Business-Family Issues Audit
This is a practical exercise for identifying “top of mind” issues of interest or concern related to your:
- Family Dynamics
- Business Practices
- Ownership Plans
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Directions For Completing The Business-Family Issues Audit:
- Review the Audit statements for the Family, the Business, and Ownership
- Select those topics under each heading that are the most important to you
- Begin the first ‘round’ with a selection of 3-4 for each heading
- If you are completing the Audit with other family members
- Have all share their selections
- Then complete another round using only the selections made by family members
- Tally these selections to reveal common choices for each heading
Upon completion of the ‘Audit’ you will have a basic assessment of the ‘top of mind’ issues. These results offer you a practical and informed way to begin to speak with other family members, trusted advisers and colleagues about ways to address critical concerns.
For The Family
- Improve family communication and information sharing________
- Identify family shared values _______
- Establish policies that manage the family’s relationship to the business____
- Recognize and resolve family conflicts that disrupt business operations _______
- Develop educational programs to introduce and engage the next generation with the business _______
- How best to insure long-term family financial security ____
- Provide guidance for next generation career options _____
- Formulate an on-going family communication and participation plan ______
- Acknowledge and address family member past hurts, rivalries _____
- Establish a conflict management process _____
- Consider family philanthropic goals _____
- Plan for family fun/celebrations_______
- Support family cultural traditions _____
- To promote family harmony establish a family governance process and framework ______
- Address entitlement behaviours _________
- Align family goals for the business with strategic business goals _____
- Determine expectations and role of non-employee family members _____
- How to encourage the inclusion of married-ins (in-laws) _____
- Establish a business-family Code of Conduct ____
- Document family-business story_____
- Determine how to support lifestyle requirements of retiring founders/senior family members _____
- Other __________________________________________________
For The Business
- Determine suitability of family member employees in current positions in the business_____
- Provide further training and development for family employees _______
- Formalize job roles and chain of command ______
- Develop process for establishing family employee performance standards_____
- Set annual calendar of regular management meetings _________
- Determine structure of compensation, bonuses for family employees _____
- Set a timeline and process for management succession planning _____
- Establish a successor grooming program_____
- Determine business perks available to family employees _____
- Formalize business decision-making processes/procedures _____
- Specify role of spouses in relation to business decision-making _____
- Set policy and process for hiring friends and extended family into the business ____
- When to hire non-family executives ________
- Address management style differences of family employees ______
- Engage in regular near and long-term strategic business planning ______
- Promote fair and respectful treatment of non-family employees ______
- Restructure business to meet growth goals ______
- Determine best ways for motivating non-family managers_____
- Establish a family member employment policy _________
- Other _____________________________________________
For The Owners
- Set schedule for regular presentation of yearly financial results & business activities ____
- Formulate a family enterprise ownership agreement ______
- Determine the family’s philosophy of business ownership ______
- Specify ownership benefits _________
- Define owner role and responsibilities _________
- When to institute marriage contracts / pre-nuptial agreements _____
- How to mitigate estate tax through an Estate plan _____
- When to institute a Family Trust_____
- How to value sweat equity ________
- Determine qualifications for next generation ownership _____
- Identify opportunities for growth of ownership wealth ______
- When to plan for ownership succession __________
- Decide if, when, and how to position the business for sale _____
- Establish dividend formula and schedule ________
- Other _______________