Please answer the following questions to the best of your knowledge.  Then tabulate your score, and read the explanation below.

1. Are you able to share concerns and issues with your family members openly, knowing that your comments will be taken seriously?

2. Does your family have meetings specifically set up to deal with family business issues in a safe environment, to address concerns family members may have?

3. Is your family business run professionally, without family issues or dynamics negatively impacting or complicating business matters?

4. Does your family have guidelines for family members and their conduct within the business?  For instance, are guidelines set for entering the business (who, when, experience, etc.), benefits, expectations, while working in the business and development expectations?

5. Has the senior generation in your family business thought about and shared their philosophy with next generations as it relates to the future of the business, succession planning and development of the future leaders?

6. At the sign of any trouble with communicating or when seeing a trend with family conflict, have you sought outside help to stop continued problems from growing?

7. Do family members inside and outside your business (who may have different goals for the business), communicate openly and share issues so that they can be discussed and resolved without animosity?

8. Is the business' organization and hierarchy respected by family members?  Do family members respect that their ages and positions within the family may not dictate their positions in the organization?

9. When determining a path the family business should take, can your family members speak openly even if they disagree about the proposed direction? 

10. Do the junior generations have the appropriate respect for the business and what it takes to be a part of it without the attitude of entitlement?

If you answered "no" to three or more of these questions, your company may have a greater chance of failure as it moves to the next generation.  Nearly seventy percent of family businesses fail when moving to the second generation, and it gets worse from there with 83% failing into the 3rd generation and so on. However, effective communication and running the business professionally will provide the solid foundation needed to keep the business strong for generations to come. 

Our Custom Coaching Services can help you strengthen communication within your organization, run your business more professionally, and get a solid succession plan in place.  We have helped secure the future success of thousands of family businesses nationwide, and we can help you too. For more information, contact us.