Assess Your Family Business

Assess Your Business

This questionnaire measures how well a family business is implementing effective business practices that help to maximize success and profitability. It is an important indicator of the business's health, analogous to going to the doctor for a checkup.

Answer each question honestly. Then click "Calculate My Score" to receive your score. Items highlighted in red will be areas for improvement.

1. It is imperative that the business be kept intact and handed-over to the children.	Y N
2. Family members are careful to avoid discussing family matters at work.	Y N
3. Family members are paid equally.	Y N
4. The children lived apart from the family for an extended number of years prior to their entry into the family’s business.	Y N
5. The business will hire a better-qualified outsider before it will employ a family member.	Y N
6. The business is a tool that helps keep the family together.	Y N
7. Jobs and roles are assigned to family members working in the business without regard to gender.	Y N
8. The activities and happenings of the business are a constant subject of attention and/or conversation throughout the family.	Y N
9. Many of the ideas and solutions that are used to improve the business and/or solve problems come from the children.	Y N
10. Everyone is evaluated and rewarded strictly on their job performance.	Y N
11. Family members engage in behavior that would not be tolerated in any other company.	Y N
12. The children working in the business are able to (and do) make decisions without hesitation.	Y N
13. The best interest of the business always takes precedence over family members' desires.	Y N
14. It’s important for the business that family members get along and allow problems to resolve themselves over time.	Y N
15. In-laws and spouses (i.e., non-blood family members) are involved in business matters.	Y N
16. "Only family members have the commitment we need to make our business a success."	Y N
17. People in the business have clearly defined roles, accompanied with full and proper authority.	Y N
18. Prospective successors are deliberately involved in development activities outside of the company to help strengthen their skills.	Y N
19. There are multiple generations of family members actively involved in the business and the oldest generation is firmly calling the shots.	Y N
20. The business owner ignores the possible impact upon family members when making decisions.	Y N
21. It's assumed that the children will come work for the business.	Y N
22. Loyalty to the family is considered a critical trait among senior managers.	Y N
23. Children having a history of deep-seated conflict will be/have been brought into the business and/or given ownership.	Y N
24. Business advisors tend to be old friends of the family.	Y N
25. Family members only receive jobs for which they are qualified.	Y N
26. Everyone working in the business is held strictly accountable for their job performance.	Y N
27. Birth order has no factor in determining job assignments and roles.	Y N
28. The company has employed the senior managers for many, many years, and the team has been in place for a long time.	Y N
29. The children are (were) encouraged to pursue careers outside of the business.	Y N
30. Family members are used as administrators/trustees of the family’s estate.	Y N
31. Clear boundaries are not drawn around people marrying into the family regarding their involvement/participation in the family’s business.	Y N
32. Family members are careful to avoid relating to each other as family members at work.	Y N
33. The children working in the family’s business spent several years working for other companies.	Y N
34. Everyone working in the business is paid prevailing market wages and perks for the work they perform.	Y N
35. The owner is prepared to sell the business if they don’t believe family members can effectively run it in their absence.	Y N

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