A father watches his older daughter patiently help her little brother tie his shoelaces. She doesn’t show off or give instructions; she’s simply there, helping him at his pace until he gets it right. This simple interaction captures something profound: in a family, love isn’t measured by how we feel but in what we do…

During a business school case session, a participant asked what seemed like a simple question: “Is this a family business?” The class began with standard definitions: family ownership, board control, multiple family members in management roles...Then someone made a remark that transformed the discussion: “A family business is one where the family actively strives to…

Guest collaborator: Dominique Nelson (MBA ’26) President of the MBA Family Business Club The Legacy & Future Family Business Conference grew out of an amazing experience shared by a group of IESE MBA students, all members of the Family Business Club. In March, more than twenty of us traveled to Harvard Business School for the…

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…

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…

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…

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…

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…

According to the “Discovering to the Spanish family office” by OpenWealth (Grupo CaixaBank) and finReg360, 35% of family offices in Spain will face a generational shift over the next 10 years, making a solid succession plan essestial to ensuring their long-term success and sustainability. One in three family offices in Spain will be facing a…

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,…

The phenomenom of financial activism has broadened its reach, no longer reserved for U.S.-based companies or large multinationals. More and more, activist funds–especially hedge funds–are buying stakes in companies they consider “mismanaged” or under-optimized, aiming to force changes in their strategy and governance, and in some cases, even their shareholder structure. Hedge funds and family…

When I meet a business family, I usually start by asking about their values. With one notable exception, when my query was answered with a portfolio of stock market investments–naturally I had to redirect the conversation–most open up by sharing their personal values and those they hold as a family. In my dealings with successful,…

Don't miss the 2nd IESE-IEF Forum for Reflection! Mark your calendar for May 30, when we will convene leaders, experts and scholars on IESE's Barcelona campus to debate the key moments that define the future and continuity of family businesses. If you are an owner, executive or collaborator of a family-owned firm, be sure to…

Co-author: Jessenia Davila, Post-Doctoral Researcher at IESE Environmental, social and governance (ESG) criteria have become an established practice in the corporate landscape, leading more firms to tie executive compensation to ESG performance. Known as ESG pay, this approach is transforming incentive structures and redefining the meaning of success at the top. But for the leaders…

In an era marked by trade tensions, disruptive technologies and shifting global priorities, the ability to adapt quickly can be a decisive advantage. As businesses grapple with ever-changing conditions, one approach deserves special attention: optionality. Popularized by Nassim Nicholas Taleb–former Wall Street trader, scholar and author of The Black Swan and Antifragile–optionality entails keeping multiple…

Guest contributor: Tarek el Sehity Tarek el Sehity is a researcher and lecturer at Sigmund Freud University in Vienna. As Viktor Frankl wisely observed, “Life is never made unbearable by circumstances, but only by lack of meaning and purpose.” This insight holds particular relevance for family-owned businesses, underscoring the critical importance of a shared purpose…

Family businesses form the cornerstone of the global economy. Their ability to create employment, drive innovation and enhance social cohesion also makes them a key player in the transformation toward a more sustainable world. That said, the social dimension of ESG (environmental, social and governance) in family-owned firms remains a challenge both in terms of…

All family businesses that have effectively navigated generational handovers have faced similar challenges. One way of analyzing these challenges is through the lens of different generations, since the obstacles encountered by first-generation companies differ significantly from those faced by second, third or subsequent generations. Statistics according to the business life cycle According to data from…

Family businesses are the backbone of many local and global economies as drivers of both employment and economic stability. However, categorizing them as a single, uniform group limits our understanding of the numerous complexities and nuances among them. Far from a homogeneous collective, family-owned firms can differ in fundamental ways that shape their governance, strategic…

Last November, I offered some reflections regarding what family shareholders deserve from their family business. This article takes the opposite approach: what do family businesses deserve from their family shareholders? The answer is clear: responsible and efficient performance. As is often the case, this is easier said than done. Let's start with the essence of…