Next generation family business 2019 has been saved
Next generation family business 2019
Long-term goals, meet short-term drive
Bridging the chasm between long- and short-term priorities can be a challenge for many family businesses. Those who wish to hand down control to future generations need to address the disconnect.
Family businesses tend to lean toward a long-term view that is rooted in shared values, vision, and culture. However, to thrive in today’s rapidly changing business environment, they also need to take relevant short-term action. In a world shaped by disruption, digitization, and globalization, the question is: are they ready to face the challenge?
Deloitte’s Global Family Business Survey 2019 explores how family businesses can find the right balance between long-term goals and short-term needs by tapping into the views of hundreds of family-owned companies in four key areas: ownership, governance, succession, and strategy.
In a family business, success often depends on two factors: governance and communication. And even if each family has different dynamics, there are three principles that can help them have more effective conversations:
- Openness: facilitate open discussions that allow each party to have their voice heard and recognized.
- Boundaries: the mechanisms for managing the meetings should be agreed upon in advance.
- Seeking an outside perspective: take advantage of non-family directors who can help discuss business goals without bias.
It is imperative not to let the pressures of the present derail the business from its path to its chosen future. Deloitte’s “zoom in/zoom out” strategy approach can help family businesses balance short-term actions and long-term goals by focusing on a set of carefully selected initiatives.