The Rules of Engagement:
Why Establishing Entry Criteria is Crucial to Your Family Business
When’s the best time to write a prenup? Hint; it’s not the day before the wedding – much less the day after. Defined entry criteria for family members – what we call the rules of engagement - are the business equivalent of prenups, and should be spelled out and in place well in advance of need. Failure to establish these rules ahead of time is an invitation to disaster, particularly in a family business where post facto standard setting can easily be construed as a personal attack. But if members of the younger generation coming aboard understand what’s required of them and can perform up to the expectations of senior management, of other family members and of the rest of the company, then things run smoothly.