Trust: the cornerstone of institutionalization in family businesses

Trust: The cornerstone of institutionalization in family companies
is the basic pillar of human relations. It is the greatest source of love, loyalty, success and continuity. The role of trust in the family, in the business world, in friendships and even our belief in ourselves is indisputable. However, we see that trust plays a more critical role in the process of institutionalization in the business world, especially in family companies. So, how is confidence in a family business? Why is institutionalization so important in this regard?
The meaning of trust in family businesses
manifests itself in a family business, not only among individuals, but also in the form of work, leadership and long -term vision. When there is no confidence between bosses, managers and employees, the decision -making mechanism weakens, motivation in the company decreases and long -term success is endangered.
Trust is provided in a family business with the following three basic elements:
1. Transparency: Everything from financial data to strategic decisions is open and accessible.
2. Consistency: The progress of the decisions taken from day to day and the progress within a strategy.
3. Justice: Providing equal opportunities between family members and professional managers, the establishment of a merit -based structure.
If these three elements are constructed strongly, the most important step in the family business is the most important step towards institutionalization.
How does institutionalization increase confidence?
When institutionalization in family companies is mentioned, complex systems, official and bureaucracy usually come to mind. In fact, the most important purpose of institutionalization is to increase the trust in the company.
• clarifying roles: Institutionalization, who is responsible for which duties in the family and in the company, who can take and clarify them. The determination of duties and powers improves the environment by reducing chaos.
• Authorization and professionalization: In order for a family business to grow, the powers must be shared. Instead of the boss to be included in each subject, the authority of expert professionals increases the confidence in the company.
• A Fair Performance Evaluation System: The best way to provide confidence between family members and professional employees is an objective performance evaluation system.
Bad decisions, uncertainty and conflicts of interest occur in non -institutional family companies. This seriously damages the trust environment in the company.
Sustainability is not possible without trust,
the most important element for a family business to be long -lasting is trust. The confidence of family members, the trust in the professional team, the promises given to customers and suppliers determines the future of the company.
In environments where trust is damaged;
• Domestic conflicts increase,
• Professional team experiences loss of motivation,
• Customer losses are experienced,
• It becomes impossible to make long -term plan.
Therefore, institutionalization in family companies is essential not only for the continuity of the company, but also for the protection of the environment of trust.
Last Word: Safety -growing companies
should be a fundamental stone for a company to grow, ensure its continuity and exist for generations for generations. This trust should be built not only in the family but also with employees, business partners and customers.
If you want to move forward with confident steps to the future as a family business, you should see institutionalization as a necessity, not a choice. Because companies that do not institutionalize, who have lost their trust environment will soon be in danger of disintegration.
If you want to build confidence in your company, to regulate your institutionalization processes and to plan the future with solid steps, you can start this transformation with expert support. Being a reassuring company is possible with the steps you take today!
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