The Unique Nature of Vision Statements and the Family Business

In a family-owned business, the desired direction will include family-related matters that other privately owned businesses do not have to consider. As with other privately owned businesses, the Personal Vision Statement of the family member controlling owner—whom I refer to as the FMCO—should take into consideration his or her ideal involvement level in the company. The unique difference is that in a family business the succession plan will often involve a family member.

It’s common for the FMCO to consider what family members will be doing in the business long-term (5 to 10 years in the future), whom he or she will be working with and the desired income for them to draw from the business. The FMCO may want family members employed in management—even if they are not the best qualified for the roles. The FMCO’s Personal Vision Statement will conceptually reflect these long-range plans for the family members and also serve as the foundation for plans made that relate to the roles of the other family members in the business.

All family business owners have different dreams. What one FMCO wants from their company to meet his or her dreams is not likely to be the same as what other family business owners might want to fulfill their dreams. As much as possible, all family members must understand and embrace the Personal Vision Statement of the FMCO as it relates to the business. For this to happen, the FMCO must share these portions of his or her Vision Statement with the relatives working in the business.

The Personal Vision Statement of the FMCO should answer the question, “Why does your business exist, with respect to you?” It may also answer the question, “Why does your business exist beyond you with respect to what it provides for the FMCO’s family?” For example, funding a quality of life that is meaningful for the family—that is meaningful to the FMCO.

To maintain a balance within the family business, each family member employee should write a separate Personal Vision Statement of what that family member wants for his or her future involvement with the company. Only the FMCO of a particular business can decide how much importance he or she wants to give the Vision Statements of each family member in the business.

The more understanding the FMCO has of the dreams for each of the family members, the more likely they will all be working in the business with their “oars moving in the same direction.” Without an acceptance for the long-range dreams of each family member, there can be no strong, fully cooperating relationship among family members who are in business together.

The Company Vision Statement should be consistent with the FMCO’s Personal Vision Statement, but will generally not reflect family matters. The next generation of family members employed in the business will use the written Company Vision Statement to understand what the business goals for the FMCO and why it is there.

They need to follow and support the FMCO’s Company Vision Statement until such a time, if ever it comes, when it is their turn to make the decisions they want to find their dreams. If they cannot support the FMCO’s vision, they should find other employment.


By Allen E. Fishman
Founder & Executive Chairman
The Alternative Board