The unique challenges of a family owned business
Family owned businesses have a unique set of dynamics. As well as dealing with all the issues that relate to growing a successful business, there are also improtant factors realting to the family that need careful attention such as the transition from one generation to the next.
A different set of challenges
Working for a family business presents particular challenges. Questions these companies typically ask include:
- How should we manage succession from one generation to the next?
- How do we professionalize our family business for growth without losing the family spirit and values?
- Should we create a family office to manage the family interests?
- What is the best way to share rewards for family and non-family members?
- Can we attract a CEO who is a not a family member?
- How do we draw the line between ownership and management?
Finding the balance between family and business
Hay Group helps family owned businesses address these challenges, partnering with them to address:
- vision and strategy development
- governance and organization structure
- succession planning and founder plans
- transference of family goodwill*
- leadership development and reward strategies
- talent management
* Family goodwill is the relational, human and social capital that typically contributes to the economic value of the business.
Family owned business: a special heritage
Family-owned businesses (FOBs) have a unique set of dynamics. As well as dealing with all the issues that relate to growing a successful business, there are also important factors relating to the family that need careful attention such as the transition from one generation to the next More
Strauss Group: Keeping it in the family delivers double-digit growth
When Israel-based food and drink company Strauss acquired another food business, Elite, it wanted to shift focus, expanding nternationally and switching focus from production to a more outward looking emphasis on markets and customers. More
Family business in Asia: the ‘happiness index’
A professionalization strategy that neglects the important aspects of family will result in ‘deep pockets and pained hearts’. Research conducted by Hay Group’s center for strategy execution looks at the importance of ‘kin’- family obligations, rights and social norms in ensuring the survival of a family-owned business beyond the third generation.