What Is Your “Why”?

The importance of shared values and a mission statement for the family business

We all love to be inspired. In 2009, leadership expert Simon Sinek gave a TED talk called “How Great Leaders Inspire Action” that quickly went viral. His idea was that good leaders inspire people to act by giving them a sense of purpose or belonging—a “why.” Motivated by a sense of purpose, Sinek reasoned, people can do amazing things. They can overcome significant challenges. They can remain optimistic when there is no reason to be.

Importance of Shared Values for the Family Business

If you are an owner in a successful family business, you will understand the importance of having shared values and a mission statement for the long-term success of the family and the company. By clearly defining the “why” for your family company, you establish a foundational purpose that serves to help maintain unity in your family and that inspires your employees to excellence.

Defining the “Why” of your Family Business

As a starting point for defining your “why,” we often recommend that you begin by capturing the history of your family business. Reflecting on the following questions should highlight the values that have remained consistent in your family business story.

• How was the business founded and funded?
• Why was the particular business chosen?
• How has the business evolved over time?
• What challenges have been encountered on the ownership journey?

Your unique family business history offers important insights into the people and experiences that have shaped your family and company culture.

Informed by your family business heritage, you now have the proper perspective to define the shared values that will influence the future mission and vision of your family business. As owners, you will want to spend time engaging in thoughtful discussion to identify values that are most important to your family business culture. If you have multiple owners in your family company, it is natural and healthy to have different opinions and goals as you work through this process. Below are some questions that we think you will find helpful.

• Why are we in business together?
• What do we believe in and what is the purpose of our family business?
• What are sources of pride for our family?
• Where would we like the family business to be in 50 years’ time?
• Are the values expressed by the family shared with the business?
• Do our family’s real world actions align with what we say?

You may also find that interviewing key members of the family, the business and/or the community provides helpful insights as you work to distill the values that are authentic to your family business.

Putting it into Action

With the shared values of the family business identified, you are now in a position to develop a mission statement that clearly communicates the essence of what your business is all about. Your mission statement should be a unique declaration that articulates what your business stands for. It should generally reflect the values of the family that influence the decision making process for the business. Done correctly, your mission statement will incorporate the unique aspects of your culture that sets you apart in your industry.

We thought it would be helpful to share with you the core values and mission statement of our firm as you begin this important work. As many of you know, Bragg Financial Advisors, Inc. is an independently owned family business. Several years ago, with the company experiencing significant growth, the family recognized the need to revisit the core values and mission statement. Why? To protect and promote the company culture that had been so thoughtfully built over the last 60 years. With the input of various stakeholders, including owners, family, employees, and clients, we updated our core values and mission statement to authentically capture what we are all about.

Our core values and mission statement drive all that we do at Bragg Financial. We work diligently to ensure that it remains at the forefront of our culture. Every employee has a printed copy on his or her desk. We regularly incorporate the key tenets into our company meetings. Our core values and mission statement are the lens by which all decisions all are made. For example our mission statement directs our community support. Most importantly, it drives how we serve you, our clients. We believe it is what sets us apart from our competitors and is why our clients choose to trust us with this important work.

At Bragg Financial, we have first-hand experience of the power of defining your “why” in a family business. If you are an owner of a family business and desire to preserve the legacy of your family business culture, then formalizing shared values and a clear mission statement can serve as the glue that binds the family together and provides purpose for an engaged employee team.

This information is believed to be accurate but should not be used as specific investment or tax advice. You should always consult your tax professional or other advisors before acting on the ideas presented here.