Family Business Developmental Stages

The conventional wisdom of family business around the world is often summarized as

“Wealth doesn’t go beyond the third generation.” This can be demonstrated with

research that shows fewer than one-third of family businesses are able to make the

transition of ownership into the second generation and only 12% of all family businesses

survive into the third generation of ownership.138 While some have pointed to these statistics as proof
of the dangers of family business, they need to be understood in the

broader context of business in general. For example, the expected life of a company on

the S&P 500 list is only 10 years.139 In fact, the survival rate of companies listed on the

Dow Jones Industrial Average from its founding in 1886 through 1996 is about the same

as the statistics for family businesses with one-third of the original firms disappearing

every 25 years.140 However, it cannot be denied that family businesses face some unique

challenges as the business and the family change over time.

The challenge of generational transition in family business is complicated by the separation of the
principal roles of business, ownership, and family. In the founding generation

where one or both parents own and manage the business, these roles are embodied in the

same people. However, as parents begin to make plans to retire and do estate planning,
they often leave their children equal ownership of the business they have created. Usually

one of the siblings (traditionally the oldest male) will be selected to become the next CEO.

In such cases, the expectation often is that the successor will run the business “like dad”

because that has been a successful model. If in fact the ownership of the business has transitioned from
the founder(s) to their children, conflict can arise if the next generation

attempts to lead the way the founder did. Siblings can be very quick to let a brother or

sister know that they do not have the same rights their parents did. Second generation

CEOs must learn that they have something mom and dad never had—shareholders.

When a sibling group owns a business together, they need decision-making and governance processes
that the founders would have only found cumbersome and wasteful.

This is especially true when the business does not employ all of the owners. Issues will

arise about the amount of voice an owner who is not managing the business should have

in the way their assets are being deployed. Also, questions of return on investment

(ROI), shareholders dividends, or distributions versus bonuses to management and reinvestment in the
business may become heated topics. When a business attempts to transition to a third generation of
ownership (cousins), the issues of representation and voice

in decision making can become even more explosive without well-designed governance

processes in place.141 The potential for conflict about the business can also create lasting
divisions in a family unless sufficient planning takes place to maintain and build upon

the trust relationships inherent in the family system.

22-4d A Parallel Planning Process

When a family owns a valuable asset, such as a business, their relationships can become

much more complex. Deliberate planning is required to preserve the natural bond that

exists in families and to make it possible for them to develop a shared vision for their

mutual enterprise. Carlock and Ward describe a parallel planning process where “viable

business strategy is still the outcome, but it is an outcome shaped by the concerns of the

family.”142 Figure 22.2 illustrates the parallel processes leading to the simultaneous development of a
family enterprise plan and a business strategy plan.

22-4e Values

At the center of the family business system model is a set of core values held by the family.

Research shows that family members internalize family values, such as long-term reciprocity, filial
obligation, and hard work for one’s family.143 They represent a key integration

point for aligning the three subsystems listed above. However, values also best illustrate the

differences between family and nonfamily firms.144 The complexity of the family business

is a function of not only the interplay among the family, business, and shareholder systems, but the
different (and often opposing) values that lie at the core of each system.
For example, family and business system values are shown in Table 22.2. Based upon the

values a family employs in making decisions about the business and the family they can be

classified as either “Family First” or “Business First.”145 A family-first value system will

place family above the business and may suboptimize business opportunity to benefit the

family. A business-first value system is based upon the belief that a well-managed business

will produce the most benefit for the family now and in the future.

Values of security and equality dominate the family-first approach. There is a strong

inward focus on the family’s dynamics, strong goals of keeping the system in equilibrium

(even if it is an unhealthy equilibrium), and strong interest in maintaining unity and

support. The family’s continuity, even if the business does not prosper, produces a preference for
stability and risk aversion. Relationships are most important, there is a great

deal of emotion built into decisions, and one can only be born into (or married into) this

system. Businesses typically hire the person that best fits the organization’s needs based

on knowledge, skills, and abilities; however, there is no job description to be a good family member. The
family system places high import on family and business privacy. Families tend to hold very close
financial information, family dynamics, and business

information; often they do not want business and financial information shared even

within the family. However, a lack of transparency among current and intended owners
of a family business can breakdown the fundamental bonds of trust that are the foundation of family
business.

