Every business strives to be healthy, but unique factors that come into play at family-owned enterprises. One of the advantages of family-owned businesses is that they tend to have a highly concentrated ownership structure, allowing for effective and efficient decision-making. This can be critical in times of rapid change or crisis.
However, if the ownership group’s decision-making is impaired by some external shock (such as the loss or debilitation of a critical member of the group) or conflict among family members, it can stifle the business. A healthy business has an ownership group that is emotionally connected, well informed and capable of taking responsible decisions in the interests of various stakeholder groups. It has also nailed down the following three factors:
There must be a clear ownership vision and strategy for the organization
This vision must take into account the family’s values as well as the needs and priorities of the business. It should be clearly…