Build a Family Business That Lasts
Companies that endure do these five things right.
by
Courtesy of Jorge Mayet and Richard Taittinger Gallery, New York
Summary.
Judging from how they’re portrayed in the media, it would be easy to dismiss family businesses as hotbeds of power-playing, backstabbing, and favor-currying, ultimately destined to fail; think of the Murdochs and News Corp, or the Redstones and National Amusements, to name just two. But many family businesses have enjoyed success for decades, even centuries. The authors explore five aspects of ownership that are crucial to whether a family business thrives or perishes: the type of ownership (whether a sole owner, a partnership, or another arrangement); the governance structure; how “success” is defined; what information the owners will (and won’t) communicate to other family members and stakeholders; and how to handle the transition to the next generation.