On the other hand, the business-first value system is interested in risk and equitability in the
organization. Change, competition, results, transparency, and an outward orientation characterize
business system values. Ideally, decisions are made rationally and

objectively, and the system is composed of an often-changing mix of people who are

hired into (or severed from) the organization. While 85% of those family firms who

have identified a successor say they want it to be a family member,146 the number of

those family successors who would objectively fit the profile of the kind of leader the

company needs based on its goals and strategy may be very different.

Thus, value dilemmas lie at the heart of how family businesses work. A family

involved in a business can pursue its own objectives even when these are at odds with

generally accepted business practices. Compensation, dividends, treatment of family and

business expenses, performance evaluation and promotion, and the budget process are

practices that can be influenced by family factors. Similarly, tensions in the business

can be the result of the emotional relations in the family. Family relations are personal,

often complex, and the result of a lifetime of positive and negative experiences. These

relations influence business decisions overtly and covertly, as every family member is,
in part, defined by their relationship to the business. Moreover, families often structure

their business relationships in ways that fill a void in their family relationship outside of

the business.147 OD practitioners often have to consider such issues as:

• Should the chronic underperforming son or daughter be kept on in their business

role and for how long?

• How much conflict should the family (and nonfamily) business members have to

endure between two siblings in rivalry?

• When the business is suffering, will the family member’s significantly higher compensation be
addressed?

In sum, the family business system model provides an effective diagnostic tool and helps

to explain some of the reasons why OD in family firms can be difficult.

22-4f Critical Issues in Family Business

The interaction of the family, ownership, and business subsystems, particularly at generational
transition points, can be problematic.148 Where these systems overlap as family

members come together as owners both inside and outside of the business, there are

potential interface issues, potential conflicts, and always dilemmas to be faced.

Transitions, particularly those from first to second generation and second to third
generation can present even the most successful families and businesses with monumental changes.
The change from an owner-managed business to a small group of sibling

owners to a larger group of cousins can challenge the basic assumptions that have been

the basis of trust and unity in decision making. It is instructive to consider each of these

major inflection points from the perspective of three states of change:149

• The present or current state—identify the key elements of the organization and family that will be
impacted by the change.

• The transition state—make the decision about where to begin the change process in

each subsystem (family, business, ownership) from the present state to the desired state.

• The future state—a specific statement of the goal of the change process within a

mid-range horizon of one to three years.

Some of the critical change triggers common to family businesses as they grow and

develop are the following.

Entering or Leaving the Business as a Family Member Family members often

report choosing the family business as a place to work with comments like “It just happened” or “I fell
into it.” Family members are a convenient workforce and may be the

only option in the start-up phase of the founding generation but businesses that successfully integrate
family members over the long-run do not base selection practices only on
genetics. Policies on entering the family business, options for career paths, and multiple

points of exposure to the family firm are a few of the best practices.150

There must be clear roles, recruiting processes, training, and development to give

every family member who chooses to be part of the business a clear sense that they

have earned their place. Moreover, the business strategy and organization structure

should influence selection, although only 37% of family firms report having a written

strategic plan.151 Most importantly, every family member should feel they have the

opportunity to “opt out” of the family business, without the risk of losing the unconditional love of the
family. To that point, many founders find it impossible to leave;152

close to 88% of family business respondents said that the family will continue to control

the firm in five years.153 Too often a founder’s identity is largely derived from the family

business they began, and many strive to keep the status quo at all costs instead of welcoming change, a
values dilemma for an entrepreneurial business.

Conflicts and Rivalry in the Business Conflicts and rivalries are common in family firms and are often the
result of values dilemmas.154 If a family is relationship based

and a business is results based, how is the family member to be evaluated? If equality is

valued in the family system, how do you choose a business successor? Family member

compensation, roles and responsibilities, authority, and opportunity are some of the
critical issues that ignite conflict between family members. The family system is an

emotional one, and when placed together in a business setting, family members often

revert back to the family roles they played growing up. Another source of conflict lies in

the secret nature of families. Substance abuse problems, for example, are much more likely

to be kept quiet in the family business155 and only 62% of significant shareholders report

knowing the senior generation’s share transfer intentions.156 The complexity of the family

business system requires additional structures, practices, and processes to ensure open

communications, conflict resolution, and business performance.

