Leadership Lessons from Great Family Businesses

Studies of recent leadership transitions occurring at 50 top family firms around the globe show that successful family-owned businesses have four key elements. They set a governance baseline that includes oversight from a professional board, alleviating issues such as nepotism and hidden agendas. They also preserve family gravity, or the face of the company as projected through a key family member. They identify future leaders outside the company using core values, which typically include integrity, respect, quality, and passion. Finally, they have a disciplined chief executive officer succession process, which includes discussion with shareholders, a procedure for candidate selection, and an agenda for integrating the successor.