Four siblings. Third generation. Twenty years ago, their father divided the shares in four equal parts: 25% each. It seemed fair at the time, and he wanted to keep peace in the family—and at first, he got his wish. But now the business is confronted with a major strategic decision: entering a new market, refinancing, […]
The four pillars of succession
John walked into the corner office. He had just been named CEO a week earlier, following his father’s unexpected death. He had spent twenty years working alongside him, preparing for that moment. He was the designated successor. And yet, sitting in that chair for the first time, he realized he had inherited the title, the […]
From the Rhine to the Rift Valley: family business lessons from Ethiopia
Ermias Mebrate Mengistu leads the IESE Africa Initiative, launched in 2009 to promote Africa-focused research, programs, exchange modules and faculty development on the continent. On an April morning in Addis Ababa, a group of Ethiopian family business leaders gathered at WeVenture Hub. There was no podium or formal presentation—just coffee and a guest with an […]
When the family grows faster than the business
For years, succession has been viewed as the primary hurdle in family businesses. But today, many business families face a different challenge. The issue is no longer finding talent—inside or outside the family—but managing the growth of the family itself. As generations advance, the family often grows at a faster pace than the business. What starts […]
What should we fix first: the business or the family?
When family-owned companies—where ownership and management often overlap—face years of weak results, rising debt and tight cash flows, owner families have little choice but to act. Focusing on the business is a common trap—the real issue often lies within the owning family. Key causes include: A lack of strategic thinking and a clear long-term vision […]
Responsible ownership in times of disruption
What does responsible ownership mean for family-owned businesses operating amid international expansion, generational transitions, intense competition for talent, and constantly evolving market conditions? That question sat at the heart of the closing roundtable of the Family Firms: Purpose, Economic Performance and Social Impact Conference, held on March 16 on IESE’s Madrid campus. The discussion brought […]
When trust breaks down: employee disputes in family firms
Co-author: Uzay Sezer This article was co-written by Uzay Sezer. Holder of a PhD in Business Administration and Management from Università Bocconi, his research explores family firms, corporate governance and incentive designs. On March 16, IESE’s Madrid campus welcomed renowned scholars, business leaders and investors for the 2026 IESE CCG-ESGI Conference, “Family Firms: Purpose, Economic Performance […]
Why family businesses should develop people, not just create wealth
Co-author: Carlos Folle Professor of marketing and family business at IEEM Escuela de Negocios at the Universidad de Montevideo whose areas of expertise include go-to-market strategy and the governance, ownership and succession of family businesses. Much has been written about the symbiotic relationship between the family and the business. When scholars and advisors describe the […]
When meritocracy meets bloodlines: the family business succession trap
Our next CEO will be chosen based on capability. We’re professionalizing our leadership. In our company, board seats are earned. Statements like these are common in the realm of family-owned firms, signalling how strongly they value the language of merit. Yet the lived reality often tells a different story: appointments seem predetermined, performance standards become […]
IESE EVENT: Families as responsible shareholders
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 supported by robust governance. In many family firms, governance issues might […]
