Why Culture Is the Cornerstone of Every Family Business
July 15, 2023 Note: This article from Ferguson Alliance was written by Brandi Marek, Talent and Culture Specialist at Ferguson Alliance. Brandi has direct experience with being the younger generation in a family horticulture business. She spent most of her career in management and leadership roles at Texas-based Magnolia Gardens Nursery, a family business with more than 150 employees.
While workplace culture has gained a lot of attention lately, it’s always been a cornerstone of a thriving and prosperous family business. When you stop to think about it, everything truly vital within your business happens as a result of human decision-making and human relationships.
In other words, your culture.
Your family business culture is largely an outward display of the team’s shared attitudes, values, goals, and practices, plus the health of the relationships within your team. As top family business advisors, we recommend that leaders spend the time, energy, and other resources it takes to build and cultivate the kind of culture that not only expresses your values but also propels your company into the Prosperity Zone.
While committing to a culture of excellence can be challenging and take time to fully implement, the rewards are well worth the investment.
Here are three things you need to know about the importance of culture in family business.
A Good Culture Increases the Value of Your Family Business
The people who compose your family business are your greatest asset – even though you won’t find them listed on your balance sheet. Because 75% of your business’s valuation is based on non-financial factors, the right people, in the right environment, with the right tools and processes, can greatly increase the profitability of your family business and ultimately make it more valuable.
Culture Makes Your Business a Great Place to Work
An open and healthy culture makes a family business a great place to work, a great way to serve one’s community and a great partner for your customers and other stakeholders. When you’re in the Prosperity Zone, it’s easy to see and feel your culture: its vibe, its energy. Your employees are engaged, and your customers give you great reviews. This means your family business culture can be a secret weapon when it comes to attracting and retaining top talent in your industry.
Culture Helps Attract and Retain Talent
Team members who are valued as top talent typically look for healthy environments in which they can thrive – where they are encouraged to experiment, debate, learn from failure and consistently push for better results. Your ability to deliver this kind of environment is a powerful recruiting tool – and it often makes the difference when other businesses come courting your strongest team members.
It’s important to remember that when you’re competing for talent, every other business out there represents your competition. But when you compensate team members appropriately and give them a healthy environment that empowers them to do their best work, chances are they won’t want to leave, even when presented with the opportunity.
When team members feel purposeful, heard, understood, and celebrated for their accomplishments, they are much more likely to stay with your business for the long haul. But this kind of culture doesn’t happen by accident. It takes thoughtful intent and continuous support.
Learn three more lessons about company culture by reading the complete article from Marek here.
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