Family businesses have very special attributes and face distinct challenges.
The great strength of a well-managed family owned enterprise is its long term focus. This perspective equips these businesses to navigate change and economic upheaval and allows for fearless decision-making.
But while they form the backbone of the world’s economies and are a critical source of global employment and development, family businesses can fall apart when succession is not planned or well executed.
Facilitating smooth continuity through family transitions comes from organizing and managing a succession plan. Working with a family to grow the skills of excellent shareholders is critical. In the long run, ownership skills will be more important than management skills.
And establishing good interfaces between management, owners and family members through effective governance helps ensure the mechanisms for effective collaboration and decision-making are in place.