In the family business, what is not measured is not governed; and what is not governed becomes disordered.
Few sensations generate as much anxiety as moving forward without knowing if we are on the right path. In the family business, this doubt usually appears in silence: the business continues operating, decisions are made and the years pass… but no one is completely sure if they are moving towards the correct goal or if they are simply repeating the routine.
When the path is not marked
We have all had that experience: driving on an unknown road, without clear signs, slowing down, hoping to find a sign that confirms that we are doing well. At times we believe we are on the right route; Seconds later, the doubt returns.
The same thing happens in many family businesses:
• Are we doing well with this strategy?
• Is bringing in the next generation working?
• Are we really growing or just surviving?
Lack of evaluation leads to anxiety, unproductive discussions, and decisions based on intuition rather than evidence.
Evaluating is not distrusting, it is governing
An essential part of all good corporate governance—and of every family business with a long-term vision—is the constant evaluation of results.
It is not enough to define a strategic plan, a family protocol or a shared vision. Once the plan is implemented, measuring becomes essential to know:
• If we move in the right direction
• What adjustments are necessary
• What decisions need to be corrected in time
Training without measuring is like preparing an Olympic athlete without a stopwatch. You may feel that you are improving, you may believe that you are going faster, but without objective data, the effort loses meaning.
Also read: Freeing the mind: the decision that drives the evolution of the family business
The most common mistake: evaluating at the end
Many family businesses make the same mistake: they wait until the end to evaluate. When negative results arrive, there is no room for correction.
That is why it is so important to establish intermediate goals, true “stopovers of the journey”, that allow key questions to be answered in time such as:
• Are we meeting deadlines?
• Do the financial indicators reflect the strategy?
• Are the family and the company aligned or are they becoming strained?
Evaluating is not punishing or rewarding; is to adjust the course.
Measure clearly: less intuition, more evidence
Effective evaluation requires clarity from the beginning. Before starting any project or strategic decision, the family business should answer four simple questions:
- What are we going to measure?
- How are we going to measure it?
- When are we going to measure it?
- What will we do if the results are not as expected?
The answers must be translated into numbers, dates and concrete actions. Generalities reassure, but do not correct. Precision is uncomfortable, but it guides.
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A practical example in the family business
Suppose the family decides to “professionalize the company.”
That is not evaluated with sensations or speeches. It is evaluated with facts:
• How many key positions have formal descriptions?
• How many strategic decisions are made by the Board and not by the intuition of the founder?
• What indicators show improvement in results, processes or organizational climate?
Without these parameters, the company may feel “more professional” without actually being so.
Evaluate to correct, not to judge
The purpose of evaluating is not to give medals or point blame. It is learning, correcting and moving forward.
When the family business adopts a healthy evaluation culture, something powerful happens:
Errors are no longer failures and become valuable information to make better decisions.
The evaluation is the dashboard of the car on a long trip. It doesn’t tell us if we are good or bad drivers; It tells us how much fuel we have, how fast we’re going, and whether we need to adjust our course before we get stranded.
The family business that dares to look at its indicators honestly does not lose control: it gains direction.
Measurement is not a luxury, it is a strategic necessity. Family businesses that evaluate rigorously not only correct errors: they build trust, align expectations and ensure continuity. Because governing without data is governing blindly, and in the dark, the risk is not losing speed… it is losing direction.
If today your family business had to demonstrate – with data and not perceptions – that it is going in the right direction, what indicators would you show… and which ones would you prefer not to look at?
