Jon M. Huntsman, founder of the Huntsman Corporation, passed away in 2018. When I asked his son, David Huntsman, about the lasting influence of his father on his role as president of the Huntsman Foundation, he said, “Having grown up in a family business, my father’s influence continues to be ever-present in my life — whether I recognize that consciously or not. I know exactly what he would say or do in just about every business situation, because I watched it firsthand for years. His impact, although he is no longer here, still affects even the little decisions I make throughout the day — things I do or choose not to. Part of him will always be with me, not just in business but in all aspects of life.”
Wrestling with Legacy in a Family Business
Strong traditions can provide a sense of identity, inspiration, and direction — but they can also hold your company back.
September 29, 2022
Aaron Marin
Summary.
Legacy is an intangible, invisible force that affects the decision making of the next generation in a family business. Psychologists call the motivation to build legacy generativity, and it stems from the concern for the welfare, well-being, and security of future generations. Developing and sustaining legacy is a way for family members to perpetuate the family identity and purpose. But are legacies always positive? The paradox is that legacy has been shown to lead to both positive and negative outcomes for organizations and individuals. Legacy is an asset to a family business when it serves as a source of identity, inspiration, and direction. The downside is that legacy can also be a liability — this is the inherent paradox of legacy. Firms can become so entrenched in tradition and “the way things have always been” that they constrain innovation, change, and organizational agility. The challenge for family business leaders is to manage this legacy paradox.