Founders often express concerns about the rising generation’s perceived lack of ownership of the family business, while the rising generation attributes this perception to limited involvement in decision-making processes. A skilled advisor helps bridge this perceptual gap by encouraging dialogue and aligning expectations. Picture Credit: Anne Marie Price
A family business board doesn’t operate in isolation, it is part of a dynamic system where multiple stakeholders interact to oversee the business. Interactions depend on family values, generational dynamics, and business goals. Customization is key to the “right” board structure and practices. Pic Credits: Mirage by New Ravenna
While the responsibility to maintain board culture rests primarily with the chairman, it is shared among all members. In a strong board culture, everyone has a voice, and differences of opinion are handled constructively, allowing members to share their perspectives without fear of judgment or conflict. Picture credits: Andrew Ridley
True value comes from integrating principles into daily interactions, regularly revisiting it to ensure it remains relevant to both family and business needs, and instilling a sense of responsibility in all family members to uphold it. Picture credits: Loïse Raoult
Creating The Constitution Is Not Enough. Commitment And Action Are Key Read More »
Social learning Theory, by Albert Bandura, reveals that learning happens not only through formal teaching but by observing and imitating role models. The actions, work ethic, and decision-making of senior family leaders shape the attitudes and behaviors of the rising generation. Picture credits: fixthephoto.com
Role Modeling In Family Business: A Two-Way Street Read More »
……it constrains growth and prevents the business or family from evolving. To avoid this, there must be a conscious effort to honor legacy while also adopting a forward-thinking mindset. Picture credits: 52Frames
By adopting a proactive governance approach: Conflict is mitigated, by defining roles, responsibilities, and processes. Knee-jerk reactions to family disputes or business challenges can be prevented. Long-term stability is ensured, as decisions are guided by strategy rather than emotions. Pic Credits: Eugene Chystiakov
Create a sense of responsibility, purpose, and long-term vision early on by educating the next generation on the business’s history, mission and values. Involvement in the business through internships and formal training helps develop a deep connection, while exposure to different aspects of the business enables them to appreciate the complexity and responsibilities involved.