Tuesday, March 30, 2010

"Family" as the Core of Corporate Culture

Family owned or operated businesses (private or public) and corporations with non-family members like to refer to themselves as a "family“ and this being the main building block for the corporate culture. You will hear and read, "we are like a big family" in their corporate literature, employer branding campaign, and from employee statements.

Whereas social and religious conservatives often use the term "family values" to promote a conservative ideology, businesses refer to "family" to demonstrate moving away from a command and control management approach.

In most instances however, organizations are selective about which elements of the "family values" they overtake and promote. More often than not, families are fueled by feelings rather than performance, forgiveness rather than accountability, and conformity rather than thinking outside-of-the-box. The problem for businesses is that sustainable organizations thrive on performance, accountability, and creative thinking.

Importantly as well, families tend to be hierarchical, particularly based on seniority, and instill self-control and moral obligations while demanding respect, discipline, and attentiveness. While the former is unavoidable, the latter is an ideal to strive for in the majority of organizations. Only the strongest cultures can however inspire and engage their employees.

Hence, the corporate concept of "family" primarily refers to how people communicate and interact internally. Associated beliefs include being loyal and trustworthy, caring for each other, and spending time together (including after work). In a way, being a "family" is a promise for a more supportive and less formal/cut-throat environment. In such organizations, employees know more about co-workers than they need to in order to perform well. They become pals.

Secondly, the "family" values in corporate context are particularly visible during two extreme stages of an employee's lifecycle; attraction (apparent in the employer brand promise of a compelling workplace) and separation (demonstrated primarily through alumni networks, e.g. BBH’s blacklist).

One final point, redundancy can become a major issue and limitation for the "family" concept at corporations. Though the concept of “family” differ across cultures, families around the globe have one thing in common, it is a bond that cannot be broken. When the family is struggling, family members are expected to hold things together and to help each other out. Excluding family members is taboo and hardly ever the question. Lay offs are common practice at many different “corporate families”.

1 comment:

Iconoclast said...

Hi Magdalena

In my line of work, we often deal with the management and succession of owner operated businesses. There's a growing trend in Asia for "family office" services which helps families keep their financial and business affairs together and instill "family governance" rules for the families to follow. I'm sure you'll find some interesting readings if you search those topics.