Families are families and businesses are businesses, but what makes each successful and enduring?
I recently heard a family member say that a family will stay close even if there is no business activity to connect them. Every family is different and some are naturally closer than others. Some connect well and others do not but the question becomes one of what, if any, is the glue that can connect families over generations as they grow?
If you’re serious about connecting a family across generations then it is probably better not to leave it to chance.
If it is managed well, a business can last for centuries – and some have. Such businesses have a purpose, a role in their communities, a family attitude towards its people and a carefully chosen leadership team who ensure its prosperity, and a view to the future. There is an activity that draws everyone together into that business, day after day, a culture that upholds its purpose and a respect for people. Profit is not a focus nor purpose but simply a necessary outcome.
Some families physically locate themselves in the same house or in the same street or in walking distance. Living close by can make it easier to connect and encourage families to stay together as families expand. But it’s not likely going to be the glue that holds that family together – there needs to be something else. Without the glue, it will be weddings, funerals, key birthdays and seasonal events that may see the family coming together almost as a matter of obligation.
In a family that has established a multi-generational family business and learnt how to transition businesses well (which includes growing them) the business can form a strong durable glue to bind the family.
I’m not speaking here about controlling wealth so any family member who wants some must comply. That approach will not endure past two generations.
A generational family business can become the glue as it serves as an activity, a focus that can be shared across all members of the family. It draws them together into a common cause, which then allows the family connections to be supported and strengthened. In simple terms, it provides a very good, and interesting reason, for the families to come together and function as a team. And it provides a ‘living history’ that can be passed down through the generations.
And yes, the business must be well managed, its leadership chosen carefully, family members must be engaged in the business, new gen leaders must be trained and developed, and, most importantly, family leaders must recognise, highly value and invest in the business as the family glue.
What families compound their wealth across many generations? Answer: Those with active, growing businesses in which the family participates at all levels.
What are the longest living businesses in our society? The ones which have lasted more than a 1000 years, and are still going? Answer: Multi-generational family businesses.
Active Knowledge Questions:
- Do you want to see your family name carry across generations and be a strongly connected family?
- Do you ever consider how that may occur and what contribution you may make?
It starts the day you form your family and a family business can be the most valuable contribution you make.
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Searching for the world’s best family business succession guide? Buy Transition – Orienteering The Five Lands of Succession.
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All the best in the success of your business,
Richard Shrapnel