Ownership Transfer and Estate Planning In addition to distinguishing between

family and business roles, members of the family system may have a third role to play,

that of “owner” or “shareholder.” Owners’ rights and responsibilities are different from

family and business ones. Ownership rights typically include electing directors, creating

bylaws, voting on specified major business decisions, and realizing a fair return on

investment. Typical responsibilities include making informed decisions, creating and

keeping agreements, respecting limits of authority, and developing business competencies

to adequately fulfill their role as a shareholder.157

One value dilemma evidenced in the owner arena has to do with “equal vs.

equitable.” When ownership transfer issues arise, members of the shareholder group

often struggle between transferring family business stock to members of the entire family

versus only those family members who are active in the business. The former option can

create challenges between inside-owners who work in the business and outside-owners

who do not. Owners who earn their living from the business and are responsible for

the success of the business often feel that outside-owners do not deserve any return for

their investment because they inherited their shares.

Sometimes families attempt to resolve this dilemma by “equalizing” the total

estate. For example, a family with two active and two inactive business members of

the next generation all receive an equal share of the total estate, yet the two active

members receive 100% of the business assets and the estate is “equalized” by transferring more of the
nonbusiness assets to the inactive siblings. While this may seem equal

at the time of the transfer, it can lead to future disputes if either the business or the

other assets significantly outperform the other. Moreover, most business founders

tend to reinvest everything in their business and may not be able to match the value
of the business with other assets. Others attempt to avoid conflict over the business

by establishing two classes of stock and leaving voting shares only to heirs who are

working in the business. However, the long-term prospects for a family business

where owners of a significant portion of the business have no voice in how their assets

are utilized are not good.

No amount of planning by the previous generation can replace the need for the current owners to
develop trust through a common vision for their business and an appreciation of the interest and needs
of each other.

Selecting a New Leader The vast majority of family firms (85% according to one

survey) choose successors that are family members.158 However, a 2007–2008 survey

conducted by PriceWaterhouseCoopers found that 25% of the family businesses surveyed

were expecting a transition within the next five years but only about half of them had a

succession plan in place.159 Many families avoid the topic altogether due to its emotional

intensity.160 Some of the key reasons include a founder/owner who won’t “let go” of the

business, a reluctance to discuss the mortality of the current generation, the lack of competency in the
next generation, rivalry among siblings for key leadership positions,

succession timing, incongruent business visions of the current and successor generation,

and pressures from various family branches.

Forward-thinking family business leaders spend the time to identify the optimum

type of leader needed to take the business into the future. This can only happen after

creating a shared business vision and strategy and then identifying the best leadership

candidates. Once the current leaders have accepted the need for change, decisions can

to be made as to where the potential candidates will come from. Will the next leader be

a family or nonfamily member? If the choice is the former (and it typically is), what

mentoring and development will ensure the family candidate is successful? Business is

about risk and change, yet family is about stability and status quo, which explains part

of the reason why choosing a new leader creates difficulties. Succession is marked by a

shift of power and influence, followed by a period of shared power161 and for many leaders, the
proposed transition is met with great resistance.

Business Growth and Family Wealth As noted earlier, most family businesses

struggle to transition the generations. Absence of successors, family assets too concentrated in the
business, family conflict, passive versus active owners, empire building,

lack of professional management, or the absence of a shared vision and sustainable business model can
all contribute to a family business’s demise. When the business fails,

there is little chance for the family’s wealth to grow.

To grow the business and the family’s wealth requires careful thought and strategic
planning.162 The company must move from an entrepreneurial business to a professionally managed
firm, develop governance structures, formalize systems and processes,

and recruit talent (from inside and outside of the family). Owners must continually

develop assets independent of the business. As the business grows, so do liquidity

options such as venture capital, debt or equity financing, internal stock sale, sale of the

company, or employee stock ownership plans (ESOPs).163

OD Interventions in Family Business System While research shows that advisors

play a key role working with family businesses, complexity is the norm, a result of the

interconnectedness of the family, business, and shareholder systems.164 Necessarily

addressing the entire family business system is a key difference from the work of a

nonfamily business practitioner. The skill set required for a family business advisor is

comprehensive and includes OD competencies (e.g., behavioral sciences, systems thinking, strategy, and
organization design), family systems knowledge (e.g., life cycle development, birth order issues, family
dynamics), conflict resolution skills, and family meeting

facilitation. In addition, the family business consultant should acquire working knowledge in the areas of
estate and financial planning, legal forms of organization, exit

strategies, family philanthropy, family offices, financial analysis, and multidisciplinary

(professional) teaming.
Perhaps the key to the success of a family business consultant is the ability to establish

a trusting, caring relationship with the client system, to accurately surface the issues and

dynamics at the heart of the family business dilemmas, and to effect positive, sustainable

change. Consultants must know their own values, ethics, goals, and personal development

areas, including their beliefs about families and families in business and insight into their

own family system issues and dynamics. Such awareness increases the family business OD

practitioner’s ability to handle issues that arise in a family firm engagement.

