Establishing Shared Purpose
A family's shared purpose is the reason they are in business together. Establishing this is essential before any issues can be resolved.
The family must clarify:
- “Why do we, as a family, want to be in business together?”
- “What is the “glue” that bonds us to each other and to our shared investment in the family enterprise?”
- “What returns are we looking for?”
The shared purpose in a family enterprise is usually a combination of financial and emotional reasons. For example, the family may want to be in business together to provide financial security for the growing family and because they are proud of their brand or reputation as a family business.
We can help families to reflect and engage in meaningful discussion with a view to establishing their shared purpose. When the family understand why they are in business together, there is no doubt that this can be a great strength. The “glue” binds them together and makes them willing to stick with the family enterprise through thick and thin.