The gap between operating owners and non-operating owners is disruptive. On one side, operating owners struggle to understand how non-operating owners can be effective in their roles. On the other side, non-operating owners wonder if they’re being treated fairly. For a family business to operate smoothly and efficiently, the gap must be bridged.
A family business must start by reviewing their current communication strategy. All owners should have clear and equal access to information about the business. This reduces anxiety and keeps everyone in the loop.
Management and the board can build trust by sharing updates regularly, which ensures consistency and prevents misinformation. Also, respect should be shown to all owners in meetings. This includes owners with non-voting interests or those who are beneficial owners through trusts.
For additional tips on bridging the gap between operating and non-operating owners, read “Connect with Both ‘Owners by Chance’ and ‘Owners by Choice’ in Your Family Business.” You can also download a free inventory example of ownership communication within your family business!
Read about bridging the gap between operating owners and non-operating owners here.
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