Far more than an abstract ideal, happiness a fundamental condition for both individual and collective success.
Martin Seligman, a global authority in positive psychology, offers the PERMA model as the foundation of well-being, built upon five core components: positive emotions, engagement, relationships, meaning and accomplishment.
As a professor specialized in human behavior within organizations, I’ve been a firsthand witness of the transformative power of PERMA in fostering development–or, as Seligman would say, flourishing–among individuals.
This framework offers valuable insights not only for individuals but also for family businesses, where the intersection of personal and professional spheres creates both challenges and opportunities. When effectively managed, family dynamics can become a forceful source of cohesion and sustainability.
Within the PERMA model, two pillars stand out as especially relevant for family businesses: relationships and purpose. Cultivating these elements not only fosters individual well-being but bolsters cohesion and ensures the continuity of the family legacy.
In this article, we’ll explore how family businesses can integrate these dimensions into their well-being strategy.
1 – Relationships as the foundation of happiness and cohesion
Relationships are the root of every family, but in family businesses, their quality and strength also play in role in advancing–or undermining–the company’s success.
Transparent, open communication is key to building trust and easing tensions. Unfortunately, many family-owned firms assume that their values and goals are implicitly shared, which can lead to misunderstandings and resentment.
To promote strong relationships, family firms should create structured spaces for dialogue where everyone can freely express their ideas, concerns and aspirations. A key step in this process is holding regular family meetings focused on forging personal bonds.
These gatherings become even more effective when supported by a family protocol, which serves as a guide for robust decision-making and managing people’s expectations.
Fostering intergenerational interaction is another highly effective way to fortifying family ties outside the regular “business as usual” context. Whether through community projects or family trips, these shared experiences create a collective narrative and reinforce family identity.
2 – Shared purpose: the heart of the family legacy
Shared purpose is a crucial component of well-being, and for family businesses, its influence is transformative. A common goal gives meaning to daily activities and unites members around a collective long-term vision. Developing a shared purpose may involve defining a positive impact that extends beyond the business itself.
Many family businesses have found philanthropy can be a remarkable driver of family cohesion. By participating together in social or environmental initiatives, family members reinforce their values and sense of collective pride.
This approach is particularly effective for engaging younger generations, whose values often align with issues such as sustainability and social responsibility. Through these initiatives, younger members find deeper meaning in their roles within the family, helping to ensure the continuity of the family’s legacy.
For family businesses, the holiday season offers an ideal time to reflect on family bonds and prioritize their collective well-being. With a focus on building strong relationships and cultivating a shared purpose, families can increase their happiness while promoting long-term sustainability and success.
In the words of Martin Seligman, we invite you to embark on this journey of family flourishing. What better gift than a united, committed family motivated by a common purpose?
From IESE’s Chair of Family-Owned Business, our warmest wishes for a Joyful Holiday Season and New Year full of happiness, harmony and shared achievements.