The Importance of Communication in Family Business Success

Maintaining Family Communications – Productive, Inclusive and Contributory

Family businesses are unique in that they often have a deep sense of history and tradition, which can make them particularly rewarding to be a part of. However, with that history and tradition comes a host of challenges, one of which is effective communication. For a family business to succeed, clear and open communication is essential. In this blog post, we'll explore why communication is so important in family businesses, and what you can do to improve it.

Why Communication is Important in Family Businesses

 If asked, most people think they are pretty good at communicating. The results say otherwise. Here’s where we are:

• Communication problems are reported to be among the top three issues that hinder business productivity.

• Most senior managers take it for granted that communication in their area of responsibility is okay – it’s working, so they are not looking for ways to achieve ‘top-level’ communication-connection.

• Everyday communication problems rob companies of higher-level effectiveness and affects quality of relationships as well. 

So, what do the smart companies do to be top performers in this critical arena? AFB has developed a curriculum and training programs to enable PRIME performance in this critical area. Here are some essential considerations to develop highly effective communication in your business:

1. Establish Regular Communication Channels: Establishing regular communication channels can help ensure everyone stays informed and up to date.

2. Encourage Open Communication: Encourage everyone in the family business to communicate openly and honestly. Encourage questions, concerns, and feedback from everyone involved.

3. Practice Active Listening: Active listening means truly listening to what someone is saying without interrupting or dismissing their thoughts or ideas.

4. Set Clear Expectations: Clearly communicate what is expected of everyone involved in the family business. This can help prevent misunderstandings and ensure everyone is on the same page.

5. Celebrate Successes: Celebrate successes and milestones in the family business together. This helps build a positive culture of communication and collaboration.

Effective communication is essential to the success of any family business. By establishing clear communication channels, encouraging open communication, practicing active listening, setting clear expectations, and celebrating successes together, family businesses can build a strong foundation for success. By prioritizing communication, family businesses can overcome the unique challenges they face and thrive for generations to come.

If you would like to learn more about our executive development program that focuses on the best knowledge and skills to be predictably successful, please email us: info@myAFB.org.