{"id":1565,"date":"2025-04-02T08:05:41","date_gmt":"2025-04-02T06:05:41","guid":{"rendered":"https:\/\/blog.iese.edu\/family-business\/?p=1565"},"modified":"2025-06-16T16:44:52","modified_gmt":"2025-06-16T14:44:52","slug":"shared-family-purpose","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/family-business\/2025\/shared-family-purpose\/","title":{"rendered":"Shared family purpose: a path to multigenerational success"},"content":{"rendered":"

Guest contributor: Tarek el Sehity<\/strong><\/span><\/h2>\n

Tarek el Sehity is a researcher and lecturer at Sigmund Freud University in Vienna.<\/strong><\/p>\n

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As Viktor Frankl wisely observed, \u201cLife is never made unbearable by circumstances, but only by lack of meaning and purpose.\u201d<\/p>\n

This insight holds particular relevance for family-owned businesses, underscoring the critical importance of a shared purpose<\/strong> capable of inspiring and sustaining future generations.<\/p>\n

This raises the question: Why do some business families thrive and leave a lasting social impact<\/strong>, while others struggle to maintain their trajectory?<\/p>\n

Supported by the Sir John Templeton Foundation<\/a>, our research with Kendall Bronk, Anne Colby and William Damon<\/a> aimed to delve deeper on the impact of shared purpose in family-owned firms.<\/p>\n

As part of our study, we collected and analyzed insights from 25 multigenerational family enterprises,<\/strong> including family businesses, foundations and offices.<\/p>\n

Surprisingly, only about half of these families<\/strong> had established a clear, shared purpose. However, those that did revealed distinct advantages<\/strong> in terms of their cohesion, resilience and sustained success.<\/p>\n

The 5 pillars of family purpose<\/strong><\/span><\/h2>\n

As outlined in a previous post<\/a>, family purpose is a long-term, shared commitment among family members <\/strong>dedicated to making a meaningful impact beyond their immediate circle.<\/p>\n

According to our findings, it can also play a pivotal role in driving the success and sustainability <\/strong>of family-run firms.<\/p>\n

Unlike individual purpose, which drives personal fulfillment, a shared family purpose nurtures a powerful, unifying vision<\/strong> that sustains families over generations and guides their impact in the wider world. Based on our conceptual reflections, five key dimensions stand out:<\/p>\n

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  1. Long-term vision:<\/strong> Beyond a short-term endeavor, family purpose provides a meaningful direction that stretches across generations.<\/li>\n
  2. Active engagement:<\/strong> Purpose-driven initiatives are more than a passing hobby. Family members actively commit their time, energy and resources toward nurturing a shared purpose.<\/li>\n
  3. Stable commitment:<\/strong> A genuine family purpose is a meaningful composite of a family\u2019s historical actions and current aspirations.<\/li>\n
  4. Broadly shared commitment:<\/strong> While unanimous agreement isn\u2019t a requisite, the family purpose is acknowledged and valued by most family members.<\/li>\n
  5. Commitment beyond the family:<\/strong> Family purpose involves a conscious effort to positively impact the wider community or society.<\/li>\n<\/ol>\n

    Common traits among purpose-driven family firms<\/span><\/strong><\/h2>\n

    Our empirical study identified several common characteristics<\/strong> among families that effectively sustain a shared purpose:<\/p>\n