In addition, given the many demands and diversity of the family business system, it

can be beneficial to use a team consulting approach in certain cases. For example, a

60-year-old founder may relate best to a senior advisor perceived as an “equal,” whilesuccession timing,
incongruent business visions of the current and successor generation,

and pressures from various family branches.

Forward-thinking family business leaders spend the time to identify the optimum

type of leader needed to take the business into the future. This can only happen after

creating a shared business vision and strategy and then identifying the best leadership

candidates. Once the current leaders have accepted the need for change, decisions can
to be made as to where the potential candidates will come from. Will the next leader be

a family or nonfamily member? If the choice is the former (and it typically is), what

mentoring and development will ensure the family candidate is successful? Business is

about risk and change, yet family is about stability and status quo, which explains part

of the reason why choosing a new leader creates difficulties. Succession is marked by a

shift of power and influence, followed by a period of shared power161 and for many leaders, the
proposed transition is met with great resistance.

Business Growth and Family Wealth As noted earlier, most family businesses

struggle to transition the generations. Absence of successors, family assets too concentrated in the
business, family conflict, passive versus active owners, empire building,

lack of professional management, or the absence of a shared vision and sustainable business model can
all contribute to a family business’s demise. When the business fails,

there is little chance for the family’s wealth to grow.

To grow the business and the family’s wealth requires careful thought and strategic

planning.162 The company must move from an entrepreneurial business to a professionally managed
firm, develop governance structures, formalize systems and processes,

and recruit talent (from inside and outside of the family). Owners must continually

develop assets independent of the business. As the business grows, so do liquidity

options such as venture capital, debt or equity financing, internal stock sale, sale of the

company, or employee stock ownership plans (ESOPs).163

OD Interventions in Family Business System While research shows that advisors

play a key role working with family businesses, complexity is the norm, a result of the

interconnectedness of the family, business, and shareholder systems.164 Necessarily

addressing the entire family business system is a key difference from the work of a

nonfamily business practitioner. The skill set required for a family business advisor is

comprehensive and includes OD competencies (e.g., behavioral sciences, systems thinking, strategy, and
organization design), family systems knowledge (e.g., life cycle development, birth order issues, family
dynamics), conflict resolution skills, and family meeting

facilitation. In addition, the family business consultant should acquire working knowledge in the areas of
estate and financial planning, legal forms of organization, exit

strategies, family philanthropy, family offices, financial analysis, and multidisciplinary

(professional) teaming.

Perhaps the key to the success of a family business consultant is the ability to establish

a trusting, caring relationship with the client system, to accurately surface the issues and

dynamics at the heart of the family business dilemmas, and to effect positive, sustainable

change. Consultants must know their own values, ethics, goals, and personal development
areas, including their beliefs about families and families in business and insight into their

own family system issues and dynamics. Such awareness increases the family business OD

practitioner’s ability to handle issues that arise in a family firm engagement.

In addition, given the many demands and diversity of the family business system, it

can be beneficial to use a team consulting approach in certain cases. For example, a

60-year-old founder may relate best to a senior advisor perceived as an “equal,” while

younger next-generation leaders may connect better with someone closer to their age

who has worked with other clients with similar experiences. If significant conflicts exist

in the family, including an advisor with expertise and qualifications in individual and

family therapy may be a valuable asset to the team.

Entering and Contracting The special entry and contracting issues involved in family businesses include
the need to create quickly a safe emotional environment, to ask

sensitive questions related to the family systems early in the engagement, to get permission to re-
contract as issues emerge, to get permission to work with other family members, and to be clear about
the requirements of collaboration. Unlike nonfamily firms,

the “client” in a family business is the entire family business system. The mission of an

OD practitioner dictates a systems approach, so any relationships begun in this phase

must integrate family issues around the business issues. The contract will typically be
with the major shareholders of the family firm; therefore, additional efforts are required

up front to ensure buy-in and collaboration in the process. Establishing trust early

increases the chance of moving forward successfully.

