Introduction: Many family businesses have created histories to use in presenting their companies to the marketplace. They often start with the efforts of Grandpa Smith, or Grandma Jones, who started with a great product and diligent work, built a business through hard times and brought it into its present state of excellence.
Along the way, the second and possibly third generations of kids are shown participating in various aspects of the business as they “work their way up,” learning the business from the ground floor. Meant to be sweet and small town charming, they can be as deadly as someone else’s pictures of their family reunion.
Traditional family business histories reflect a paradigm in which the family is the critical component. The perspective is what’s wrong here. As enjoyable as these stories may be, the problem is that they dwell on mom and pop, rather than focusing on mom and pop’s idea. It is the idea that has the power.
To be competitive in our times and in the future, you need to shift your focus from the family to the business component of the family business. In adopting this shift, the history can draw a wider scope of people/participants into the story. Focus on what’s really historical about the business and peoples’ eyes won’t glaze over as the story begins.
We don’t want to diminish the wisdom and industry of Grandpa or Grandma. However, the point is that simply turning the history into a family photo album is more self-indulgent than strategic.
The following tool is a guide for creating a Family Business History that clarifies the purpose of the business, and tells the story of the business, drawing employees, customers and even suppliers into the story where appropriate. In essence, it is the story of the history of the family’s business.
It tells your tale of the company’s origination, its evolution over time, and shines a light on the contributions of a variety of key people who contributed to the life of the business idea. It can still present the values of the family business. It can still highlight the roles of key family members, but it does more, and in doing more gains meaning for many more people.
When your stories are inclusive, telling the history of the business, rather than the family history, by using the enrichment of your peoples’ stories, you enroll them in a sense of ownership that ultimately improves company performance. Listening as you gather stories from your people can provide you with many instructive insights that you, in turn, can use to improve company performance.
Instructions: An individual or a group can use this guide to generate a family business history. The questions in each section are designed to stimulate your thinking.
Don’t limit yourself to these questions; let the discussion take you in directions that tell your company’s unique story. Capture key ideas in the right-hand column. Consider the issues, but don’t turn this into a long-term project. The conversation might take a half-day (stories from long-term customers and employees should be collected over a week or two before sitting down with this form).
Crafting a well-told story may take a bit longer (see Part 2 of the tool). Use step 5 to help you draw others in your company into enriching this history. Get them thinking and talking about the business with a different twist. Then use those notes and the notes generated from Part 2 of this tool to craft a richer, more complete history of your business.