Question

Please describe the similarities and differences of making informed assessment in traditional (non-family owned) and family-owned businesses (FOBs)

Please describe and explain why family-owned businesses that are different from traditional businesses, and how these could impact the OD’s ability to effectively assess and evaluate issues.

Please describe the role of family systems theory in consulting for FOBs.

Answer 1

The process for informed assessment is the same in both business types but it's the outcome and the measures employed that differs. In traditional business structures informed assessments are more structured as well as objective. Whereas in FOBs, the informed assessment follows a loose structure and is subjective - as per position and connection.

Because FOBs are more concerned and based around family ties, it can create a weak business infrastructure as it tends to preserve kin over business. This can lead to failed or subpar evaluations and assessments - vitiating the ability of the OD to make an informed decision. This happens as each member in the family despite caliber or aptitude is designated a place in the family business structure, and it provided a certain role that also extrapolated to how others interact with them. This is hearkening back to family system theory, and this seldom works in business settings.