Diagnosing the Organization Diagnosing the family-run organization requires the

particular tasks and skills necessary to understand the family system in addition to the

business system. “Presenting” issues and problems that appear to be business related

often require careful probing and unbundling to get an accurate picture of “what is.”

Trust building, begun in the entry phase, continues in the diagnosis stage by bringing

the family together for an orientation meeting. This meeting, often the first time the

family has congregated around business issues, helps them to understand they are not

alone in the dilemmas they face, affords time for establishing trust within the family

and between family members and the OD practitioner, and builds communications

skills. Tools to help gather data include confidential interviews of a range of stakeholders,

individual and business profiles, and a genogram, which is a visual representation of the

family history, similar to an organization chart.165 The genogram enables the practitioner

to understand the intergenerational dynamics and to analyze how the family came to be
who they are by identifying the patterns and issues that have been passed down. The

individual, confidential interview is perhaps the most powerful tool for gathering data

and intervening in the system. It is critical to assess not only the pressing business issues,

but those that are in the family system and the shareholder arena, as well as determining

what boundaries exist between the subsystems, including how communications flow.

Key questions for understanding the family business system include:

1. Describe what long-term “personal success” means to you and your own personal

vision of the future.

2. What is most important to your family?

3. Tell me about the best time that you’ve had with the family. Looking at the entire

experience, recall a time when you felt most alive, most involved, most excited.

What made it a great experience? Describe the event in detail.

4. Describe what “business success” for your company means to you. For example,

what would your company look like if it was operating at its very best? What is getting in the way of that
success? What is your role?

5. As a shareholder in this business, what do you want most from your investment?
6. How much agreement (alignment) exists between the family, the business leaders,

and the shareholders about the vision, values, policies, goals, and strategy for the

family business?

Feedback and Planning Providing feedback to family business members often

includes a one- to two-day offsite session to review a “discussion guide” (as opposed to

a completed document) that summarizes key issues, priorities, and recommendations.

This session should be the second time the group has come together and can be viewed

as an opportunity to facilitate the practices of good communications, group decision

making, and conflict resolution. The more the practitioner can help those in the system

build competency in these areas, the stronger and more sustainable the family business

system will be. Among the typical issues found in diagnostic results and the discussion

guides are lack of role clarity; lack of shared vision for the family, the shareholders, and

the business; a dearth of communications; conflict between family members; and systems, processes,
and structure deficiencies. The goal for the meeting is for the family to

identify and agree on key issues, priorities, and next steps. Building good communication

practices (e.g., regular family meetings) and resolving conflict are two common starting

points for work with family firms. These interventions are good places to begin to
“name” the particular value dilemmas inherent in the particular system. Table 22.3 identifies the most
common interventions in family business systems today.

1. Strategic. Strategic interventions, including mission and vision development, capability identification,
and goal setting, are an appropriate place to begin work with a

family business system as many family business issues stem from a lack of alignment

around shared vision and values. Members of each subsystem—the business, family,

and shareholders—need to dialogue and create a shared view of the future and an

appropriate set of goals. In reality, there is a good amount of overlap between members of each
subsystem so the family business OD practitioner must continually clarify roles, responsibilities, and
boundaries. Strategic business planning is appropriate

only after the family and shareholder subsystems have aligned on a set of values,

goals, and shared vision for the family business. In addition, the process should be

an iterative one with open communications between the appropriate family and

shareholder governance structures.

2. Systems. System interventions include traditional OD approaches in the business,

such as human resource policies and procedures, technical operations, information/

management systems, and organization culture. Many family firms can benefit from

formalizing their business systems, including performance management, succession

planning, leadership development, rewards, core process improvement, information

technology implementation, and recruiting. Family and shareholder systems tend to

be less formal. Interventions in the family subsystem can focus on communications,

education, family succession, compensation, and philanthropy while shareholder

agreements, estate planning, ownership succession, and communications are appropriate in the
shareholder subsystem.

3. Structure. Governance structures are necessary for all three subsystems so that effective
communications and coordination can occur among these complex systems.

