Family Business Policies & Procedures—DMA Group Style
Many business owners understand that their business has changed or is changing in this decade--faster than ever before. The rate and types of change are often faster and different than a company's leadership is able to keep up with. This is equally true in all business to which DMA Group has been exposed, but especially in family businesses.
In prior decades, many family member employees of family businesses, no matter what their generation or number, were able to "tough out" problems and differences among themselves. They would do this without regard for what DMA Group considers to be "the basics", such as: formal family business meetings, written contracts and agreements, outside boards of advisors and enforced, written policies and procedures.
The so-called "basics" represent substantial change in the way the family employee concerns of a family business have been managed in the 1980s and beyond. Every family business needs written policies and procedures concerning the management of the family's specific involvement in the business. This is true if there are two or if there are twenty-two family members employed. It is true if there is one or if there are three generations employed at the business.
There are three obvious benefits to developing such family business policies and procedures:
1. Enhances Teamwork. Consistently applying well-developed policies and procedures reduces conflicts, stress, and therefore, enhances teamwork among family members.
2. Reduces Misunderstandings. Clarifies and eases the enforcement of policies and procedures thereby reducing misunderstandings or disagreements among family members.
3. Reduces Parent's Dual Role. Greatly reduces a parent's dual and often conflicting role in performing as a boss and parent simultaneously.
DMA Group administers, and referees among family members, a client company's development of comprehensive, specific, and fair family business policies and procedures. To complete such a project requires approximately forty to eighty hours of DMA Group's time spread over six to twelve months, depending on the complexity of each family's business involvements.
The Family Business Policies & Procedures index and content is customized to the needs of each client. Attached is a sample version of an index for your information.
Family Business Policies And Procedures—DMA Group Style
Sample Of Index
1. Family Business Mission
2. Philosophy Statement - "The Business Comes First"
3. Family Business Employment
3.1 Pre-requisites
3.2 Compensation
3.3 Job Objectives
3.4 Performance Reviews
3.5 Grounds for Termination
3.6 Benefits
3.7 Spouses
4. Family Business Meetings
4.1 Objectives
4.2 Frequency
4.3 Coordinator
4.4 Agenda
4.5 Follow-up
5. Major Decision Making
6. Stockholders
6.1 Eligibility
6.2 Stock Limitation Agreements
6.3 Dividends
6.4 Benefits
7. Irreconcilable Differences
8. Board Of Advisors
©DMA Group, Inc., 1996