How Do Family Businesses Create Lasting Success? EY partnered with the Kennesaw State University Cox Family Enterprise Center and surveyed the largest family businesses in each of the top 21 global markets to find out how they manage important issues. You can view the executive summary of the report here, but the take-away is encapsulated in the following seven questions addressed to the leadership of the Family Business.

  1. How can we help smooth succession?
  2. How can we use branding ourselves as a family business to improve our performance?
  3. Are we really prepared for cyber attacks?
  4. How do we create an effective governance model?
  5. How do we increase focus on corporate social responsibility and sustainability?
  6. How do we reduce unhealthy conflict?
  7. How do we encourage more women to join the business?

Based on prior research published in the Family Business Review, we here at The Erskine Company have developed a “Sanity Check.” This checklist includes the hallmarks of sustainable control for a Family Business by asking their leadership about:

  • Growing- Mark Dixonthe level of the current CEO’s competence.
  • the level of the younger generation leadership’s competence.
  • the Family labor supply.
  • the Family social network.
  • the financial resources of the Family outside of the business.
  • the financial resources of the Family inside the business.
  • the nature of Family management.
  • the nature of business management.
  • intrafamily relationships.
  • cross functional business processes.
  • adaptability of the Family and business processes.
  • the business decision-making process.
  • the Family’s decision-making process.
  • the Family’s learning process.
  • the business’ learning process.
  • the Family’s innovation process.
  • the business’ innovation process.
  • the Family’s accomplishments.
  • the business’ accomplishments.
  • the Family’s competitiveness.
  • the business’ competitiveness.

The purpose of the Sanity Check is to begin to determine if the family is addressing the correct issues rather than prescribing a minimum standard of performance or processes. It highlights what is uncertain in the minds of the family leadership, and should be addressed first. The Erskine Company provides estate planning, risk planning, and tax planning services as well as family enterprise consulting including business succession planning for families holding businesses, real estate, unique assets and/or notable collections. At The Erskine Company, safeguarding your family business, ensuring it is sustainable, and protecting your family assets is our highest priority. Email us today to complete the “Sanity Check” and explore your options for creating your comprehensive plan.

Share This