Trust is imperative for the success of any system. A marriage deteriorates rapidly when trust breaks down. It is difficult to manage employees who do not trust each other. Conversely, companies thrive when consumers trust their brands. Trust allows a freedom to think, act and be without fear of judgment.
The healthiest family enterprises are those that individually and cooperatively work at building that trust. In a family enterprise, trust between family members is a huge competitive advantage.
Transparency is a builder of trust. Transparency, by definition, means nothing to hide, even when mistakes have been made. Trust and transparency go hand-in-hand.
Here are five tips for building trust and transparency in your family enterprise.
Trust and transparency are vital for a healthy family and a healthy business. Focusing efforts on the above will help to build strong foundations that future generations can build upon to ensure success in the business and in their families.
Deb Houden is a senior consultant at The Family Business Consulting Group. She will present “Trust and Transparency in a Family Enterprise” at BizTimes Media’s Family & Closely Held Business Summit on Thursday, June 14, at the Italian Community Center in Milwaukee. For more information, visit biztimes.com/family.