While the majority of family businesses do not survive beyond the third generation, some manage to do so and thrive while at it. How do they do this in an uncertain terrain? By following certain integral guidelines; upholding good governance; spotting and grooming talent from both family and nonfamily sources; seeking out orderly succession planning for family business longevity. All these must be done intentionally with the long term vision in mind.
Families must begin by establishing a set of values that serve as a unifying force and a shared foundation for fostering ties internally and externally. This gives the company a solid core that keeps it afloat in the face of difficulties and tough choices, and it offers a genuine means of setting itself apart in the competitive market.
The family’s actions must be directed by a clear long term vision. In the present business climate, when uncertainty and complexity can be considerable and incremental changes will barely suffice, a shared vision is essential. It enables a family that owns a business to establish definite objectives and goals.
Effective family governance means adhering to established and laid down best practices when making decisions and allocating authority in order to prevent unnecessary conflict, uphold professionalism and keeping exceptional talent.
Lastly, whether you work on or in the business, you must, at a certain level, have clearly defined duties and leadership principles.
