3 minute read
How to build a successful family culture in business
BY BARDEEP PANESAR
“Culture eats strategy for breakfast.”
Business owners often become fixated on numbers. After all, business is traditionally defined as an enterprise aimed at making a profit. It’s easy to overlook the wisdom in this quote, often attributed to management consultant Peter Drucker, though it reflects the thinking of several business visionaries.
We tend to ignore culture because it’s intangible and harder to measure, while financials are ever-present and easy to discuss. On the other hand, culture can feel—well, a bit ‘fluffy’. Most business plans don’t mention culture, and many owners struggle to grasp its importance. However, ignoring the impact of a strong company culture can have devastating consequences. A business can seem poised for success, with rising numbers, only to collapse unexpectedly.
One famous example of a company undone by toxic culture is Eagle Boys Pizza, which once rivalled Domino’s and Pizza Hut. Founded in 1987, the chain grew aggressively, peaking at 340 outlets by 2013. However, after new investors took over in 2007, the company shifted its family-oriented approach to position itself as a gourmet pizza brand. Franchisees’ concerns about this and other changes went unheard, eroding trust. Leadership continued to distance itself from franchise owners, and ultimately, the brand collapsed. In this case, culture really did eat strategy for breakfast.
Nowhere is the culture more visible than in family businesses. Culture is like character— it is how a company behaves when no one is watching. Think of it this way: have you ever visited a country where the driving left you terrified? I recently returned from Bali, and my cab driver gave me several near-heart attacks with his close calls. Road rules may be similar worldwide, but driving behaviours vary greatly. In India, for instance, four lanes of traffic often become seven rows of cars, side mirrors are retracted to squeeze into tight spaces, and driving against oncoming traffic is commonplace. The road rules between India and Australia aren’t all that different, but the driving culture is. To drive successfully in another country, you must adapt to its culture, not just follow the rules. Likewise, simply changing policies and procedures won’t improve a company’s culture.
Culture is shaped by unspoken rules and group behaviours. Family businesses naturally create strong cultures because they’re built on foundations of trust, communication and shared values. These businesses can unlock even greater potential by recognising what works in their unique culture and addressing what doesn’t. Improved communication, stronger family bonds and a shared commitment to common goals can make family businesses truly unstoppable.
Other businesses can learn from this example. Many strive to create a family-like culture by incorporating fundamental values into their vision and mission statements. But simply writing words on paper isn’t enough —culture needs to be seeded and nurtured. To successfully build a family-style culture, leaders must demonstrate an authentic, unwavering commitment to those values. Employees can easily spot when leaders merely pay lip service to the culture or fail to “walk the talk.”
Culture spreads by example - it is contagious. Inauthentic leadership alienates and demoralises employees, while genuine, honest leadership motivates and inspires them. Leadership and culture are the real ingredients of success. By fostering cultures of belonging, trust, safety and resilience, businesses can create something truly powerful.
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