On Saturday, November 14, IESE will host the second edition of the Legacy & Future Family Business Conference, organized by the MBA Family Business Club. With a cross-generational focus, the event will bring together family business leaders, investors, experts and MBA students from across Europe to discuss succession, corporate governance, family offices and strategies for […]
The family council (I): a key governance body in the family business
Author: Jon Martínez Echezárraga Visiting professor at IESE Business School and a professor at ESE Business School, Universidad de los Andes in Chile, where he also leads the Center for Business Families. Pedro is a third-generation member of a family-owned firm founded by his grandfather. He lost his job 10 months ago, and his mother, […]
Thinking of setting up a family office? Start with these three questions
For many business families, a family office takes shape before anyone calls it one. Dividends accumulate, a division is sold and the family holding company builds a portfolio beyond its stake in the operating business. Eventually, that wealth requires its own resources, people and decisions. Pontegadea offers a well-known example. Created in 2001 to reinvest […]
When owners serve on the board
In many family businesses, the main shareholders also serve on the board of directors. It makes sense. They know the company’s history, bring the owners’ perspective, feel personally invested in the business and have a clear interest in its continuity. But being logical doesn’t mean being free of risk. In this article, we’ll examine both […]
Four rooms, four matrices: where do we start?
Imagine this scenario: for the first time in its history, a family business is considering appointing a non-family CEO. An initial question might be: Is the family ready for this next stage? But this question might be too broad. Owners may agree that they want to keep the company in the family for generations, yet […]
Power, leadership, management or culture: not every tool works for every problem
Last week we examined the foundations of the four rooms model in family business and why addressing a specific issue in the right room is so essential. In today’s installment, we’ll add another layer to this framework: the valuable tools proposed by the renowned scholar Clayton Christensen. Christensen’s diagnostic starts with two key questions Finding […]
ESG performance in family firms
According to common wisdom, the unique characteristics of family firms give them a natural edge when it comes to ESG performance. This IESE Insight article suggests a more nuanced reality, with highlights from recent research by NYU Stern professor Belén Villalonga and IESE professors Marta Elvira, Igor Kadach and Gaizka Ormazabal. What drives sustainability performance? […]
Four rooms, four matrices: choosing the right tools for change in family business
Family businesses are rarely at a loss for tools. They can establish a board of directors, redesign incentives, bring in an outside CEO, draft a family protocol, convene a family council or call in a mediator. The real challenge lies elsewhere: how do you know which tool to use, where to use it and when? […]