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A STRATEGIC FAMILY BUSINESS PLAN

A “Strategic Family Business Plan” is a document that captures the family decisions
with respect to the two kinds of “special family issues” that must be resolved
outside of the business: 1) “Family strategic issues” concerning the Business’
“Purpose” or “function” vis a vis the family, and 2) A set of six key “family dynamics
issues” that face all families owning family businesses.
Family strategic issues are issues concerning how the family views the
business as a vehicle for family needs. Family dynamics issues are
interpersonal in nature and affect key aspects of the function the family
and the business. The two kinds of Family Strategic Issues are captured in and
summarized as a family “mission and vision
The three-part construct of “Mission, Vision, and Values” is widely used in
strategic planning. We are applying this construct here to family business planning.

The “Family Business Strategic Issues
This means that there are three specific “family business strategic issues”:

1. The family business “mission” is the overarching statement of the role or
purpose of the business for the family. Some families want the business
to operate independently of the family, while others what it to be an integral
part of the family and vice versa.

2. The family business “vision” is the overarching longer term objective of the
business for the family. For example, some families want to operate the
business indefinitely, while others what to prepare or position it for eventual
or near term sale.

3. The family business “values” are the core guiding principles of the family for
operating the business. These guiding principles must address six key areas
of “family business dynamics issues.”

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