Over how many generations do you think a business can pass in a family succession tradition?
Well, according to an article in South China Morning Post, the Hoshi Royan in the Awazu Osen district off the northwest coast of Japan, the answer is 46 generations and still counting. The Family Inn is presently managed by a member of the 46th generation and following the death of the eldest son is now going to pass to the grandson (48th generation) while the son-in-law will be a caretaker in the interim.
Succession in a family business is often challenging and the folklore that family businesses do not survive pass the 3rd generation is often true. But there are examples of family businesses that have survived across many generations and there are lessons to be learnt from these businesses. In the case of the Hoshi Family they attribute their success to a clear vision of the purpose of their business that is passed from generation to generation. The family is the guardian of the history that is reflected in the Inn they operate and its place for over 1300 years in the district – “… there is a sense of history in every corner of the property, from the beautiful garden to the famous tea room.”
Hoshi describes also his business philosophy as to “study the water running down a small current”. A philosophy which he says represents the imagery that, “water has a drive and from there it continuously improves the stream moving small obstacles on its way”. Translated across to the business it means a continuous focus on providing hospitality and preparing succession to future generations.
In any business a strong sense of purpose which pervades the business is critical to its enduring success. It allows the business to define and know its role in the community that it serves over many lifetimes. And where succession is intertwined with that purpose it ensures that the family and business are one.
