Introducing family governance in a 24-year-old printing house
We created a 'Family Constitution' that defined the rules for hiring cousins and dividing dividends. Fights at dinner ceased after 3 meetings.
The Druk-Pol printing house from Zabrze is a traditional company where two generations work. However, business success began to spoil relationships at the family table because no one knew who had the right to decide on new investments and how to fairly divide profits.
The challenge
7 family members worked in the company, including three brothers and their cousins. The main problem was the lack of clear boundaries between home and work. For 14 months, the owners were unable to make a decision about purchasing a new machine for 840,000 PLN because everyone had a different vision of development. It reached a point where employees from outside the family received conflicting orders from different bosses, which reduced efficiency by nearly 19%. The situation was worsened by uncontrolled 'advances' toward dividends taken by one of the younger family members, which led to a hole in the budget of 42,000 PLN in one quarter.
Our approach
Our 4-person team from Reliability and Vision started with individual conversations with each of the 7 family members. Meetings took place on neutral ground at our office on Wolności St. Without fluff, we laid our cards on the table. We analyzed the share structure and the actual work contribution of each person. We applied the 'Assets stay in the family' principle, focusing on securing the future of the seniors and giving the younger ones room to maneuver. For 7 weeks, we mediated in matters that were previously swept under the rug, such as a cousin's lateness or lack of competence to manage the warehouse.
The solution
We provided a 14-page Family Constitution that became the foundation of their business. We introduced clear rules of the game: each family member must have completed relevant studies or have 3 years of experience in another company before getting a desk at theirs. We set a fixed deadline for dividend payout on October 15, which stopped the asking for money for current private expenses. Additionally, we created a reserve fund into which 4.59% of monthly revenue goes, intended exclusively for modernization of the machine park. The parents received a guaranteed capital annuity, allowing them to realistically think about handing over the reins to their sons.
Results
After 5 months, the printing house not only bought the new machine but also regained financial liquidity. The atmosphere in the company calmed down because everyone knows what they are responsible for and how much they earn.
Timeline
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June 2023Audit of relationships and finances inside the printing house.
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August 2023Workshops on the Family Constitution and role division.
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September 2023Approval of rules for hiring and remunerating family.
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November 2023Official signing of succession documents.
"We were skeptical because three other companies offered us only general advice. Reliability and Vision went deep into our numbers and wasn't afraid to tell us the painful truth about the arguments. Now Sunday dinner is family time again, not a war council."