Friday, February 8, 2019

Family Business Assessment

(From Friedman and Friedman, How to Run a Family Business)*
Have each family member complete this assessment, then average all the scores for each scale. A score below 5 on any scale indicates perceived difficulty in that area, a score between 6 and 10 indicates perceived strain in that area, and a score of 11or higher indicates perceptions that your family business is doing very well in that area. 

For each statement, circle the number that describes how strongly you agree or disagree:
3 = Strongly Agree    2 = Agree Somewhat 
1 = Disagree Somewhat    0 = Strongly Disagree

 SCALE 1: MISSION/PLANNING
  1. People know what our business stands for.
    3    2    1    0
  1. We have a business plan that is evaluated and updated regularly.
    3    2    1    0
  1. There is a written succession plan for the next generation of the business.
    3    2    1    0
  1. As our business grows, our profit has risen as well.
    3    2    1    0
  1. We share our dreams and visions for the future, and know what each family member wants.
    3    2    1    0
          SCALE 1 TOTAL:
 SCALE 2: COMMUNICATION/CONFLICT RESOLUTION
  1. Our family meets several times a year to talk about how things are going.
   3    2    1    0
  1. No deep conflicts in our family have caused family members to cut themselves off from each other.
   3    2    1    0
  1. Our family openly expresses differences of opinion.
   3    2    1    0
  1. We are able to resolve our major conflicts and differences.
   3    2    1    0
  1. We have a clear process for making different types of decisions.
   3    2    1    0
          SCALE 2 TOTAL:
 SCALE 3: BUSINESS PARTICIPATION
  1. We evaluate clearly and objectively the performance of family members in the business.
   3    2    1    0
  1. Women and men participate in the business with equal opportunity.
   3    2    1    0
  1. Family members feel they are treated fairly in business-related matters.
   3    2    1    0
  1. Family employees know where they stand in the business, including limits and opportunities.
   3    2    1    0
  1. Family members in the business have clear responsibilities and roles.
   3    2    1    0
          SCALE 3 TOTAL:
 SCALE 4: OUTSIDE ADVICE
  1. The head of the business doesn't have to be involved in everything or control everything.
   3    2    1    0
  1. The business is able to hire and retain non-family managers in responsible positions.
   3    2    1    0
  1. We listen to and consider new ideas from our younger generation and outside managers.
   3    2    1    0
  1. We share our planning with non-family managers.
   3    2    1    0
  1. Outside advisors meet with us regularly and have been willing to give us "bad news."
   3    2    1    0
         SCALE 4 TOTAL:
 SCALE 5: GENERATIONAL CONTINUITY
  1. Offspring have been able to learn about the business from their parents.
   3    2    1    0
  1. There has been some discussion and planning for the possible roles of heirs as they enter the business.
   3    2    1    0
  1. Heirs have had a chance to work elsewhere.
   3    2    1    0
  1. Offspring feel that plans for the division of the business are fair.
   3    2    1    0
  1. Offspring have opportunity to influence the future of the business.
   3    2    1    0
         SCALE 5 TOTAL:    3    2    1    0
 SCALE 6: OUTSIDE THE BUSINESS
  1. The family spends time together relaxing in non-business activities together.
   3    2    1    0
  1. Our family is active in the community.
   3    2    1    0
  1. Everyone in the family is actively involved in fitness and caring for their health.
   3    2    1    0
  1. Family members in the business have outside hobbies or interests
   3    2    1    0
  1. We encourage each person in the family to discover his or her own way.
   3    2    1    0
         SCALE 6 TOTAL:
*This book is no longer in print, but the assessment remains a non-threatening way to collect family member perceptions anonymously, as a source of data for probing further into their level of trust and/or conflict in the family business..

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