Questions for the Family
1. Do we have a valid business plan?
2. Do we have a mission statement?
3. Are our company values clear?
4. Do we have a strategic plan for the business?
5. Do we have a family business constitution?
6. How will we make decisions? Who will make decisions?
7. Does the business have specific sales and profit goals?
8. Are the family business goals agreed on by the family?
9. How do family members feel about selling the business outside of the family?
10. Should we work with consultants? Under what circumstances?
11. Is there a fair compensation and reward system for family as well as nonfamily members?
12. Is the compensation system based on market value?
13. Is there an employee performance appraisal system?
14. Who should evaluate family employees?
15. Do we have nonfamily managers, and do we encourage them?
16. What are the rights and responsibilities of nonfamily employees?
17. Are there policies for family members to join or exit the business?
18. Should the next generation be required to obtain a university education before entry into the firm?
19. Should the next generation be required to have some outside work experience before entry into the firm? If so, how much?
20. Do we have written hiring and firing policies and procedures?
21. Do we have written job descriptions?
22. Should a board of advisors or directors be instituted?
23. Should we start a family council?
24. Are our sales increasing?
25. Is the industry outlook positive?
26. Is the industry highly competitive?
27. Is the business financially healthy?
28. Is the next generation interested in the business?
29. Are all family members welcome to join the firm?
30. Is there a succession plan?
31. Is a system for successor development in place?
32. Are women treated equally in the business?
33. Are there avenues in place to increase family communication?
34. Is there a significant amount of interpersonal conflict? Sibling rivalry?
35. Is there a conflict management and resolution system?
36. How does the family feel about selling shares to the public?
37. What role does debt play in the firm? How much or how little?
38. How much risk do we feel comfortable having?
Questions for the Next Generation
1. Is it your intention to enter the family firm?
2. Why do you want to join the firm?
3. Do you have necessary experience and education?
4. What are your strengths and skills that can aid the company?
5. Are you willing to make sacrifices for the firm, such as receive low pay or work long hours when necessary?
6. What is your long-term vision for the company?
7. Are your values in line with the founder’s values and the company’s stated mission?
8. Have you gained any outside work experience?
9. Do you feel pressured to be the successor? Is it your choice?
10. Do you believe the business should stay in the family?
There are numerous questions, and these would require a significant amount of time and attention in order to answer. The families who have successfully managed intergenerational successions and moved to more professional levels of management have successfully worked through many of these questions.