The long-term sustainability of family businesses depends on engaged family members who are willing, able, and ready to contribute as active owners and leaders.
Effective communication is one of the most important tools to sustain a family business over the long term.
Navigating the Pandemic: How Family Businesses Have Responded, and Considerations for the Next Phase
Originally published in Tharawat Magazine
Originally published in Harvard Business Review
Originally published in Harvard Business Review – Click here for the original article By George Stalk, Jr. and Sam Stewart – April 23, 2019 To thwart possible disruption, pundits give…
Help the next generation find their right roles.
Family businesses are defined by three overlapping domains of influence: the family, the owners, and the business. Families spend a great deal of time and money trying to sort out questions of family governance and ownership structures. But often, managing the business gets short shrift.
Family-controlled companies surpass their peers because they focus on resilience, not short-term results. During economic booms, this approach leads them to forgo some opportunities (and hence do slightly worse than their counterparts), but it puts them in a position of strength during downturns, when they shine. The researchers identified seven specific ways in which family-run businesses build their resilience:
An emerging set of best practices can turn the age-old problem of generational succession into an opportunity to thrive.
In the 1980s, companies discovered time as a new source of competitive advantage. In the 1990s, they will learn that time is just one piece of a more far-reaching transformation in the logic of competition.