Preserving the Legacy of a Family-Owned Business
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Like anything worth keeping, it takes work to preserve. My year background working with retirement planning issues has given me insight into both the opportunities and risks associated with retiring. I am Co-Director of th Steve Parrish Contributor. Read More. They and their employees benefit from their long-term approach to management, more inclusive environments, and broader purposes.
Results: Refocused Growth
These market leaders offer exceptional professional opportunities to both men and women, and to family members and non-family members. In addition, they set an example for all businesses that want to succeed—and advance women. Read more stories here. Skip to navigation Skip to content. So what do family businesses do differently? Inclusive environments In addition to taking a long-term approach to management, family businesses are also characterized by their focus on people and relationships in addition to profits.
Carrie G. This tenure is nearly triple that of the lifecycle for a CEO at a publically traded company. A global study published by IIC Partners in revealed the average number of years a senior executive spent in their position at a publicly traded company was between 7 to 8 years.
Publications such as the Journal of Management Studies, have underscored this notion of long-term commitment. A recent study found that even when CEOs of a family-owned business are approaching retirement, they are willing to continue engaging in international acquisitions.
A publically traded company or private firm will think quarter to quarter, while a family business will think generation to generation. Will this CEO be able to train and develop the next generation of leaders in the business? Leadership shifts and selections for publicly traded firms are more transactional in nature and hire for the short term.
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Family businesses characteristically maintain a sense of loyalty and integrity to their employees and this is reflected in their hiring strategies as well. Leading a family business has many unique dynamics at play when it comes to appointing the right talent in the C-suite. We are all born into families, functional and dysfunctional, we have an innate understanding of what it means to interact with family members - there is a behaviorally programed expectation of each relationship.
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Like any family dynamic, there will always be outside factors beyond business that influence decisions and motivations. One client I worked with had 7 family members on their Board of Directors.
They selected our firm to initiate a search and appoint a new CEO for their company. This was one of the longest searches I worked on and lasted nearly 20 months.
The reason for this was not because we had a lack of interest or candidates - we had plenty of candidates!