Disclaimer: The stories do not relate to one family business & Connings is just an example of a multigenerational business that has started to implement EOS into their Family Business with great success.
Introduction
Family businesses are unique—they blend personal relationships with business goals, which can create both unparalleled loyalty and significant challenges. Picture a family-owned company passed down through generations. The business has grown, and now multiple family members are involved. Who takes the lead? How do you maintain harmony while driving growth? These are the kinds of challenges where the Entrepreneurial Operating System (EOS) shines.
Clarity in Vision and Roles
One of the main reasons EOS works so well for family businesses is its focus on clarity. It starts with ensuring everyone is aligned on the company’s vision. Imagine a scenario where a father and his three children all have different ideas about the future of the business. Without alignment, progress stalls, and conflicts arise. EOS forces the tough conversations to happen early on, creating a unified vision that everyone commits to.
Another critical aspect is getting the “right people in the right seats.” In a family business, roles are often filled based on relationships rather than skills. EOS turns this on its head by focusing on what’s best for the business. Through an Accountability Chart, which goes beyond a typical org chart, roles are defined by the necessary skills and responsibilities, not by who’s next in line. This helps to remove any ambiguity and ensures that everyone knows their role and how they contribute to the overall vision.
Data and Accountability: The Pillars of Success
Family businesses can sometimes operate on gut feelings or informal understandings, which might work in the early stages but can lead to issues as the business grows. EOS introduces a culture of data-driven decision-making. By tracking weekly metrics, known as the Scorecard, the leadership team has a clear, objective view of the company’s performance. This approach helps identify issues before they become crises and keeps everyone focused on the business’s key priorities.
Accountability is another cornerstone of EOS. In family businesses, it can be particularly challenging to hold someone accountable—after all, you have to face them at Sunday dinner! EOS makes accountability a structured, non-personal part of the business, ensuring that everyone is held to the same standards, regardless of their last name.
Resolving Issues with Respect
Conflict is inevitable in any business, but it can be particularly fraught in a family business. Emotions run high, and avoiding difficult conversations can lead to long-term damage. EOS provides a structured environment for addressing these issues through its Issues Solving Track. This process encourages open, honest dialogue in a way that respects both the individual and the business. For example, in one family business, two siblings disagreed on a major strategic decision. By following the EOS process, they were able to resolve their differences, leading to a stronger, more unified leadership team.
Consistency in Processes
As a family business grows, maintaining consistency becomes crucial. Processes that worked when the business was smaller can become bottlenecks. EOS insists on documenting and following core processes, which ensures that the business runs smoothly even as it scales. This also helps in training new family members or employees, as everyone follows the same, clearly defined processes.
Real-World Success Stories
Take the example of a family manufacturing business where the three siblings involved realised none of them was best suited to be the CEO. Instead of allowing this to become a point of contention, they used the EOS process to hire an external CEO. The result? The business not only thrived but the siblings were able to focus on their strengths, leading to both business success and family harmony.
Another success story involves a family-owned retail chain that doubled its size within five years of implementing EOS. By placing family members in roles where they could excel, rather than where tradition dictated, the business was able to expand rapidly while maintaining the family’s core values.
Why EOS is Essential for Family Businesses
EOS works because it forces family businesses to make the tough decisions that are often avoided. It prioritises the business’s future over individual desires, ensuring that the company remains sustainable, scalable, and saleable. It’s not just about implementing a system—it’s about committing to a process that puts the business first while preserving family relationships.
If you’re ready to take your family business to the next level, consider diving into “Traction” by Gino Wickman or hiring a certified EOS Implementer to guide you. EOS isn’t just a tool; it’s a commitment to your business and family’s success.
For more information on how EOS can benefit your family business, book a call with Debra below.
Written by Debra Chantry-Taylor, FBA Accredited Family Business Advisor, Certified EOS Implementer & Founder of Business Action.
Business Action is focused on helping Entrepreneurs lead better lives, through creating a better business. We have a small team of accredited family business advisors, EOS Implementers & Leadership coaches, as well as access to a huge range of advisors through our Trusted Partners Network.
