Commandments for the family business
Guiding principles for future generations (Exodus 20:1-17)
The scene at Mt. Sinai is overwhelming for the Israelites. Thunder, lightning, smoke, and earthquakes. Threats and warnings to keep their distance. Moses disappearing into the chaos. What comes next — the Ten Commandments — will become fundamental instructions to millions of people over thousands of years:
And God spoke all these words, saying, “I am the Lord your God, who brought you out of the land of Egypt, out of the house of slavery.
You shall have no other gods before me.
You shall not make for yourself a carved image, or any likeness of anything that is in heaven above, or that is in the earth beneath, or that is in the water under the earth…
You shall not take the name of the Lord your God in vain…
Remember the Sabbath day, to keep it holy….
Honor your father and your mother, that your days may be long in the land that the Lord your God is giving you.
You shall not murder.
You shall not commit adultery.
You shall not steal.
You shall not bear false witness against your neighbor.
You shall not covet…anything that is your neighbor's.” (Exodus 20:1-17)
God memorialized the commandments on stone tablets for the Israelites, to be remembered well into the future. Later, He does it again because the first set of tablets was destroyed by Moses when the Israelites began worshipping a golden calf. These commandments were an important and enduring guide for the behavior of the community.
When applying the idea to family companies, I’m reminded of Dr. Leon Danco, a pioneer in the field of family business consulting. I had the chance to talk with him about a case as I was just starting my career, and his book Beyond Survival is still in print. Dr. Danco had his own list of “family business commandments” for senior generation owners, and I thought you would enjoy them:
Thou Shalt Share Thy Dream with Thy Family.
Thou Shalt Inform Thy Managers and Employees, “This Company Will Continue Forever.”
Thou Shalt Develop a Workable Organization and Make it Visible on a Chart.
Thou Shalt Continue to Improve Thy Management Knowledge, That of Thy Managers and of Thy Family.
Thou Shalt Institute an Orthodox Accounting System and Make Available the Data to Thy Managers, Advisors, and Directors.
Thou Shalt Develop a Council of Competent Advisors.
Thou Shalt Submit Thyself to the Review of a Board of Competent Outside Directors.
Thou Shalt Choose Thy Successor(s).
Thou Shalt Be Responsible That Thy Successor(s) be Well Taught.
Thou Shalt Retire and Install Thy Successor(s) With Thy Power Within Thy Lifetime.
Thou Canst Not Take It With Thee – So Settle Thy Estate Plans – Now.
Thou Shalt Apportion Thy Time to See That These Commandments Be Kept.
Which of Dr. Danco’s “commandments” resonates with you or your family right now? If you listed your own guiding principles for the continuation of your family business, what would they be?
This is my last post focused specifically on Moses. This series began six months ago with this post. After a short break, my next series will pick up on the theme of “wilderness” as it applies to family members in business together. Thanks for reading!