For many in the younger generation, it can be a daunting challenge to provide the elder generation with management advice.  This is a natural reaction, as for most children parents are a source of setting boundaries.

Who of us hasn’t heard the phrase “who do you think you are?” from their parent when misbehaving as a child?  There is no question that parents provide a source of guidance, boundaries and behavioral development towards their children — but once children become adults and enter into a managerial role within the Family Enterprise, how can they overcome the natural disposition of “never questioning their elders?”

Here are some key steps in establishing boundaries within a Family Enterprise or Family Business which can help overcome the intergenerational challenge:

Clearly Defined Contracts and Agreements:  It is of paramount importance to have written standards applicable to all members of a business, whether it is family or otherwise.  All too often, family members treat business obligations with the same casual nature as they would a backyard summer barbecue.  To avoid this pitfall, work with an objective party to determine fair and unbiased standards, written and adhered to by all employees and family members, as the baseline for Family Enterprise operations.

Establish Protocols:  Do not approach a situation without an established procedure.  If hiring a new family member into the Family Enterprise, hold that individual to the same standards as a non-family corporation would.  Draw the lines in cement, not in sand — doing so will avoid biases and other preconceived notions or relationships.

Follow The Above — or Pay the Penalty:  Contracts, Agreements and Protocols are great — but if they are not clearly defined and upheld, they serve no real purpose.  Whether father or son, sister or brother, mother or cousin — all family members must treat their business environment as any corporation would.  Penalty for failing to meet these standards should be clearly defined and administered.

For further reading on this topic, please consult the IESE Insight article on Drawing the Line Between Family and Business: Click Here to Redirect