Obviously, having and being inside one of the great Family businesses it has its benefits, but it also has many areas of opportunity, especially in Latin America, for the company to really be successful.
The United States is the country with the most family businesses in the world, in Europe there is also this vision of having organizations whose administration and management is in the hands of one or more members of a family.
It is not surprising that in Mexico also this happen. In fact, we are the fifth country with the most family businesses in the world, according to a study by the Business Families Foundation.
However, these companies, and in Latin America in general, are usually different from those in the United States and Europe, and that is precisely what I want to share with you in this note.
Challenges of family businesses
I would like to start by emphasizing that there are many benefits to having a family business, such as increased leadership longevity and long-term perspective. But there are also several areas of opportunity, especially when it comes to working with the people involved. It is much more challenging. Why? Because you not only move the context of an organization, but also the context of a family. Here’s the CHALLENGE (yes, capitalized).
When we are in a family business, it is believed that moving a piece of the business will also move a piece of the family. That, ladies and gentlemen, is exactly the big mistake. And let’s see, not all Mexican family businesses think like that. That is why there are Mexican companies that have grown enormously, because what has worked for them is a “certain” coldness and objectivity.
A cool head in business is the key to success
We cannot ignore that we Latinos love drama. If we are dramatic in love, why not be so professionally? BIG MISTAKE! We want to inject the emotional and passionate factor into everything, even at work.
We are not cold-headed, period. Latin America has much more emotional response when they like something or when they don’t like something.
It is difficult for us to keep the objective defined because we tend to take things personally. The key is to have an objective, clear and, although it sounds harsh, cold vision. Something that our upstairs neighbors tend to do very well and the Europeans, not to mention.
The ideal is that the family context is not involved at all. Mark and very well that line between the professional and the personal. It should be very clear to us that family decisions have nothing to do with business decisions and vice versa. That’s the big mistake.
What other mistakes are there within Mexican family businesses?
There are people on the board who are not actively involved in the company. Shareholders for the simple fact of having the last name that bears the name of the company, but that does not contribute, hinders or, worse still, wants to get involved in decision-making without knowing why the company is going through. Without knowing absolutely nothing about the context of the company. Remember, having the last name does not mean that you own the company.
It is extremely important that the family member who is going to be part of the organization is someone qualified for that position and, above all, that they get involved and ask for concrete results like any other employee. Because it happens.
Many times for the simple fact of being the son, the cousin or the uncle, results are not asked of him or there are no defined KPIs.
Another thing that I have had to see: the impossibility of taking someone out of their family context. “It’s because he was left without a mother, that’s why we have to help him.” “It is that he is his grandson and his father abandoned him.” What causes all this emotional charge that, from the outset, should not exist within an organization? Gaps arise in the operation of a business.
5 pillars that a family business must have
1. cool head
Be very clear that family issues are not discussed in the business and business issues are not discussed in the family. Separate contexts so that the most objective decisions are made that will benefit the business.
2. Trained people
The people who are hired must be qualified for the position. People can’t be there just because of their last name. I have had to see many times how they send their son to study something related to the position he is going to occupy/inherit when he does not even have the aptitude for that or, worse, is not interested in the business.
3. To be a good boss you have to be an excellent employee
I am a faithful believer that everyone must earn their place, that all employees of a family business, including family members, must go through a trial process. That everyone must be employed so that they then know how to lead a team. No one is born a good CEO just because. There are many companies in which the son of the owner is the head of several without having been before.
4. Have clear values that everyone follows, WITHOUT DISTINCTIONS
And I emphasize the ALL. The son or grandson is not excluded from these values just for the simple fact of being a son or grandson. Beyond who does what, there must be this mindset of who we are as a company, what this organization is about. Something very valuable, the values of a family can permeate the values of a business. Not for nothing, a family business was started.
5. Clear numbers
If we are really giving people their responsibility, each person must deliver reports and results.
An effective family organization must value everyone by their results, not by their blood or their last name.
That the results are a measure of the evolution and performance of a company.
Martha Ro Speaker and Mexican Mindset Coach committed to raising the mentality of Mexico and awakening leadership in our country. For 15 years, she has been looking for ways to transform reality with a much more purposeful perception. She is an expert in group training, leadership; in teams, companies and in developing the purpose, values and objectives of new and renewed brands. She calls to action through tools, content and practical information to raise awareness, leadership and personal purpose that can be applied in favor of the community with extraordinary results.