{"id":8891,"date":"2020-02-26T14:54:05","date_gmt":"2020-02-26T13:54:05","guid":{"rendered":"https:\/\/avs-advisors.com\/?p=8891"},"modified":"2021-09-28T17:55:16","modified_gmt":"2021-09-28T15:55:16","slug":"navigating-the-minefield","status":"publish","type":"post","link":"https:\/\/avs-advisors.com\/es\/navigating-the-minefield\/","title":{"rendered":"Navigating the Minefield"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-8vgb1o-6917258f33da21f07e60183664e54de0\">\n.flex_column.av-8vgb1o-6917258f33da21f07e60183664e54de0{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-8vgb1o-6917258f33da21f07e60183664e54de0 av_one_fifth  avia-builder-el-0  el_before_av_three_fifth  avia-builder-el-first  first flex_column_div av-zero-column-padding '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yn6kg-72af09bf90878d77d8014384c89ed095\">\n.avia-image-container.av-k61yn6kg-72af09bf90878d77d8014384c89ed095 img.avia_image{\nbox-shadow:none;\n}\n.avia-image-container.av-k61yn6kg-72af09bf90878d77d8014384c89ed095 .av-image-caption-overlay-center{\ncolor:#ffffff;\n}\n<\/style>\n<div  class='avia-image-container av-k61yn6kg-72af09bf90878d77d8014384c89ed095 av-styling-circle avia-align-center  avia-builder-el-1  avia-builder-el-no-sibling '   itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\" ><div class=\"avia-image-container-inner\"><div class=\"avia-image-overlay-wrap\"><img decoding=\"async\" class='wp-image-5571 avia-img-lazy-loading-not-5571 avia_image ' src=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Artikel-3-Minenfeld_150px.jpg\" alt='' title=''  height=\"150\" width=\"150\"  itemprop=\"thumbnailUrl\" srcset=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Artikel-3-Minenfeld_150px.jpg 150w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Artikel-3-Minenfeld_150px-80x80.jpg 80w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Artikel-3-Minenfeld_150px-36x36.jpg 36w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/03\/Artikel-3-Minenfeld_150px-120x120.jpg 120w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/div><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63\">\n.flex_column.av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63 av_three_fifth  avia-builder-el-2  el_after_av_one_fifth  el_before_av_one_fifth  flex_column_div av-zero-column-padding '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-92liqz-4052c54e343629e032a096e0fdcd9fac\">\n#top .av-special-heading.av-92liqz-4052c54e343629e032a096e0fdcd9fac{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-92liqz-4052c54e343629e032a096e0fdcd9fac .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-92liqz-4052c54e343629e032a096e0fdcd9fac .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-92liqz-4052c54e343629e032a096e0fdcd9fac av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  el_before_av_heading  avia-builder-el-first '><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Navigating the Minefield<\/h1><div class='av-subheading av-subheading_below'><p>Family members in management (2): Success factors and advice<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-7v1g4r-1e8e23da56428078ab39345838d5691b\">\n#top .av-special-heading.av-7v1g4r-1e8e23da56428078ab39345838d5691b{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-7v1g4r-1e8e23da56428078ab39345838d5691b .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-7v1g4r-1e8e23da56428078ab39345838d5691b .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-7v1g4r-1e8e23da56428078ab39345838d5691b av-special-heading-h5 blockquote modern-quote  avia-builder-el-4  el_after_av_heading  el_before_av_font_icon '><h5 class='av-special-heading-tag'  itemprop=\"headline\"  >by Felix B. Waldeier<\/h5><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a\">\n.av_font_icon.av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a .av-icon-char{\nfont-size:40px;\nline-height:40px;\n}\n<\/style>\n<span  class='av_font_icon av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a avia_animate_when_visible av-icon-style- avia-icon-pos-left av-no-color avia-icon-animate'><span class='av-icon-char' aria-hidden='true' data-av_icon='\ue819' data-av_iconfont='entypo-fontello' ><\/span><\/span><br \/>\n<section  class='av_textblock_section av-k61ywyoh-aa80164a0bbcfe1a68ac25d8daf20471'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>In the previous article \u201cA Blessing or a Curse\u201d, we dealt with the typical challenges, problems and risks faced by family members as managers in their own family businesses. In order to avoid such critical situations for the company \u2013 and for the family members working within the business \u2013 clear structures and rules of the game are required. At the latest in the second generation, a family business must clearly separate the roles and responsibilities of owners and management. First of all, the basic understanding and attitude with which the family members perform these tasks is important. This is easier with family members who are only owners <em>or<\/em> managers. In many cases, however, someone is both a (co-)partner and a manager in their \u201cown\u201d company. In this scenario, it is important to adapt one\u2019s behaviour to whether one is wearing the \u201cpartner\u2019s hat\u201d or the \u201cmanager\u2019s hat\u201d at a given moment. This is much easier if appropriate corporate governance structures are created.<\/p>\n<p>The supporting pillar of these structures should, as already described elsewhere, be primarily an advisory board or, depending on the legal framework, another appropriate supervisory body. The advisory board is the central instance in which the interests of the shareholders are discussed, decided and communicated to the management. The advisory board is the forum in which the company is seen, evaluated and aligned from the perspective of the owners (and thus \u201cthe family\u201d). To this end, the advisory board does not necessarily have to be \u201carmed\u201d by transferring essential shareholder rights. If the circle of shareholders is clear enough or is made capable of action by a shareholders\u2019 committee, a considerable leap in quality can be achieved if the topics are analysed, evaluated and thought through in a professionally staffed advisory board. The final decisions can then be left to the \u201cowner\u201d.