Too often, family businesses practice what I call birdcage management. Outside blood is rarely brought in to help the company grow or to tackle tough business problems.The same family members, with the same old limited skills and experience, try to solve problems they couldn't solve before.
The problem perpetuates itself every time another relative wants to join the firm. Instead of establishing rules of entry, the business owner shakes up the birdcage and forces everyone in the business to fly around and perch, willy-nilly, wherever they land.