Guest contributor: Tarek el Sehity
Tarek el Sehity is a researcher and lecturer at Sigmund Freud University in Vienna.
As Viktor Frankl wisely observed, “Life is never made unbearable by circumstances, but only by lack of meaning and purpose.”
This insight holds particular relevance for family-owned businesses, underscoring the critical importance of a shared purpose capable of inspiring and sustaining future generations.
This raises the question: Why do some business families thrive and leave a lasting social impact, while others struggle to maintain their trajectory?
Supported by the Sir John Templeton Foundation, our research with Kendall Bronk, Anne Colby and William Damon aimed to delve deeper on the impact of shared purpose in family-owned firms.
As part of our study, we collected and analyzed insights from 25 multigenerational family enterprises, including family businesses, foundations and offices.
Surprisingly, only about half of these families had established a clear, shared purpose. However, those that did revealed distinct advantages in terms of their cohesion, resilience and sustained success.
The 5 pillars of family purpose
As outlined in a previous post, family purpose is a long-term, shared commitment among family members dedicated to making a meaningful impact beyond their immediate circle.
According to our findings, it can also play a pivotal role in driving the success and sustainability of family-run firms.
Unlike individual purpose, which drives personal fulfillment, a shared family purpose nurtures a powerful, unifying vision that sustains families over generations and guides their impact in the wider world. Based on our conceptual reflections, five key dimensions stand out:
- Long-term vision: Beyond a short-term endeavor, family purpose provides a meaningful direction that stretches across generations.
- Active engagement: Purpose-driven initiatives are more than a passing hobby. Family members actively commit their time, energy and resources toward nurturing a shared purpose.
- Stable commitment: A genuine family purpose is a meaningful composite of a family’s historical actions and current aspirations.
- Broadly shared commitment: While unanimous agreement isn’t a requisite, the family purpose is acknowledged and valued by most family members.
- Commitment beyond the family: Family purpose involves a conscious effort to positively impact the wider community or society.
Common traits among purpose-driven family firms
Our empirical study identified several common characteristics among families that effectively sustain a shared purpose:
- Shared virtues: Families generally share strong moral or civic values and rules, which underpin their collective activities.
- Cohesive bonds: Strong relationships, fostered through traditions and regular communication, enable even extended families to work harmoniously toward their purpose.
- Purpose champions: Specific family members consistently articulate, advocate and embody the family’s purpose.
- Humble leadership: Effective family leaders model humility and active listening, capable of managing family members’ divergent perspectives.
- Shared beliefs: Some purposeful families find strength and unity in common religious or philosophical beliefs that anchor their collective vision.
- Strong family identity: A clear understanding of the family’s history and identity reinforces a shared sense of purpose and commitment.
Cultivating or reviving family purpose
For families seeking to cultivate or reinvigorate their shared purpose, our research offers several actionable insights, including the benefits of designating and supporting “purpose ambassadors,” celebrating the family’s heritage and historical narrative, fostering open dialogue and promoting authentic conversations about the family’s shared values, goals and roles in the broader community.
Ultimately, our study highlights the transformative power of a clearly articulated and actively pursued family purpose.
By uniting family members around a common vision and mission, this shared commitment is instrumental in promoting the long-term sustainability and resilience of family-owned firms.
Homepage image: Brandon Green · Unsplash