Family-run businesses are often highly successful initially, but flounder after two or three generations. How can they improve their sustainability? In a video interview with the Harvard Business Review, Claudio Fernández-Aráoz senior adviser to Egon Zehnder, reports on the key findings of the firm’s recent survey of leading, longstanding family firms. The
Leadership succession is one of the most critical and daunting tasks a family business can face. Unfortunately, there are few resources that set forth in a concise way established best practices and then provide practical guidance on their implementation.
In a recent study, Egon Zehnder and Family Business Network International interviewed executives at 50 of the world’s top family firms - mostly in the third or fourth generation - to discover how they unlock great leadership.
An Advisory Board is a body that advises the management of an organization, foundation or corporation. Unlike a Board of Directors, an Advisory Board has no authority to vote on matters, nor does it have any legal or fiduciary responsibility.
Family businesses are frequently overshadowed by major corporations, yet they make up the majority of businesses in virtually every country in the world. They are, in other words, the backbone of the economy.
Away from the meta-national decision centers, family businesses in emerging and fringe economies need to continuously adapt their business models to the growing presence of globalization. Sometimes, this can mean they have less time or lack the necessary focus to optimize vital internal processes, such as top-level succession planning.