BlueSky Thinking Summary

Family businesses can sustain generations by first placing the emotional ties among successors at a very young age and making them feel connected with the task of the business.

Succession planning well in advance avoids ambiguity, with transparency and clear governance rules for sustaining organizational stability.

Timely transitions are necessary lest frustration sets in with the waiting younger leaders.

To overcome inertia and, therefore, to be able to respond and remain competitive during periods of economic change, the empowerment of non-family management, board formalization, and a culture of innovation are important.

The bottom line is adaptability;

successful transitions may involve changes in business directions to comply with market changes, a characteristic example of strategic evolution in family firms.

Eventually, the gradual build-up of responsibilities with successors promotes resilience and innovativeness, hence longevity, of a family business in dynamic economies.