What happens when a family council agrees on a succession plan entailing both current and next-generation leaders, but some family members fail to follow through? Consciously or unconsciously, their day-to-day actions slowly deviate from what was agreed and expected. The result: the succession process starts to derail. Imbalances and interference come into play, leading to […]
Between prudence and paralysis: three strategies to advance in uncertain times
Reading the Harvard Business Review article “How to Lead When Things Feel Increasingly Out of Control,” I was struck by its particular relevance for family-owned firms—businesses often criticized for delaying critical decisions and missing opportunities amid uncertainty and volatility. This perception notwithstanding, many family businesses bring decades of hard-won experience in navigating uncertainty. They have […]
Four insights to maximize non-family leadership
The decision to integrate non-family executives into a family business is often described as a pivotal moment of “professionalization.” According to conventional wisdom—frequently reinforced by advisors—seasoned outsiders inject discipline and boost performance. While non-family managers are critical to the growth of many family firms, academic research shows that their positive impact is not automatic. Hiring […]
Intergenerational dynamics: conflict or collaboration?
Years ago in a family business, both the president (father) and CEO (son) made the same confession: “We constantly clash and argue in every meeting—right in front of our managers.” I told them we needed to find a solution. Their response came in unison—blunt and unequivocal: “This problem has no solution.” I decided to take […]
Multigenerational family firms: the four pillars of values transmission
Guest contributor: Tarek el Sehity Tarek el Sehity is a researcher and lecturer at Sigmund Freud University in Vienna. As explored in the first article of this two-part series, core family values represent a central differentiating factor between family and non-family enterprises, as well as a strategic driver. Rather than a static, top-down process, our […]
Family values: legacy is co-created, not handed down
Guest contributor: Tarek el Sehity Tarek el Sehity is a researcher and lecturer at Sigmund Freud University in Vienna. “For things to remain the same, everything must change.” Giuseppe Tomasi di Lampedusa, The Leopard This enduring wisdom captures a fundamental truth for business families that have withstood the test of time: preserving the values that […]
Challenges from the 2nd generation and beyond
In a previous article, we analyzed the key hurdles faced by family businesses based on their life cycle. In this post, we’ll turn our focus to the challenges they encounter in their transition from the second to the third generation and beyond. The second generation: reorganizing ownership and managing divergent interests After successfully navigating the […]
3 insights to enhance family dynamics
A father and daughter sit in a boardroom. He believes he’s giving her sound advice; she hears only criticism. Across the table, what could be a constructive dialogue turns into stony silence and simmering resentment. Scenarios like this play out every day in family firms, where conversations carry multiple layers of meaning. Running a family […]
The importance of adaptive intelligence in family firms
In a world where change is the only constant, our greatest risk isn’t ignorance, but certainty. In my recent Forbes article, I highlight the importance of Adaptability Quotient (AQ): the ability to adjust and pivot when reality doesn’t align with our expectations. AQ is essential for leaders of all types of organizations, but especially in […]
2nd IESE-IEF Family Business Forum for Reflection: insights from the front lines
On May 30, we welcomed nearly 200 owners and leaders of family-owned firms to our Barcelona campus for the 2nd annual IESE-IEF Family Business Forum for Reflection. Under the theme “Building the Future: Key Moments in the Evolution of the Family Business,” the event featured a roster of top-caliber speakers from diverse companies and industries, […]
