family business further from its potential. A prevalent tactic includes dodging meetings, ignoring messages, or even disappearing—not responding to calls, which intensifies issues by fostering a vacuum of information and trust.
“Better three hours too soon than a minute too late.” — William Shakespeare
Shakespeare’s caution about timeliness is particularly poignant in governance. Delaying decisions on leadership, succession, or dispute resolution can lead to dire consequences. By the time the family acknowledges the urgency, the damage might be beyond repair.
Governance: The Achilles’ Heel
When executed well, governance provides a structured framework for shared values, decision-making, and long-term strategy. When neglected, it becomes an Achilles' heel, exposing vulnerabilities in an otherwise strong structure. Families often postpone these discussions with thoughts like "We will deal with it next year," or "We are too busy right now," only to see resentment grow, communication break down, and critical decisions left unmade.
"Society educates us to follow rules, but also shapes our actions." — Adapted from Émile Durkheim's concepts
Durkheim's insights into social structures remind us that in family businesses, adhering to clear, value-based guidelines is vital. Absent this, governance is left to chance, rarely yielding positive or lasting results.
The Power of the Compass
The compass, or "boussole," transcends its navigational utility to become a metaphor for purpose and direction. A well-structured governance system serves as this compass, keeping families from descending into chaos during turbulent times. “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” — Margaret Mead
Mead’s statement asserts that even small family units can drive significant change through unity of purpose. In family enterprises, this unity is achieved through transparency, defined roles, and a clear understanding of each member's contribution. However, if a minority within the family feels consistently ignored or marginalized, they might push back through rebellion or disruption. This forced change could be detrimental to the collective but is often an attempt to be heard, to initiate dialogue, or to break the silence that has sidelined them.
Confronting Procrastination and Embracing Honesty
To combat procrastination and self-deception, families must choose truth over comfort:
Regular Strategic Discussions: Focus on long-term visions, succession, and individual goals, not just operational duties.
Role Clarity: Clearly define responsibilities to ensure accountability and reduce ambiguity.
Constructive Feedback: Cultivate an environment where concerns can be raised and addressed respectfully.
External Guidance: Engage mentors or consultants to customize governance to the family’s unique circumstances.
Consistent Engagement: Ensure all members actively participate without resorting to avoidance tactics like missing meetings or going silent.
"Change is the only constant in life." — Inspired by Heraclitus
Embracing change through honest dialogue within a strong governance framework builds resilience and deepens collaboration.
Conclusion
Missed opportunities in family businesses often stem from excuses, self-deception, and a reluctance for candid conversation. Tactics such as dodging meetings or ignoring communication further complicate governance. Without clear governance, families risk irrelevance or chaos. Like a ship on the high seas, a family business requires a compass—governance based on transparency and shared purpose—to navigate through challenges. While confronting issues might be uncomfortable, it's essential for unity, strengthening relationships, and charting a sustainable future. Opting for brief discomfort over aimlessness ensures today's opportunities are seized and tomorrow's legacy is secured.
“Delays have dangerous ends.” — William Shakespeare
In both family business and life, procrastination leads to missed chances and deep regret. By committing to governance now, families can safeguard their present and future.
Walid S. Chiniara
Advisor to Business Families, and Thought Leader on Governance, its History and Philosophy
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