6 Traits of Strong Family Businesses

Family businesses are the cornerstone of most national economies, according to a recent report by Credit Suisse Research. They can create jobs, spur innovation, and drive superior returns.

However, as we highlighted in this 2015 HBR article, such success can only be achieved by following four rules: maintain good governance, identify and develop both family and non-family talent, pursue disciplined succession, and preserve family gravity.

Although most family businesses fail to last through the third generation, some are able to thrive. Why? Mastery of all six family gravity dimensions. They have values and vision, the right involvement, cohesion and interaction, family governance, and clarity on their leadership principles and roles.


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