In My Experience: Carla Terry Osborne As the head of Osborne Group’s institutional relations, Carla Terry Osborne leads initiatives to foster pride of belonging among the company’s 330-plus shareholders, including Osborne’s broad calendar of events to commemorate its 250th anniversary in 2022. Here she shares what motivated her to join the family business and how […]
Osborne Group: 8 generations of passion and drive
In My Experience: Carla Terry Osborne As the head of Osborne Group’s institutional relations, Carla Terry Osborne leads initiatives to foster pride of belonging among the company’s 330-plus shareholders, including Osborne’s broad calendar of events to commemorate its 250th anniversary in 2022. Here she shares what motivated her to join the family business and how […]
Do we have an ownership strategy?
In our 2012 book Genesis of the Board, José María Navarro-Rubio and I explore the concurrence of three distinct spheres in family-controlled firms – ownership, business and management – which business owners must address in parallel. First is the ownership strategy, which outlines the owners’ vision in terms of the type of company they aspire […]
Baerlocher: Building on nearly 200 years of success
In My Experience: Michael Rosenthal Michael Rosenthal joined Baerlocher in 1976 and served as its CEO from 1980 to 2004, when he became chairman of the board. Founded in Bavaria in 1823, the firm is a leading supplier of plastic additives, with operations in 14 countries and more than 1,150 employees. In this article words, […]
A sense of purpose in family-owned firms
“The importance of serving stakeholders and embracing purpose is becoming increasingly central to the way that companies understand their role in society. A company cannot achieve long-term profits without embracing purpose and considering the needs of a broad range of stakeholders.” – Larry Fink, Chairman and CEO of BlackRock This powerful message, directed at the […]
What’s the purpose of a shared family purpose?
“To whom much is given, much will be required.” This precept dates back to biblical times yet remains just as relevant as ever among multigenerational family firms. By distributing their wealth toward specific social causes and concerns – often unrelated to their core business – high-net-worth families can serve as powerful agents of change. On […]
Types of shareholders in family-owned firms
Family-owned businesses, especially later-generation firms, are supported by different types of stakeholders: shareholders, investors and owners. There’s a fourth category – speculator – that I’m omitting since it’s not worth mentioning. In my view, there is no wealth creation derived from speculation, which moreover, rarely occurs in family firms. So what are the differences between […]
Finding the best external equity investor: one size doesn’t fit all
The market is currently flush with cash waiting to be invested, with no signs of a slowdown in sight. In this context, many privately-held family businesses are considering external capital to drive their corporate and family objectives. In their search for the optimal investment partner, family businesses need to make sure everyone’s objectives align – […]
Shared vision: it’s not just sticking together, it’s thinking together
Among the core characteristics of family-owned businesses is the desire to leave a legacy for future generations. To achieve this objective, the owner family must share a long-term vision and the resolve to ensure the firm’s continuity. In the firm’s initial stages, cultivating this commitment is relatively straightforward, since the founder is on the front […]
How do informal institutions influence family-owned firms?
As outlined in my previous post, the prevalence, strategy and performance of family-controlled firms (FCFs) differs across countries, yet research has primarily underscored formal institutions like regulations and legal frameworks to justify these differences. In our research, we widened the scope to explore how informal systems such as social ordering systems, hierarchies and values might […]
4 mechanisms to boost stakeholder engagement
There’s no doubt about it: companies that genuinely aspire to leave a positive and long-lasting mark in the world need to engage their stakeholders. But what are the most effective strategies to achieve this aim? To answer this question, I joined forces with Prof. Anabella Dávila from EGADE Business School (TEC de Monterrey) and IESE […]
