The family business: Relative values

The family business: Relative values

The family business is a common module for locally grown concepts in the hospitality industry. With successful family businesses expanding and evolving into established companies, we are witnessing the integration of their mentality into the corporate business structure. Manal Syriani, senior consultant at N4TC explains.

When well planned, a family business mentality can be good for business.

Rationale
The family business mentality has its origins in the characteristics of a family business that form an integral part of a typical upbringing in our society. A family business is perceived as a traditional business that focuses on the community. Similarly, new trends focus on: back to roots concepts; traditional values; and developing customer recognition systems that foster a community feel and homely atmosphere to encourage customer loyalty and repeat business. As a result, the family business mentality is gaining ground.

Checkpoints
We highlight in the table below, the main differentiations between the family business mentality and a purely corporate mentality. While the characteristics of a family business mentality in themselves promote high level of values and belonging, their implementation is coupled with the heavy involvement of business owners. In certain businesses, the owner is involved in the day-to-day operations. When you are planning to grow, significant efforts will be required to integrate those values across all brands and entities. In addition, systems will have to be put in place to translate the owner’s vision into practical policies and procedures.

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What to take away
The personality of a company undoubtedly resembles that of those at the top. When the corporate vision fosters development and believes in growth, the company will follow. We have also to accept that any business will expand and follow an independent path and growth curve. Business owners will have to be able to spot that curve and allow it to flourish.

n4tc.com


Manal Syriani

N4TC Senior Consultant

FAMILY BUSINESS VS. CORPORATE MENTALITY

  • CORPORATE MENTALITY
    • Emphasis on systems and procedures
    • Development is based on strategy
    • Strategies are based on the company position and stage in its life cycle
    • Systematic traceability and accountability
    • Main goal for the business is financial gain
    • Sense of success is gained through quantitative results (financial and number of physical outlets)
  • FAMILY BUSINESS MENTALITY
    • Emphasis on team members
    • Development is based on opportunities
    • Strategies are influenced by owner preferences
    • High level of trust in individuals and their loyalty
    • Main goal for the business is financial gain and owner’s passion
    • Sense of success is gained from quantitative and qualitative results (quality of achievements)
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