To Honor and to Grow: Recommendations for the Enduring Family Business

Abstract

Family businesses are unique and complex; they have aspects and layers to them that are unlike any other organizations because at the root of family businesses' identities are the aspirations of both the business and the family's members, which could be at odds with one another. This note—a meta-analysis drawn from many authors' work—explores an approach that identifies ways to unify family and business, examining new possibilities and building a strong resiliency in the process. This analysis of various characteristics within family businesses provides opportunities to learn about how families are unique, offers examples of family businesses (when possible), and, most importantly, leads to clear recommendations. Excerpt UVA-ENT-0224 Rev. Jan. 17, 2020 To Honor and to Grow: Recommendations for the Enduring Family Business Family businesses are unique and complex; they have aspects and layers to them that are unlike any other organizations. Interesting and importantly, they combine Freud's idea of what constitutes a complete life: lieben und arbeiten [to love and to work]. At the root of family businesses' identities are the aspirations of both the business and the family. These two sets of goals are often seen as opposites, which suggests a need to reconcile, manage, or overcome such conflicting sets of demands. In this way, a family business must then choose between the needs of the business and the needs of the family. Perhaps a more effective approach is a more expansive view—one that identifies ways to unify family and business, exploring new possibilities and building a strong resiliency in the process. The examination of various characteristics within family businesses provides opportunities to learn about how families are unique, offer examples of family businesses (when possible), and, most importantly, lead to clear recommendations. These characteristics include family and business, business history and current reality, preservation and adaptation, family transitions and succession planning, the idea of an open bubble, a changing market environment for a company steeped in its legacy, family and culture in a business, new forms of communication with the same messaging, one family with new members, and plans for the future that are consistent and relevant. As such, each section of this note will demonstrate how family businesses can embrace their inherent complexities and challenges to create differentiating and enduring advantages.