Mission And Values Of The Family Business

What mission and values are and how we can formulate the same is explained in the chapter on “Business Leadership”.

This is how mission and values can help a family business:

• Mission gives direction. It is the purpose for the existence of the business. It guides the business owners and leaders at every generation about the purpose of the business all the time. In the absence of any such direction, the following generations may chart a different course in business which would not have been approved by the original founder or which is contradictory to the values, character, capabilities or strengths of the business. Going in that direction, the business may lose its momentum also. Following a consistent mission helps in maintaining continuity.
• Some conflicts in a family business arise due to disagreements over the direction in which the business should move ahead when the next generation takes it over. If different members of the family have different preferences or views about which industry, market, products or services the business should get into then that becomes a reason for dispute. If a clear mission is in place, it can easily guide the family members in making these choices clearly and avoid such conflicts.
• Similarly, a well-defined set of values provides a consistent framework of guiding principles to the business owners and leaders in all generations. These principles help them in decision making. It tells them what not to do or which things should not be compromised with.
• In some specific situations where more than one options exist, which option should be chosen, what the original founder could have done, that inference can be made based on the values adopted and practiced by the business.
• The values provide a reference while drafting or modifying company policies towards customers, employees, vendors etc. The business owners can avoid issues or clauses which are not aligned to the current character or practices of the business. E.g. If customer focus is one of the values of the business, it will always consider customers’ interest first while making or changing any policy which affects the customers. Similarly, if fairness is a value accepted by the company, all its policies will stress on dealing fairly with all parties, including employees, customers, suppliers, society or the government.

(Expert advice to GROW your business wherever you are, whenever you want.

SMEBusinessGuide.com… https://goo.gl/E3pfoQ)

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