Blog

You have seen the headlines!

A healthy, strong company culture that underpins major success stories, Businesses thriving and achieving. The flipside is horror stories of ‘toxic’ cultures that have brought down corporate giants and left behind tainted reputations, fallout and damaged victims.  

These scenarios are played out in Businesses of all shapes and sizes across all industries.  

Creating a healthy, strong culture takes time, effort, education, and understanding. 

By definition, Organisational culture is built on shared values, behaviours, beliefs, and attitudes that define how a business operates.  

Family businesses blend these elements with the unique features of family heritage, intergenerational dynamics, purpose, aspirations, and vision. This combination creates a highly loyal and trust-driven environment.  

The key to success is to establish clear boundaries to ensure Business and personal matters are separated. Business time, expectations and demands should be realistic and not encroach on family time.  

To strengthen these foundations is an ‘intentional’ culture. This is a well-defined, deliberately cultivated culture aligned with the Business core values.  

Building an intentional culture takes time, commitment, and diligence. The benefits for a family Business include improved business performance, support for long-term sustainability and enhanced family harmony. 

This Intentional approach avoids less effective types, such as, 

• Chaotic - lack of clear direction, leading to confusion and inefficiency

• Happy accident - positive culture developed by chance, good luck that can be fragile and unsustainable

• Command & control - a fear-driven, top-down culture where a few make the decisions and dissent is not tolerated. 

Steps to Building an Intentional Culture 

• Schedule regular Meetings and ensure they happen. Arrange structured, formal meetings to discuss any issues, progress, current and forward planning. Conduct professional meetings and keep them focused on agenda items. Invite all relevant members and encourage their participation. 

• Define Core Values. This is crucial. Identify and clearly articulate the fundamental beliefs and values that guide and shape your Business. These should reflect what your Business stands for and influence any decision-making and actions. 

• Create a Business Structure chart. Develop a clear structure that outlines roles and responsibilities, authority, reporting lines, and accountability measures. This helps reduce confusion and prevent overlaps and conflicts. This document also helps reduce nepotism and entitlement regarding promotions, performance management, and hiring. 

• Develop KPI’s. Yes, those key performance indicators provide a clear picture of your business performance and health. These indicators are tangible, objective data that support decision-making by helping to remove biases and emotions from the process. 

• Give your Culture a Health Check. Don’t be complacent. Regularly assess the health and intentionality of your culture. This check can identify areas for improvement and ensure your culture remains aligned with your Business values and vision.  

• Be aware that a strong, entrenched culture can be a liability if it stays fixed.  As environmental conditions change, it can be vulnerable if it stays the same. A Company culture needs to adapt to the new strategy and growth, and respond to external forces of change. It takes a willingness, but Family businesses can successfully transition and evolve without sacrificing what makes them unique. 

• Open Communication is critical. Promote honest, clear, and transparent communication.  Foster an environment where members feel safe to speak, contribute and raise any concerns. Provide the opportunity and encourage constructive feedback to support continuous improvement for all members. Schedule private meetings for members wishing to raise concerns or discuss personal matters. 

• Check your Ego. Family businesses are known for their distinctive cultures, often strong and heavily influenced by the founders' style, vision, and values. These can positively bind members to a united common cause. On the flip side, be aware not to let ego define you. As a Leader, take the time to self-assess and seek feedback. Ensure you are approachable for both family and non-family members to avoid silos and barriers. Intimidation does not foster loyalty!  

Lead your Business to success by developing an intentional culture that provides benefits and opportunities for all, stability, and financial growth while maintaining the family legacy.