The business system benefits from a professional management team, led by a qualified CEO who reports
to a board of advisors or board of directors. Outside board

members should be roughly balanced with inside board members; the former should

be skilled at earning the trust of the family and working with members of the both

the senior and junior generation.166 The shareholders’ subsystem requires its own

governance structure—a shareholders’ forum. Here, active and inactive shareholders

can meet to develop their goals, review the performance of their investment and

make important decisions about family ownership. Finally, the governance structure

for the family—the Family Council—is a place for the family to plan for their future,Feedback and
Planning Providing feedback to family business members often
includes a one- to two-day offsite session to review a “discussion guide” (as opposed to

a completed document) that summarizes key issues, priorities, and recommendations.

This session should be the second time the group has come together and can be viewed

as an opportunity to facilitate the practices of good communications, group decision

making, and conflict resolution. The more the practitioner can help those in the system

build competency in these areas, the stronger and more sustainable the family business

system will be. Among the typical issues found in diagnostic results and the discussion

guides are lack of role clarity; lack of shared vision for the family, the shareholders, and

the business; a dearth of communications; conflict between family members; and systems, processes,
and structure deficiencies. The goal for the meeting is for the family to

identify and agree on key issues, priorities, and next steps. Building good communication

practices (e.g., regular family meetings) and resolving conflict are two common starting

points for work with family firms. These interventions are good places to begin to

“name” the particular value dilemmas inherent in the particular system. Table 22.3 identifies the most
common interventions in family business systems today.

1. Strategic. Strategic interventions, including mission and vision development, capability identification,
and goal setting, are an appropriate place to begin work with a

family business system as many family business issues stem from a lack of alignment
around shared vision and values. Members of each subsystem—the business, family,

and shareholders—need to dialogue and create a shared view of the future and an

appropriate set of goals. In reality, there is a good amount of overlap between members of each
subsystem so the family business OD practitioner must continually clarify roles, responsibilities, and
boundaries. Strategic business planning is appropriate

only after the family and shareholder subsystems have aligned on a set of values,

goals, and shared vision for the family business. In addition, the process should be

an iterative one with open communications between the appropriate family and

shareholder governance structures.

2. Systems. System interventions include traditional OD approaches in the business,

such as human resource policies and procedures, technical operations, information/

management systems, and organization culture. Many family firms can benefit from

formalizing their business systems, including performance management, succession

planning, leadership development, rewards, core process improvement, information

technology implementation, and recruiting. Family and shareholder systems tend to

be less formal. Interventions in the family subsystem can focus on communications,

education, family succession, compensation, and philanthropy while shareholder

agreements, estate planning, ownership succession, and communications are appropriate in the
shareholder subsystem.

3. Structure. Governance structures are necessary for all three subsystems so that effective
communications and coordination can occur among these complex systems.

The business system benefits from a professional management team, led by a qualified CEO who reports
to a board of advisors or board of directors. Outside board

members should be roughly balanced with inside board members; the former should

be skilled at earning the trust of the family and working with members of the both

the senior and junior generation.166 The shareholders’ subsystem requires its own

governance structure—a shareholders’ forum. Here, active and inactive shareholders

can meet to develop their goals, review the performance of their investment and

make important decisions about family ownership. Finally, the governance structure

for the family—the Family Council—is a place for the family to plan for their future,

to nurture and develop its members, and to continually determine to what extent

the business will be able to fulfill their needs.

4. Process. Process interventions can be very effective with family firms. This is especially true if the
source or resolution of the client’s problem is unknown and the nature

of the problem is such that the client would benefit from involvement in its diagnosis.167

Process interventions in the business system include coaching both the founder/current
leader and the next generation leader, team building, conflict resolution, and board

development. Typical family process interventions include conflict resolution, communications and
family meeting facilitation, and family charter development. The shareholder subsystem requires
process interventions in the areas of forum development,

communications/boundary management, and conflict resolution.

Implementing and Evaluating Change There are various levels of consultant

involvement in implementation. It is important to understand where involvement will

support intervention success, where organization members can be “coached,” and where

members can take primary responsibility for implementation. High involvement is

almost always needed in the first stages of implementation, where activities typically

include establishing goals and milestones, creating a shared vision, establishing boundaries for family
and business roles, and facilitating productive communications. Also in

the early stages, the OD practitioner can communicate the importance of establishing

and keeping to an implementation timetable and meeting regularly to resolve the many

family business–interface issues that arise. Once the implementation phase is well underway, a six-
month or annual retreat can help to assess change process and effectiveness,

reconnect with the family, and create plans around new family, business, and/or ownership transitions.
The continual transitions that occur in a family business provide a

unique opportunity for an OD practitioner to become a long-term, trusted advisor.