<\/p>\n<p>Another essential element in the structure of family businesses are the contracts of the family members working in the company. It is highly recommended that they stand up to a third-party comparison, i.e. that family members do not receive a \u201cfree meal\u201d and must be measured against the same standards as non-family managers. The comparison should be made with corresponding managers from other companies. Especially when using external managers, equal treatment of these and the family members is highly recommended and should therefore also be ensured by an advisory board made up of respected, competent and external members. This is not only about ensuring an appropriate level of performance, but also about strengthening the credibility and \u201cstanding\u201d of the family member as a manager. A high degree of transparency is important here (instead of, as is sometimes still found in family businesses, an almost compulsive \u201csecrecy\u201d): the more openly the matter is handled, the higher the confidence of the other managers \u2013 and the other family members \u2013 in the performance of the family member active in the management of the company.<\/p>\n<p>A further important point is a systematic succession and talent management approach which includes the appropriate preparation of family members before entering the management of the company. Of course, this includes relevant training but, in our experience, it is also beneficial (almost essential) to gain work experience outside the family business. This is not only about broadening your horizons and gaining management experience, but also about qualifying for management tasks beyond the protection of the family interest. This is a filter in the selection process, but also an important source for the self-confidence of the junior manager, and for their reputation in the family business vis-\u00e0-vis employees and family. If the junior manager then continues his or her career in the family company, care must be taken to ensure that he or she is faced with real and growing, but also \u201cachievable\u201d challenges. It must be possible to make mistakes, but failure \u201cin front of running cameras\u201d must be avoided.<\/p>\n<p>From the perspective of the family member working in management, there are a few useful rules of thumb. It is helpful to consciously deal with the different spheres \u2013 e.g. the management, the advisory board, the shareholder circle and the family \u2013 in which the family manager operates. Of course, there are overlaps between these spheres and some people belong to more than one of them. However, it\u2019s important to separate these spheres intellectually and to adjust to each individually. One is \u2013 rightly \u2013 a somewhat different person when one tackles a day-to-day operational problem in a management meeting versus the consideration of a strategic trend in the Advisory Board. Or if you explain to a passive member of the shareholder circle what is going on in the company (e.g. why the profits unfortunately have to be retained next year), versus sitting with the family at the kitchen table.<\/p>\n<p>Another helpful rule of thumb is to deal consciously with emotions \u2013 both your own and those of other family members and stakeholders. Emotions play an important role in family businesses and in order to manage them you have to accept and understand them. Communication is of central importance in any case, but especially in family businesses because the family is so important for the company, and vice versa. And there are typically a number of people who are interested in something they don\u2019t understand and where they want to have a say \u2013 and often are allowed or even obliged to have a say. Those who do not communicate carefully, respectfully and frequently will be tripped up sooner or later. Trust plays an important role. Those who want to be successful in a family business have to learn to earn trust, to reward trust, to claim trust and to give trust. This is in close interaction with good communication and a good handling of emotions. And it helps combat the feeling of \u201cCEO-loneliness\u201d. What also helps in this context is mentoring and the exchange with peers. Many family entrepreneurs find great benefit and solace from networks and business associations that consciously promote such an exchange.<\/p>\n<p>Last but not least: You also have to make the jump. Great entrepreneurial achievement is not only building \u2013 but also handing over. Think about what you want to do next, find the right time to hand over the reins with a good feeling, and consciously prepare for that moment.<\/p>\n<\/div><\/section><br \/>\n<div  class='avia-buttonrow-wrap av-k61ze9w6-f76018f3fb98b17a0aff0b6ac95eb808 avia-buttonrow-right  avia-builder-el-7  el_after_av_textblock  avia-builder-el-last '>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5tp24b-a64c233a6d5651fda4c364a0a410b0e7\">\n#top #wrap_all .avia-button.av-5tp24b-a64c233a6d5651fda4c364a0a410b0e7{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/es\/trustedadvisor'  class='avia-button av-5tp24b-a64c233a6d5651fda4c364a0a410b0e7 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color'  ><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue830' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >back<\/span><\/a>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-4xzxvf-897c795174f864bef42765e8430e2a60\">\n#top #wrap_all .avia-button.av-4xzxvf-897c795174f864bef42765e8430e2a60{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/wp-content\/uploads\/2020\/03\/TTA_2015_01_Navigating_EN.pdf' class='avia-button av-4xzxvf-897c795174f864bef42765e8430e2a60 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color' target=\"_blank\" rel=\"noopener noreferrer\"><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue82d' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >Download PDF<\/span><\/a>\n<\/div><\/p><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c\">\n.flex_column.av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c av_one_fifth  avia-builder-el-8  el_after_av_three_fifth  avia-builder-el-last  flex_column_div av-zero-column-padding '     ><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":5570,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[54],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.6 - 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