A Study of Practice Utilization in Family Businesses

Abstract

An exploratory analysis of practice utilization in 231 family businesses in Washington State is presented. The authors argue that the extent of practice utilization varies with multiple measures of business development. Several practice areas are highlighted—mission statements, family- and nonfamily-management practices, and succession planning. During early business development, utilization is higher for family-focused practices (family boards of directors, councils, training, and development). Data suggest that business-focused practices (written job descriptions, incentive compensation, and formal employee reviews) are utilized more in businesses at later development.