Phase Three: Maturity

In this third life cycle stage, the family business is reaping the rewards of the progress made during the earlier phases. Like the Growth stage, this phase may last for decades. The casual approach of the early stage and the informal family atmosphere may disappear or be reduced so that the business’ owners can focus on developing consistent processes that enable attaining their objectives.
As a result, family and nonfamily employees may undergo a formal review process, have written job descriptions, and an employee handbook. A computerized data base can facilitate communicating with customers and a professional marketing director will enhance the company’s brand and reputation. The family may remain in leadership and key decision making roles, but may be more hands-off at the manager level, encouraging others (family and nonfamily employees) to handle day-to-day tasks, including assigning a CFO (family member or nonfamily member), to assume responsibility for the financial data and likewise leverage the expertise of a CIO, CMO and COO. As this occurs, the family may want to periodically review their governance policies, operations and business processes, fraud vulnerability, and internal controls.