Over the years, the Chair of Family-Owned Business has written extensively about one central idea: strong families don’t automatically evolve into strong owners.
Solid values, commitment and a long-term perspective are real advantages of family ownership, but they only translate into sustainable performance when they are supported by robust governance.
In many family firms, governance issues might not surface in the early years. When ownership is concentrated and relationships are close, trust is personal and roles are rarely questioned. But as families grow, generations multiply and ownership becomes more dispersed, those informal arrangements begin to break down.
What once worked through informal interactions now requires structure. When that structure is missing, decisions become emotional, with negative consequences on the firm’s strategic direction.
Governance = clarity
Governance is often misunderstood in this context. Far from promoting unnecessary bureaucracy or distancing the family from the business, governance is about clarity: clarity on roles, decision rights and, just as importantly, on the right forum for each conversation.
Responsible shareholding goes far beyond approving balance sheets or arguing about dividends. It requires a shared ownership strategy: a clear view on what kind of owners the family wants to be, how it balances growth, control and liquidity, and over what time horizon.
Without this shared perspective, boards and management are left to interpret conflicting signals, and day-to-day execution becomes harder than it needs to be.
It also requires boards with a clearly defined mandate and genuine independence to translate owner expectations into strategy and oversight, while bringing independent judgment to key decisions about leadership, risk and long-term direction.
The role of responsible shareholders
Taken together, these insights point to a simple but fundamental truth: family firms only reach their full potential when families learn to act as responsible, disciplined and forward-looking shareholders.
On March 16, 2026, these questions will be front and center at the 2026 IESE CCG-ESGI Family Firms: Purpose, Economic Performance and Social Impact Conference.
Held on IESE’s Madrid campus, the daylong event will bring together leading academics, business leaders and investors to explore how ownership choices shape long-term performance and social impact.
During the conference, I will have the privilege of moderating a panel with three leaders of premier family-owned businesses: Sabina Fluxá, Executive Vice-Chairperson of Iberostar; Francisco J. Riberas, Chairman of Gestamp; and Gildo Zegna, Chairman of Ermenegildo Zegna.
I sincerely hope you can join us for this high-impact gathering on the role of responsible ownership in ensuring that the family remains a source of strength for the business across generations.
Homepage image: Elaine Heyes.