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The “Family Business Dynamics Issues”
Every family operating a family business must deal with a set of six key issues
involving family dynamics:

 How family members in the business are treated
 Treatment of non-family members in the business
 Expectations of Performance and Accountability for both family and non-

family members working in the business
 How “rewards and recognition” (including job titles) are handled for both

family and non-family members working in the business
 The willingness of family members to learn, develop new capabilities and

change, and
 How leadership both of the family and the business is handled

These family dynamics issues play out not just in the family but also
inevitably in the business as another arena.

 How these issues are resolved is critical to the continuing success of family
businesses.

 These issues must be resolved in the family business planning process to
avoid day to day conflicts in the business.

The solutions to the family dynamics issues are (or should be) summarized into a
set of “family values.”

The Function & Value of a Family Business Plan
A “Family business Plan,” then, summarizes the family’s decisions about both the
strategic family business issues and the family dynamics issues. Taken together,
these decisions define the “Foundation” of the Family Business for the Family.
The Family Business Plan articulates the plan of the family for the use of the family
business. It is not a strategic plan for the business. In a sense, it is prerequisite or
context for developing a sound strategic business plan.

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