We have entered a new era that’s presenting unprecedented challenges, as well as significant opportunities, for family enterprises. Some of the traits of successful family businesses — their long-term outlook, strong financial resilience, stakeholder loyalty, and commitment to positive social impact — will aid their success in this new era. However, other traits — such as their insistence on privacy and control, their narrow definition of stewardship, their prioritization of family harmony over family unity, and their slowness in making big changes and reversing course — will need to change.
Transforming a Family Business in Turbulent Times
Surviving, let alone succeeding, requires constant adaptation.
September 30, 2022
Jakub and Jedrzej Krzyszkowski/Stocksy
Summary.
Families and their enterprises have always needed to adapt to changing times, but in general (and except for disruptive periods), they faced fewer changes and had more time to adapt than they do today. In today’s complex, fast-paced, and hyper-connected world, the nature of change itself has changed. Witness the greater volatility, far-reaching ripple effects, and more frequent disruptions of recent years, all of which make the future much harder to predict. New mindsets, strategies, and practices will be required for family enterprises to survive and thrive in today’s turbulent era. Owners themselves must lead the charge, from the inside, and insist on new directions and transformative action to ensure success in the years ahead. This article covers five research-based transformation strategies that are essential for implementing a new family business model to succeed in turbulent times.