To grow, thrive, and survive for many generations, family businesses must strike a delicate balance between tradition and innovation.
The business was originally built on the founders’ values, vision, and mission, but to keep evolving and surviving, you need to combine these traditional values with the need for innovation and adaptation to changing market conditions. This is easier said than done. Generational differences and lack of effective communication play a major part in the struggles that family businesses face.
Here are some tips to think about and discuss at your next family meeting:
1. Review Family and Business Core Values, Mission, and Vision Statements
Core Values: The WHO—the internal guiding principles that shape the ethics guiding your company’s actions and priorities. These values are the foundation upon which the business was built and should continue to guide all decision-making processes.
Vision Statement: The WHY of your company, your purpose and passion. This statement should inspire and provide a long-term direction for the business.
Mission Statement: The HOW—the action plan for how you’ll achieve your vision. This should outline the practical steps the business will take to fulfill its vision while staying true to its core values.
2. Encourage and Be Open to New Ideas and Fresh Perspectives from the Younger Generation
The younger generation often brings a fresh perspective and innovative ideas that can drive the business forward. Encourage them to share their thoughts and be open to their suggestions. You might be amazed at what they can contribute. Their familiarity with new technologies and current market trends can be invaluable in identifying new opportunities and staying competitive.
3. Look for Growth Opportunities
Identify areas where the business can grow, such as buying competitors or expanding into markets adjacent to your existing business. Growth opportunities can also come from diversifying your product or service offerings. Regularly reviewing and updating your business strategy to include these opportunities can help ensure long-term success.
4. Embrace Technology
Explore new technologies that can enhance your business by streamlining, simplifying, or automating processes. Technology can improve efficiency, reduce costs, and open up new avenues for growth. Whether it’s adopting new software, investing in automation, or leveraging data analytics, staying ahead of technological advancements is crucial to stay relevant and thrive.
5. Celebrate Tradition
While embracing innovation, it’s important to celebrate and document your family business’s history and traditions. This helps maintain a sense of connection and continuity, reinforcing the business’s unique identity. Celebrating milestones, honoring past achievements, and preserving family stories can strengthen the bond between family members and the business.
Balancing tradition with innovation is about preserving the legacy while embracing the future.
By combining the wisdom and experience of older generations with the fresh ideas and energy of the younger generation, family businesses can navigate the challenges of today’s market and continue to thrive for generations to come.
What’s your secret to combining tradition with Innovation?
I would love to hear your family’s story – tammy@blueroots.ca
Cheers!
Tammy